Half-year Report.

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN CHINA GROWTH & INCOME PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS

ENDED 31ST MARCH 2025

Legal Entity Identifier: 549300S8M91P5FYONY25

Information disclosed in accordance with the DTR 4.2.2

Highlights

·      NAV total return of +4.2% in sterling terms compared with +10.4% for the MSCI China Index) (the 'Benchmark'). Share price return of +9.4%, with the discount narrowing from the previous year end of -13.1% to -9.1%.

·      For ten years cumulative ended 31st March 2025, NAV total return of +60.9% outperforming the Benchmark return of +53.4%.  Share price return of +67.9%.

·      It is the intention to declare the fourth interim dividend of 2.73p on 1st July 2025 bringing the annual dividend for the year ending 30th September 2025 to 10.92p.

·      The Company did not repurchase or issue any shares during the period. Since the period end, 93,699 shares have been bought back into Treasury at an average discount of 11.3%.

·      The Board announced the appointment of Mr. Nick Bannerman to the Board effective 24th January 2025.

The Chairman of JCGI, Alexandra Mackesy, commented:

"While the short-term performance is certainly disappointing when compared with the Company's benchmark, it should be noted that much of the rise of the MSCI China Index during the period was again driven by value stocks, particularly state controlled financial companies." 

"The Company's disciplined Portfolio Managers focus on the long-term prospects of quality growth companies, which lagged behind. We note that, over the longer term, our Company has made positive absolute returns, outperforming the benchmark over ten years."

"While short-term volatility may persist, given the current geopolitical uncertainties, the Board shares the Portfolio Managers' optimism about the long-term prospects for the Chinese stock markets and the opportunities that will benefit the patient investor, and continues to work closely with them to ensure that the Company maintains its long track record of absolute gains and long-term outperformance."

Portfolio Managers Rebecca Jiang, Howard Wang and Li Tan, commented:

"The geopolitical developments that have unfolded over the past six months, especially the new US administration's aggressive tariff policies, have fuelled a major escalation in tensions between China and the US."

"However, despite this unhelpful backdrop, we still see reasons for cautious optimism about the outlook for Chinese economy, Chinese equities and for our portfolio, over the remainder of this year and well beyond."

"We have adapted the portfolio to reflect new realities and are comfortable that our holdings are either concentrated in domestically focused businesses with immunity from tariffs, or in exporters that have strong pricing power and well-diversified supply chains and are thus well-positioned to weather the challenges presented by higher tariffs."

"In addition, the portfolio is positioned to benefit from China's evolving regulatory landscape, which now prioritises a pro-entrepreneurs and pro-equities stance…. The long-term outlook is bolstered by resilient entrepreneurial innovation, particularly in technology-driven sectors…. Combined with policy makers' renewed balance between fostering growth and modifying excess capacity, these dynamics support a constructive trajectory for growth-oriented equities."

Enquiries:

JPMorgan China Growth & Income plc

Investor Relations

Alexandra Ellaby, JPMorgan Funds Limited

E-mail: alexandra.ellaby@jpmchase.com

Telephone: 0800 20 40 20 or or +44 1268 44 44 70

CHAIRMAN'S STATEMENT

Performance

During the six months ended 31st March 2025, volatility yet again buffeted Greater China stock markets. With volumes remaining thin and investors hugging the sidelines, trading was lacklustre in the final quarter of 2024, despite the central government's announcements of additional fiscal and monetary measures designed to stimulate the Chinese economy. Confidence improved at the start of Chinese New Year, amidst excitement about the implications of Chinese artificial intelligence platform DeepSeek's unexpected model launch, President Xi's meeting with major Chinese entrepreneurs, and indications of a stabilising domestic economy. The Company benefitted from renewed interest in Chinese markets, with its share price climbing 27% to 284 pence in mid-March from the end of 2024. But this was not to last. As US President Trump's confused and often contradictory comments, particularly about import tariffs, shook global markets, the Company, together with Chinese markets, lost significant ground in the final days of March. As a result, over the six months ended 31st March 2025, the Company's total return on net assets (with net dividends reinvested) rose a modest +4.2%, trailing the MSCI China Index, which increased +10.4%. Over the same period, the Company's total return on share price was +9.4%, with its discount to net asset value ('NAV') narrowing from -13.1% at the previous financial year end to -9.1% at the half year end.

While the short-term performance is certainly disappointing when compared with the Company's benchmark, it should be noted that much of the rise of the MSCI China Index during the period was again driven by value stocks, particularly state controlled financial companies. The Company's disciplined Portfolio Managers focus on the long-term prospects of quality growth companies, which lagged behind. We note that, over the longer term, our Company has made positive absolute returns, outperforming the benchmark over ten years.

The relative underperformance to the benchmark index is explained in detail in the Investment Manager's Report in this Half Year Report. This section of the report provides a detailed commentary on the portfolio positioning, the investment strategy and the outlook for investing in China.

Loan Facility and Gearing

The Board has given the Portfolio Managers the flexibility to manage gearing tactically within a range set at 10% net cash to 20% geared. During the period, the Company's gearing ranged from 2.4% to 11.7%, reflecting the Portfolio Managers' increased confidence in the Chinese markets, ending the half year at 10.7%. The Portfolio Managers took advantage of lower cost Contracts for Difference (CFDs), in addition to the Company's loan facility with Industrial and Commercial Bank of China Limited, London Branch (ICBC).

There is currently £3.9 million drawn down on the existing £30.0 million loan facility with ICBC, which expires in July 2025. The Board is currently in the process of reviewing various loan renewal options.

Our Dividend Policy

In the absence of unforeseen developments, the Company's dividend policy aims to pay regular, quarterly dividends, equivalent in total to 4% of the Company's NAV on the last business day of the preceding financial year, in order to provide clarity to shareholders over the income stream they can expect during the following 12 months. This is paid by way of four equal interim dividends on the first business day in December, March, June and September.

On 1st October 2024, the Company announced that the cum income Net Asset Value at the close of business on 30th September 2024 (the Company's year-end) was 273.29 pence per share. In line with the Company's distribution policy, the Directors declared the first quarterly interim dividend of 2.73 pence per share. Since then, two further dividend declarations have been made on 3rd January 2025 and 1st April 2025, both of 2.73 pence per share. With the planned declaration of the final quarterly dividend of 2.73 pence per share on 1st July 2025, in the absence of unforeseen circumstances, the annual dividend for the year ending 30th September 2025 will be 10.92 pence per share (2024: 11.04 pence).

Share Capital

At the time of writing, the Company's issued share capital consists of 83,202,465 Ordinary shares, including shares held in Treasury. During the six month reporting period, the Company did not repurchase or issue any shares. Since the period end, 93,699 shares have been bought back into Treasury, at an average discount of 11.30%.

Board of Directors

As part of the Board's long-term succession programme, I am delighted to announce that Mr Nick Bannerman has been appointed to the Board with effect from 24th January 2025. A qualified accountant, Mr Bannerman is an experienced corporate executive who has held senior positions in several companies with exposure to China during his lengthy career. He has also served on the boards of two investment trusts over the past 21 years, as a non-executive Director, Audit Chair and Chair. Mr Bannerman's knowledge and expertise will further strengthen the Board and he has already proved to be a valuable addition.

Stay Informed

The Company delivers email updates with regular news and views, as well as the latest performance. If you have not already signed up to receive these communications and you wish to do so, you can opt in via https://tinyurl.com/JCGI-Sign-Up or by scanning the QR code in the front of the Half Year Report.

Outlook

Despite the uncertain and fluid global macro environment, the future outlook for Chinese equities and for our portfolio appears to be improving. Chinese companies are beginning to reap the benefit of the Chinese government's commitment to developing world leading capabilities in innovative technology. After DeepSeek's AI technology breakthrough and President Xi's meeting with major Chinese entrepreneurs, confidence levels amongst Chinese corporates have risen. While the National People's Congress concluded with few surprises, the Chinese government focused on the Rmb2 trillion (£213 billion as at 31st March 2025) fiscal expansion relating to local government debt restructuring, equipment replacement programmes, and consumption support. Recent macro data releases confirm a recovery in domestic retail sales and travel, an improvement in secondary property sales in Tier 1 cities, and an acceleration in fixed asset investment. At the same time, President Trump's cancellation of USAID and his continued confusing pronouncements have given China the opportunity to enhance its position globally, particularly in the Developing World.

It seems likely for the foreseeable future that relations between the US and China will remain tense, particularly in relation to trade issues. The lack of clarity regarding the scope of US import tariffs only adds another challenge that our Portfolio Managers will have to tackle. Chinese companies had already responded to the introduction of tariffs during President Trump's first term of office by diversifying their markets away from the US and establishing production facilities outside China. The significant size and scope of the initial proposed US tariffs, however, caught exporters by surprise, and will inevitably impact their operations. That said, our Portfolio Managers are invested in nimble Chinese exporters with strong balance sheets, which should be well positioned to weather any future trade wars and the pro-business Chinese government may well provide additional stimulus to the domestic economy, given the challenges Chinese exporters are likely to face.

Drawing on expanded and enhanced research capabilities, our Portfolio Managers are adapting the portfolio to reflect the new realities that face them and the attractive opportunities offered by China's rapidly evolving corporate sector. While short-term volatility may persist, given the current geopolitical uncertainties, the Board shares the Portfolio Managers' optimism about the long-term prospects for the Chinese stock markets and the opportunities that will benefit the patient investor, and continues to work closely with them to ensure that the Company maintains its long track record of absolute gains and long-term outperformance.

Alexandra Mackesy

Chairman                                                                                                                                         2nd June 2025

INVESTMENT MANAGER'S REPORT

Introduction

During the six months ended 31st March 2025, the Company's net assets returned 4.2% (in sterling terms). This compares with the return of 10.4% by its benchmark, the MSCI China Index. However, the Company's long-term track record of outright gains and outperformance remains intact.

Setting the scene

The market upturn which began towards the end of the last financial year ended 30th September 2024 (FY24) gained momentum during the six months to end March 2025, although the ride was not entirely smooth. Two factors drove market gains over the period. The first was the ongoing positive impact of the very notable pivot in Chinese domestic policy implemented in September last year, when the authorities, including the Central Bank, the People's Bank of China (PBOC), the National Reform and Development Committee (the central government's economic planning committee), the Ministry of Housing and Urban-Rural Development, and the Ministry of Finance, announced a series of pro-growth stimulus policies. These measures demonstrated a level of coordination which was lacking in previous stimulus efforts. They included a more accommodative monetary stance and direct fiscal transfers from the central government to local governments and to consumers, to encourage spending on vehicles and consumer electronics and to support low-income earners.

The second catalyst for market gains over the review period came in late January 2025 when DeepSeek released its open-source large language model at superior cost-performance. The launch was a dramatic wake-up call to both Chinese investors and western developers of artificial intelligence (AI) tools, as it demonstrated China's unexpectedly rapid progress in this field, to the point that DeepSeek's products represent a significant challenge to OpenAI and its western rivals. DeepSeek's announcement also demonstrated the country's ability to make major technological advances without reliance on western know-how or components. As such, the launch of DeepSeek helped assuage some of the concerns around the US administration's expanded restrictions on the export of advanced semiconductor technologies to China and its intention to curb China's technological advancement and self sufficiency.

China's property market remained in a downturn during 2024, marked by declining construction and sales activity, as well as falling property prices. This slump weighed on GDP growth, squeezed local government fiscal revenue (which relies heavily on land sales), and dampened consumer confidence, as households grew cautious amid falling asset values. However, some stabilisation emerged after September, driven by meaningful policy loosening, including mortgage rate cuts and relaxed purchase restrictions. Separately, the banking sector faced stagnant profit growth during this period, pressured by narrowing net interest margins and higher provisions for bad debt linked to the property sector. Despite these challenges, the financial system showed no signs of acute distress, with systemic stability preserved through regulatory safeguards and ample liquidity.

Performance commentary

Gearing and sector allocation contributed positively, but was more than offset by stock selection, which resulted in the Company's underperformance compared with the MSCI China Index over the six months to end March 2025.

Not surprisingly given the buzz generated by DeepSeek, a couple of technology names were the main contributors to performance at the stock level. Kingdee is a software business whose AI-applications will be a beneficiary of DeepSeek's progress in this field, as will Alibaba, an internet retailer and provider of related cloud-based technological infrastructure and marketing services. Full Truck, a technology platform helping the trucking and logistics industry to operate more efficiently, has demonstrated its ability to add value for its customers and this is allowing it to monetise its platform. Chinese semiconductor businesses such as portfolio holdings Montage and Beijing Huafeng are benefitting from underlying growth in industrial demand. They are also increasing their market share thanks to import substitution efforts by their clients.

Within the consumer sector, we have been focusing our investments in companies capturing new consumer trends, that are, in our view, capable of doing well despite the economic environment. Some of these investments were key contributors to returns over the review period. For example, Guming runs retail outlets offering bubble tea and other beverages, while Bloks designs, makes and sells brick-based toys. We acquired positions in both these companies in their recent initial public offerings (IPOs). Both have demonstrated healthy growth and good share price performance since their flotations.

The favourable impact of the performance of these holdings was more than offset by several adverse influences on returns. Two of the most significant detractors were electric vehicle (EV) makers Xiaomi and BYD. We did not hold either of these names at the beginning of the review period, but both did well due to strong demand for EVs, good execution and the price competitiveness of their products. Xiaomi has also benefitted from a 'halo' effect, as the success of its EVs has generated great demand for its other product lines, including smartphones and household appliances. We missed the initial rally in Xiaomi in late 2024, as we underestimated the company's execution capability in its EV business, but we acquired a position early in 2025. We did not, however, add any exposure to BYD, as we remain concerned about fierce pricing competition in the mass market segment in which BYD competes.

Other detractors included Foxconn Industrial Internet, which manufactures communication network and cloud computing equipment, Zhongji Innolight, another tech company specialising in optical equipment, and a position in Taiwan Semiconductor Manufacturing Company (TSMC). All three companies are exposed to US data centres and broader US demand for tech components. The stocks all came under pressure due to concerns of a slowdown in US cloud capex especially after DeepSeek's announcement as well as challenges posted by US tariffs and general geopolitical concerns. Finally, our position in China Resources Gas, which connects gas to new residential properties, was hurt by the ongoing weakness in the Chinese housing market.

Performance attribution

For the six months ended 31st March 2025

Source: FactSet, JPMAM and Morningstar.

Performance attribution analyses how the Company achieved its recorded performance relative to its benchmark index.

^A     Alternative Performance Measure ('APM').

A glossary of terms and APMs is provided on pages 29 to 32 of the Half Year Report.

Transactions and sector allocation

We maintained our growth tilt over the review period, with recent acquisitions motivated by two main themes. Firstly, DeepSeek's launch has created many opportunities fuelled by the rapid penetration of AI into production processes and business practices, and we have added exposure accordingly. In addition to our exposure to Alibaba, we also purchased Kingsoft, an office software, cloud computing and electronic gaming company, and Kuaishou Technology, a live streaming and online market business. The other driver of recent acquisitions has been our ongoing interest in idiosyncratic growth opportunities, especially amongst consumer products. In addition to buying positions in Xiaomi, Gumings and Bloks, all mentioned above, we also acquired an exposure to Haidilao, a hotpot restaurant chain.

Of the disposals during the past six months, some were intended to protect the portfolio from the impact of US tariffs, by reducing exposure to Nvidia-related names. For example, we trimmed our holding in Foxconn and sold Zhongji Innolight. Elsewhere, we also sold our position in China Resources Sanjiu, a drug manufacturer, as its recent acquisitions had changed the investment thesis.

At the sectoral level, the Company's two most noteworthy overweight sectors at the end of the review period were IT and Industrials, unchanged from the end of FY24. We are also slightly overweight Consumer Discretionary, and our search for unique growth opportunities in this sector continues. The portfolio's largest underweights at end March 2025 were to Financials, Communications Services and Energy - positioning unchanged from end FY24. As previously discussed, our underweight position in Financials is mainly due to not owning the big five State-owned enterprise (SOE) banks, as we see few structural growth opportunities there. The underweight position in Communication Services primarily reflects the outperformance of Tencent which led to a +16% weighting in the benchmark, while our portfolio weighting is capped at 12.5% by risk guidelines. We had no holdings in Energy at the end of the period, as the sector remains dominated by carbon-intensive SOEs in the oil and coal industries, the governance of which is not very transparent and where we have little edge in making forecasts.

Gearing

Since 2024, we have an alternative, low cost way of increasing leverage when we need it in the form of CFDs. As market sentiment improved during the period under review, we used CFDs to increase our gearing levels. While the average gearing level during the six months ending 31st March 2025 was 6.5%, broadly in line with 6.7% during FY24, it ranged from 2.4% to 11.7%, ending the half year at 10.7%.

Outlook

The geopolitical developments that have unfolded over the past six months, especially the new US administration's aggressive tariff policies, have fuelled a major escalation in tensions between China and the US. Trade negotiations between the two countries have commenced but the situation remains fluid. The uncertainty generated by the lack of clarity regarding the scope of possible future tariffs, however, has already undermined consumer and business confidence in the US and other developed economies, and a slowdown in growth appears inevitable, while tariff increases, if imposed, will drive inflation higher.

However, despite this unhelpful backdrop, we still see reasons for cautious optimism about the outlook for Chinese economy, Chinese equities and for our portfolio, over the remainder of this year and well beyond. For one, the escalation of trade tensions between China and the US was not unexpected. The experience of the first Trump administration (2017-2020) were a dress rehearsal for his second term, and Chinese companies have been preparing themselves over the intervening years by diversifying their end markets and supply chains away from reliance on the US. Chinese companies are therefore already relatively well positioned to weather a full-blown trade war, should one come to pass.

We draw further reassurance from the recent, more pro-growth stance of the Chinese government, which suggests that it will backstop Chinese domestic consumption with further stimulus if tariffs do have an adverse impact on activity. The regulatory environment has also become more pro-business following a meeting between President Xi and private entrepreneurs in January this year, which resulted in some positive signals regarding private enterprise and innovation.

It is important to stress the significance of DeepSeek's recent AI breakthrough, which will support the Chinese economy for many years to come. Business confidence, especially in tech sectors and other companies set to benefit from the wider application of AI, has already been buoyed by high expectations about the productivity gains and cost savings this technology will deliver.

China will also benefit from other structural changes playing out across the economy. One of the potentially most meaningful change for equity investors is corporate reform. As we discussed in the FY24 Annual Report, the government and regulators are encouraging businesses to improve their capital allocation and shareholder returns via higher dividends and share buybacks. These efforts have been greatly welcomed by domestic and international investors, as they view dividends to be a more predictable source of return. Corporate reform is likely to remain a strong positive for the market as companies adopt better governance practices.

Recent months have seen headwinds from the property market ease significantly. Excess inventory levels have declined, supported by targeted government measures such as direct funding to clear unsold homes, further reductions in mortgage rates, and relaxed purchase rules in key cities. These interventions are expected to mitigate the drag on consumer sentiment and support a gradual recovery in housing demand. While banks continue to manage non-performing loans tied to the property sector, systemic risks remain contained, with no major capital shortfalls observed. The Ministry of Finance's recent recapitalisation plan for state-owned banks further strengthens their capacity to absorb losses, reinforcing financial stability. Together, these developments underscore Beijing's commitment to addressing structural risks in the property sector while fostering a more balanced, consumption-driven economic recovery.

The portfolio is positioned to benefit from China's evolving regulatory landscape, which now prioritises a pro-entrepreneur and pro-equities stance following strategic interventions to stabilise markets and restore confidence in the tech sector. While short-term volatility may persist, especially under the current geopolitical uncertainties, the long-term outlook is bolstered by resilient entrepreneurial innovation, particularly in technology-driven sectors like semiconductors, software, EVs and robotics. Combined with policymakers' renewed balance between fostering growth and modulating excess capacity, these dynamics support a constructive trajectory for growth-oriented equities in the foreseeable future.

We acknowledge past missteps in stock selection, particularly during periods of heightened market volatility and regulatory shifts, which led to disappointing performance. These missteps have underscored the importance of dynamic risk assessment and deeper fundamental analysis. In response to recent underperformance, we have strengthened and expanded our research capabilities by recruiting additional experienced analysts and have refined our investment framework and processes. We have been adapting the portfolio to reflect new realities and gain exposure to unique growth opportunities, particularly companies that will be beneficiaries of technological innovation, carbon neutrality and consumption demand. We are comfortable that our holdings are either concentrated in domestically focussed businesses with immunity from tariffs, or in exporters that have strong pricing power and well-diversified supply chains and are thus well-positioned to weather the challenges presented by higher tariffs. We will continue to seek out interesting, attractively valued growth opportunities as they evolve, to ensure that your Company maintains its long track record of outright gains and outperformance over the long term.

We thank you for your ongoing support.

Rebecca Jiang

Howard Wang

Li Tan

Investment Team                                                                                                                             2nd June 2025

INTERIM MANAGEMENT REPORT

The Company is required to make the following disclosures in its half year report:

Principal and Emerging Risks and Uncertainties

Supported by a detailed risk matrix, the Board has identified the principal risks and uncertainties which face the Company. These risks fall into the following broad categories: geopolitical; investment underperformance; investment strategy; loss of Investment Team or Investment Manager; share price discount; corporate governance; shareholder relations; financial; cybercrime; fraud/other operating failures or weaknesses; inability to use gearing; use of CFDs; legal and regulatory; risk of misrepresentation of ESG credentials; global disruption including pandemics; ESG risk; and climate change. While these categories have not changed from those reported in the Strategic Report within the Annual Report and Financial Statements for the year ended 30th September 2024, the Board considers that some uncertainties within these categories have increased in risk since the year end and are monitoring them carefully. These include the continuing conflicts between Russia and the Ukraine and in the Middle East, heightened tensions between the US and China, and between India and Pakistan, the introduction of trade-related sanctions by both the US and China, and fragile consumer demand in China. Last year, the Board also identified the following emerging risks: social unrest within China; and impact of reshoring and tariffs.

Related Parties Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company during the period.

Going Concern

Having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections, the Directors believe that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and, more specifically, that there are no material uncertainties pertaining to the Company that would prevent its ability to continue in such operational existence for at least 12 months from the date of the approval of this half yearly financial report. In reaching that view, the Directors have considered the impact of economic conditions in China, risks relating to the Chinese property market, the financial stability of provincial governments and continuing geopolitical tensions between China and the US on the Company's financial, operational position and market conditions. They have also considered the wider implications of the continuing conflicts between Russia and the Ukraine and in the Middle East, and heightened tensions between the US and China, and between India and Pakistan. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the accounts.

Directors' Responsibilities

The Board of Directors confirms that, to the best of its knowledge:

(i) the condensed set of Financial Statements contained within the half yearly financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company and of the assets, liabilities, financial position and net return of the Company, as at 31st March 2025, as required by the UK Listing Authority Disclosure and Transparency Rule ('DTR') 4.2.4R; and

(ii)  the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the UK Listing Authority Disclosure and Transparency Rules.

In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:

•   select suitable accounting policies and then apply them consistently;

•   make judgements and accounting estimates that are reasonable and prudent;

•   state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•   prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;

and the Directors confirm that they have done so.

For and on behalf of the Board

Alexandra Mackesy

Chairman                                                                                                                                         2nd June 2025

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

¹     Income from derivative financial instruments is in respect of long CFDs.

²     Includes income from securities lending.

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.

The net return/(loss) after taxation represents the return/(loss) for the period and also the total comprehensive income.

CONDENSED STATEMENT OF CHANGES IN EQUITY

¹     Created during the year ended 30th September 1999, following a cancellation of the share premium account.

²     These reserves form the distributable reserves of the Company and may be used to fund distribution to investors.

³     The Company undertook an Asset Reunification Program to reunite inactive shareholders with their shares and unclaimed dividends. Pursuant to the Company's Articles of Association, the Company has exercised its right to reclaim the shares of shareholders whom the Company, through its previous Registrar, has been unable to locate for a period of 12 years or more. These forfeited shares were sold in the open market by the Registrar and the proceeds, net of costs, were returned to the Company. In addition, any unclaimed dividends older than 12 years from the date of payment of such dividends were also forfeited and returned to the Company.

CONDENSED STATEMENT OF FINANCIAL POSITION

¹     Derivative financial assets and liabilities represent the unrealised gains and losses on the market exposure to Contracts for Differences (CFDs).

²     As at 31st March 2025, £3.9m (31st March 2024: £9.2m; 30th September 2024: £nil) was drawn down from the loan facility.

CONDENSED STATEMENT OF CASH FLOWS

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

1.  Financial Statements

The information contained within the condensed financial statements in this half year report has not been audited or reviewed by the Company's auditors.

The figures and financial information for the year ended 30th September 2024 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.

2.  Accounting policies

The financial statements are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP') including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the 'SORP') issued by the Association of Investment Companies in July 2022.

FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015 has been applied in preparing this condensed set of financial statements for the six months ended 31st March 2025.

All of the Company's operations are of a continuing nature.

During the period ended 31st March 2025, the Company used Contracts for Difference (CFDs) as part of its derivative transactions. Under FRS 102, these derivatives are measured at fair value both initially and subsequently. The fair value of CFDs is determined by the difference between the strike price and the value of the underlying shares, as per the investment accounting policy.

Income from CFDs is recognised as derivative income in the revenue column of the Statement of Comprehensive Income, while interest paid on CFDs is recognised as a finance cost, in accordance with the allocation policy of the Company. Gains and losses from CFDs are recognised in the capital column of the Statement of Comprehensive Income. Open CFD positions at the period-end are shown at fair value in the Statement of Financial Position under current assets or liabilities

The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financial statements for the year ended 30th September 2024.

3.  Return/(loss) per share

4.  Dividends paid

A third quarterly dividend of 2.73p has been declared for payment on 3rd June 2025 for the financial year ending 30th September 2025.

Dividend payments in excess of the revenue amount will be paid out of the Company's distributable capital reserves.

5. Net asset value per share

6.  Fair valuation of investments

The fair value hierarchy disclosures required by FRS 102 are given below:

¹     Comprises the fair value of derivative financial instruments (long CFDs).

²     Participatory Notes. 31st March 2024: (Shanghai Liangxin Electrical, Qingdao Haier Biomedical, Amoy Diagnostics).

7.  Analysis of changes in net (debt)/cash

¹     JPMorgan USD Liquidity Fund, a AAA rated money market fund which seeks to achieve a return in line with prevailing money market rates whilst aiming to preserve capital consistent with such rates and to maintain a high degree of liquidity.

JPMORGAN FUNDS LIMITED

2nd June 2025

For further information, please contact:

Lucy Dina

For and on behalf of

JPMorgan Funds Limited

Telephone: 0800 20 40 20 or or +44 1268 44 44 70

email: jpmam.investment.trusts@jpmorgan.com

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.

ENDS

A copy of the Half Year Report will be submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The 2025 Half Year Report will also shortly be available on the Company's website at www.jpmchinagrowthandincome.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.