2023-04-28-港交所-易方达Ａ５０_易方达Ａ５０－Ｒ_2022年度报告_40页_2mb

E Fund (HK) MSCI China A50 Connect ETF 2022 Annual Report Summary

Core Content

The E Fund (HK) MSCI China A50 Connect ETF is a sub-fund of the E Fund ETFs Trust, which is governed by its Trust Deed dated 25th July 2012, as amended. The ETF was launched on 14th December 2021 and is listed on the Stock Exchange of Hong Kong Limited (SEHK) under the stock codes 83111 (RMB Counter) and 03111 (HKD Counter).

The ETF aims to provide investment returns that closely correspond to the performance of the MSCI China A50 Connect Index, before deduction of fees and expenses. The index is calculated and published by MSCI Inc. and represents the performance of the top 50 large-cap China A shares using a sector-neutral approach.

Main Points

Fund Performance

• Net Asset Value (NAV) per unit as of 31st December 2022: RMB 2.0417
• Total size of the fund: Approximately RMB 57.17 million
• Outstanding units: 28,000,000 units
• Performance Overview (NAV-to-NAV return, net return with dividend reinvested):
  • Since Launch: -21.5%
  • YTD (Year to Date): -19.2%
  • 1 Month: 1.9%
  • 3 Months: 1.2%
  • 6 Months: -13.9%
  • 1 Year: -19.2%
• Index Performance (Net Total Return):
  • Since Launch: -21.1%
  • YTD: -18.9%
  • 1 Month: 2.0%
  • 3 Months: 1.3%
  • 6 Months: -13.7%
  • 1 Year: -18.9%

Key Performance Notes

• The index transitioned from Price Return to Net Total Return on 12th August 2022, with the Bloomberg ticker changing from MXCNA50C to MXA50CNC.
• Past performance is not indicative of future results.
• The performance figures are based on calendar period end and NAV-to-NAV with dividends reinvested.

Fund Activities

• Average daily trading volume (as reported by Bloomberg): RMB 3.361 million
• The fund holds 50 constituents as of 31st December 2022, in line with the MSCI China A50 Connect Index.

Key Information

Management and Administration

• Manager: E Fund Management (Hong Kong) Co., Limited
• Trustee: HSBC Institutional Trust Services (Asia) Limited
• Custodian: The Hongkong and Shanghai Banking Corporation Limited (HK) and HSBC Bank (China) Company Limited (PRC)
• Service Agent/Conversion Agent: HK Conversion Agency Services Limited
• Listing Agent: GF Capital (Hong Kong) Limited
• Legal Counsel: Simmons & Simmons
• Auditor: PricewaterhouseCoopers

Directors of the Manager (as of 31st December 2022)

• MA Jun
• Chen Rong
• Lou Lizhou
• Wu Xinrong
• Yang Dongmei
• Huang Gaohui
• Fan Yue

Financial Statements Overview

Statement of Financial Position (As at 31st December 2022)

• Total Assets: RMB 57,179,282
  • Investments: RMB 56,736,572
  • Cash and Cash Equivalents: RMB 442,709
• Total Liabilities: RMB 12,289
  • Management Fee Payable: RMB 9,271
  • Other Accounts Payable: RMB 3,018
• Net Assets Attributable to Unitholders: RMB 57,166,993

Statement of Comprehensive Income (2021–2022)

• Total Net Loss: RMB -103,380,653
• Total Operating Loss: RMB -106,931,168
• Taxation Paid: RMB -827,839

Statement of Changes in Net Assets Attributable to Unitholders

• Net Increase from Unit Transactions: RMB 164,926,000
• Net Assets Attributable to Unitholders at the End of the Period: RMB 57,166,993
• Units in Issue at the End of the Period: 28,000,000 units

Statement of Cash Flows

• Net Cash Used in Operating Activities: RMB -164,483,291
• Net Cash Generated from Financing Activities: RMB 164,926,000
• Increase in Cash and Cash Equivalents: RMB 442,709

Key Audit Matters

• Existence and Valuation of Investments:
  • The Sub-Fund’s investments are mainly listed equities valued at RMB 56,736,572.
  • The auditor tested the existence and valuation by obtaining direct confirmations from the custodian and comparing internal pricing with external pricing sources.
  • No material exceptions were found during testing.

Auditor's Responsibilities and Opinion

• The auditor, PricewaterhouseCoopers, issued an unqualified opinion, stating that the financial statements give a true and fair view of the Sub-Fund’s financial position and performance in accordance with International Financial Reporting Standards (IFRSs).
• The auditor confirmed that the financial statements were properly prepared in compliance with the Trust Deed and Appendix E of the SFC Code.

Additional Notes

• The fund uses a full replication strategy, investing directly in the index constituents with the same weightings.
• QFII and RQFII are required for foreign investors to participate in the PRC securities market.
• The report is not reviewed or authorized by the SFC and is exempt from pre-vetting.

Summary of Key Financial Figures

Conclusion

The E Fund (HK) MSCI China A50 Connect ETF has been operational since 14th December 2021 and has maintained a track record that aligns with the MSCI China A50 Connect Index, with a transition to Net Total Return as of 12th August 2022. The fund has a net asset value of RMB 2.0417 per unit as of 31st December 2022, and the financial statements have been audited and approved by the Trustee and Manager. The fund is managed in accordance with the Trust Deed, and its performance and activities are reported in detail.