Financial Performance - For the year ended December 31, 2021, the dealing NAV of the product increased by 33.05%, while the benchmark index decreased by 23.30%[9]. - Total net income for the year ended December 31, 2021, was HKD 18,032,438, compared to a loss of HKD 365,410 in 2020, indicating a significant recovery[52]. - The total comprehensive income for the year was HKD 16,100,951, a notable improvement from a loss of HKD 2,953,593 in the previous year[52]. - The net gain on investments and derivative financial instruments for 2021 was HKD 18,013,542, compared to a net loss of HKD 801,843 in 2020[121]. - The fund generated net cash from operating activities of HKD 87,428,180 in 2021, a substantial increase compared to HKD 667,201 in 2020[59]. Investment Strategy - The investment objective of the Sub-Fund is to provide results that closely correspond to two times the inverse of the daily performance of the Hang Seng China Enterprises Index[6]. - The Sub-Fund has undergone fifty-eight monthly futures rolls since inception, maintaining its futures-based replication strategy[12]. - The Manager adopts a futures-based replication strategy to achieve the investment objective[66]. - The Sub-Fund's investments and derivative financial instruments were concentrated in Hong Kong listed investment funds and futures, with a fair value of HKD 8,713,784 as of December 31, 2021[147]. - The Sub-Fund's investments in futures contracts are subject to daily marking to market, which can result in substantial losses due to high leverage[190]. Asset Management - As of December 31, 2021, the Net Asset Value (NAV) per unit of the CSOP Hang Seng China Enterprises Index Daily (-2x) Inverse Product was HKD 5.7598, with 6,400,000 units outstanding, resulting in total assets under management of approximately HKD 36.9 million[8]. - The net assets attributable to unitholders decreased to HKD 36,809,331 at the end of 2021 from HKD 107,059,879 at the end of 2020, reflecting a substantial reduction in total assets[47][56]. - The number of units in issue at the end of 2021 was 6,400,000, a decrease from 24,800,000 at the end of 2020, indicating a reduction in investor participation[56]. - The Sub-Fund's total assets amounted to HKD 37,903,492, a decrease from HKD 114,199,864 in 2020[150][154]. - The Sub-Fund's maximum exposure to credit risk as of December 31, 2021, is the carrying amount of financial assets, which is HKD 9,454,955 for investments in listed investment funds[169]. Expenses and Fees - The management fee for the year was HKD 1,083,059, down from HKD 1,534,620 in 2020, reflecting cost management efforts[52]. - The fund incurred total operating expenses of HKD 1,931,487 in 2021, down from HKD 2,588,183 in 2020, showing improved operational efficiency[52]. - The management fee increased from 0.99% to 1.5% per annum of the net asset value effective from June 25, 2020[125]. - The Sub-Fund incurred transaction costs of HKD 26,505,979 in 2021, which accounted for 10.59% of the total aggregate value of transactions during the year[134]. Liquidity and Risk Management - The Sub-Fund's liquidity risk is managed by investing in securities expected to be liquidated within 7 days or less[175]. - As of December 31, 2021, the Sub-Fund had contractual cash outflows totaling HKD 1,094,161, with HKD 815,261 due within 1 month[172]. - The total interest sensitivity gap for the Sub-Fund as of December 31, 2021, was HKD 28,428,003, indicating a substantial amount of assets sensitive to interest rate changes[150]. - The Sub-Fund's exposure to interest rate risk is highlighted by a potential increase or decrease in net assets attributable to unitholders of HKD 28,428 (2020: HKD 48,227) if interest rates changed by 10 basis points[152]. Changes in Investment Holdings - The fund's investments decreased significantly from HKD 65,971,079 in 2020 to HKD 9,454,955 in 2021, indicating a major shift in investment strategy[48]. - The Sub-Fund did not invest in debt securities as of December 31, 2021, compared to HKD 51,497,964 in 2020, indicating a shift in investment strategy[146][154]. - The Sub-Fund's investments in HK treasury bills were nil as of December 31, 2021, compared to HKD 51,497,964 in 2020, reflecting a significant reduction in exposure to government bonds[154][164]. Fund Structure and Governance - The Sub-Fund's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS)[70]. - The Sub-Fund issues redeemable units classified as equity, which entitle holders to a pro-rata share of net asset value[101]. - The Manager and Trustee confirmed that the Sub-Fund was managed in accordance with the Trust Deed for the year ended December 31, 2021[14]. - The Sub-Fund's management considers the probability of default for counterparties to be close to zero, resulting in no loss allowance recognized for expected credit losses[168].

Financial Performance - The total comprehensive loss for the period ended June 30, 2021, was HKD 10,462,023, compared to a total comprehensive income of HKD 19,312,685 for the same period in 2020[20]. - The net assets attributable to unitholders decreased from HKD 107,059,879 at the beginning of the period to HKD 72,431,340 at the end of the period[22]. - The product experienced a net cash used in financing activities of HKD 24,166,516 for the period ended June 30, 2021, compared to HKD 13,931,641 for the same period in 2020[26]. - The dealing NAV of the product decreased by 8.85%, while the underlying index decreased by 0.7%[10]. - The Sub-Fund experienced a decrease in net asset value from HKD 107,352,667 at the end of December 2020 to HKD 72,602,860 by June 30, 2021[39]. - As of June 30, 2021, the net asset value per unit of the Sub-Fund decreased by 8.81%, compared to a decrease of 16.64% as of December 31, 2020[44]. Asset Management - As of June 30, 2021, the Net Asset Value (NAV) per unit of the CSOP Hang Seng China Enterprises Index Daily (-2x) Inverse Product was HKD 3.9460, with 18,400,000 units outstanding, resulting in total assets under management of approximately HKD 72.6 million[9]. - The investment portfolio value as of June 30, 2021, was HKD 32,516,116, down from HKD 65,971,079 at the end of 2020[16]. - The number of units in issue decreased from 24,800,000 to 18,400,000 during the reporting period[17]. - The cash and cash equivalents at the end of the period were HKD 24,718,370, an increase from HKD 20,444,157 at the beginning of the period[26]. - As of June 30, 2021, the net assets attributable to unitholders amounted to HKD 72,431,340, with total investments and derivative financial instruments valued at HKD 32,779,916, representing 45.26% of net assets[29]. Investment Portfolio - The investment portfolio included 21.42% in listed investment funds and 23.47% in quoted debt securities as of June 30, 2021[31]. - Total debt securities in the portfolio were valued at HKD 17,000,116, accounting for 23.47% of the total investments[31]. - The Sub-Fund's total investments and derivative financial instruments at cost were HKD 32,515,725[29]. - The financial derivative instruments held included a short position in HSCEI futures with a fair value of HKD 263,800 as of June 30, 2021[37]. - The Sub-Fund made additions to its investment portfolio, including HKD 4,500,000 in Hong Kong Treasury Bills on June 28, 2021[35]. - The total investments and derivative financial instruments represented 45.26% of net assets, while other net assets accounted for 54.74%[29]. Market Activity - The average daily trading value of the product was HKD 1.9 million in June 2021, indicating strong market interest[12]. - The highest net asset value per unit for the financial period ended June 30, 2021, was HKD 4.3222, while the lowest was HKD 3.2615[39]. - The Hang Seng China Enterprises Index decreased by 0.7% for the period ended June 30, 2021, following a decrease of 3.85% for the period ended December 31, 2020[44]. Management Fees - The product's management fee for the period was HKD 597,403, a decrease from HKD 792,512 in the same period of the previous year[20]. Securities Holdings - The CSOP Hong Kong Dollar Money Market ETF-Unlisted Share accounted for 21.42% of net assets as of June 30, 2021, up from 13.52% for the CSOP Hong Kong Dollar Money Market ETF as of December 31, 2020[43]. - There were no government securities that individually accounted for more than 10% but less than 30% of the net asset value of the Sub-Fund as of June 30, 2021[43]. - The Sub-Fund had one security that accounted for more than 10% but less than 30% of its net asset value as of June 30, 2021[42].

CSOP LEVERAGED AND INVERSE SERIES (An umbrella unit trust established in Hong Kong) CSOP HANG SENG CHINA ENTERPRISES INDEX DAILY (-2X) INVERSE PRODUCT (Stock Code: 07588) (A sub-fund of CSOP Leveraged and Inverse Series) Reports and Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2020 CSOP HANG SENG CHINA ENTERPRISES INDEX DAILY (-2X) INVERSE PRODUCT (A SUB-FUND OF CSOP LEVERAGED AND INVERSE SERIES) CONTENTS Page Report of the Manager to the Unitholders 1 - 2 Report of the Trustee to the Unitholders 3 S ...

CSOP LEVERAGED AND INVERSE SERIES (An umbrella unit trust established in Hong Kong) CSOP HANG SENG CHINA ENTERPRISES INDEX DAILY (-2X) INVERSE PRODUCT (Stock Code: 07588) (A sub-fund of CSOP Leveraged and Inverse Series) Unaudited Semi-Annual Report FOR THE PERIOD ENDED 30 JUNE 2020 CSOP HANG SENG CHINA ENTERPRISES INDEX DAILY (-2X) INVERSE PRODUCT (A SUB-FUND OF CSOP LEVERAGED AND INVERSE SERIES) Page Report of the Manager to the Unitholders 1 - 2 Condensed Statement of Financial Position 3 Condensed State ...

Financial Performance - As of December 31, 2019, the Net Asset Value (NAV) per unit of CSOP Hang Seng China Enterprises Index Daily (-2x) Inverse Product was HKD 5.2069, with 19,200,000 units outstanding, resulting in total assets under management of approximately HKD 100.0 million[9]. - For the period from January 1, 2019, to June 24, 2019, the NAV performance was -10.03%, while the Index performed at 8.18%[10]. - From June 25, 2019, to December 31, 2019, the NAV performance was -11.55%, compared to the Index's performance of 3.96%[10]. - Total assets as of December 31, 2019, amounted to HKD 102,410,186, a decrease from HKD 133,346,201 in 2018[46]. - Net assets attributable to unitholders decreased to HKD 99,435,421 from HKD 131,929,995 in the previous year, reflecting a significant decline[52]. - The total comprehensive loss for the year ended December 31, 2019, was HKD 21,576,776, compared to a comprehensive income of HKD 39,556,498 in 2018[49]. - The total net loss/income for the year was HKD (18,183,163), a stark contrast to the previous year's income of HKD 42,901,108[49]. - The Sub-Fund reported a net loss on investments and derivative financial instruments of HKD 19,072,841 for the year ended December 31, 2019, compared to a net gain of HKD 42,257,824 in 2018[114]. Investment Strategy and Holdings - The investment objective of the Sub-Fund is to provide results that closely correspond to two times the inverse (-2x) of the daily performance of the Hang Seng China Enterprises Index[6]. - The Sub-Fund has undergone thirty-four monthly futures rolls since inception, utilizing a futures-based replication strategy to track the Index[13]. - The Sub-Fund's investments and derivative financial instruments as of December 31, 2019, included an investment fund valued at HKD 22,510,426, debt securities at HKD 49,964,322, and futures contracts in short positions at HKD (2,250,637)[29]. - The Sub-Fund's investment strategy is subject to market risks, including market price risk, interest rate risk, and liquidity risk, which may affect its performance[126]. - The Sub-Fund's exposure to interest rate risk includes investments in interest-bearing debt securities totaling HKD 49,964,322 as of December 31, 2019, up from HKD 23,980,800 in 2018[142]. - The Sub-Fund's investments in listed derivatives were valued at HKD 72,474,748 as of December 31, 2019, representing 72.89% of net asset value[130]. - The Sub-Fund's maximum exposure to loss from its interests in CSOP Hong Kong Dollar Money Market ETF is equal to the total fair value of its investments in the ETF[179]. Cash Flow and Liquidity - For the year ended 31 December 2019, the Sub-Fund had net cash used in operating activities of HKD 46,803,236, compared to HKD 53,399,444 generated in the previous year[55]. - The Sub-Fund's proceeds from the sale of investments amounted to HKD 192,573,591, a decrease from HKD 257,107,265 in the prior year[55]. - The total payments for the purchase of investments were HKD 228,724,535, up from HKD 197,052,631 in the previous year[55]. - Cash and cash equivalents at the end of the year decreased to HKD 9,198,905 from HKD 61,818,952 at the beginning of the year[55]. - The amount due from participating dealers was HKD 5,100,987, indicating liquidity management challenges[46]. - The Sub-Fund's liquidity risk management strategy includes investing in securities expected to be liquidated within 7 days or less[157]. Management and Fees - The Manager and Trustee confirm that the Sub-Fund has been managed in accordance with the Trust Deed for the year ended December 31, 2019[15]. - The management fee payable increased to HKD 130,498 from HKD 116,292 in the previous year[46]. - The Sub-Fund's management fee paid was HKD 2,121,255, a decrease from HKD 2,329,258 in the previous year[55]. - The management fee for the Sub-Fund increased from 0.99% to 1.5% per annum as of June 25, 2019[119]. Unit and Shareholder Information - The number of units in issue decreased from 170,400,000 at the beginning of 2019 to 19,200,000 at the end of the year, with 55,200,000 units redeemed during the year[111]. - The Sub-Fund had two unitholders holding more than 10% of its units, representing a total of 30.51% of the Sub-Fund's units as of December 31, 2019[156]. - The Sub-Fund's capital is represented by redeemable units outstanding, with the objective to provide investment results that correspond to the performance of the respective index[170]. Regulatory Compliance - The financial statements were approved by the Trustee and the Manager on April 27, 2020, ensuring compliance with relevant regulations[46]. - There were no soft commission arrangements in place during the years ended December 31, 2019, and December 31, 2018[196]. Market and Economic Conditions - If the Hang Seng China Enterprises Index were to increase or decrease by 10%, the operating profit for the year would change by approximately HKD 9,725,058 in 2019 and HKD 5,104,129 in 2018[132]. - The portfolio weighted average modified duration of the Sub-Fund increased to 0.11 in 2019 from 0.03 in 2018, indicating a higher sensitivity to interest rate changes[142].

Financial Performance - The total comprehensive income for the period ended June 30, 2019, was a net loss of HKD 16,969,493, compared to a gain of HKD 25,411,088 for the same period in 2018[18]. - The net asset value per unit decreased by 9.90% during the period ended June 30, 2019, compared to an increase of 7.96% for the year ended December 31, 2018[34]. - The Hang Seng China Enterprises Index increased by 8.18% from January 1, 2019, to June 24, 2019, following a decrease of 13.53% in 2018[34]. - The total operating expenses for the period were HKD 1,474,365, a decrease from HKD 2,810,978 in the same period of the previous year[16]. Assets and Investments - As of June 30, 2019, the Net Asset Value (NAV) per unit of the CSOP Hang Seng China Enterprises Index Daily (-2x) Inverse Product was HKD 5.7264, with 57,600,000 units outstanding, resulting in total assets under management of approximately HKD 329.8 million[8]. - The total assets as of June 30, 2019, were HKD 329,755,101, compared to HKD 133,346,201 as of December 31, 2018[13]. - The product experienced a net increase in cash and cash equivalents of HKD 100,039,918 during the period, bringing the total to HKD 161,858,870 at the end of June 2019[22]. - The investment portfolio included HKD 107,839,221 in investments as of June 30, 2019, compared to HKD 54,167,001 at the end of 2018[13]. - The total investments and derivative financial instruments were valued at HKD 107,700,875, accounting for 32.72% of net assets[26]. - The investment in Hong Kong government quoted debt securities totaled HKD 41,956,300, representing 12.75% of net assets[26]. Unit and Fund Activity - The product issued new units resulting in proceeds of HKD 313,548,404, while payments on redemption of units totaled HKD 99,347,260[20]. - The total listed fund increased from 30,000 units at the beginning of the year to 65,000 units by June 30, 2019, with additions of 58,000 units[28]. - As of June 30, 2019, the net assets attributable to unitholders amounted to HKD 329,161,646, representing a 100% total[26]. Market Activity - The average daily turnover for the product in June 2019 was HKD 7.7 million, indicating strong investor interest[10]. - The highest net asset value per unit for the financial period ended June 30, 2019, was HKD 6.5686, while the lowest was HKD 5.3924[30]. - The CSOP Hong Kong Dollar Money Market ETF held a fair value of HKD 65,882,921, which is 20.01% of net assets[33]. - The CSOP Hong Kong Dollar Money Market ETF's fair value increased from HKD 30,186,201 (22.88% of net assets) at the end of 2018 to HKD 65,882,921 by June 30, 2019[33]. Fees and Expenses - The management fee for the period was HKD 950,481, down from HKD 1,192,240 in the previous year[16]. - The total futures contracts recorded a loss of HKD 138,346, accounting for -0.04% of net assets[26].