INTERIM FINANCIAL STATEMENTS MIRAE ASSET HORIZONS EXCHANGE TRADED FUNDS SERIES MIRAE ASSET HORIZONS MSCI CHINA ETF MIRAE ASSET HORIZONS HANG SENG HIGH DIVIDEND YIELD ETF MIRAE ASSET HORIZONS CSI 300 ETF FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019 (SUB-FUNDS OF MIRAE ASSET HORIZONS EXCHANGE TRADED FUNDS SERIES) MIRAE ASSET HORIZONS EXCHANGE TRADED FUNDS SERIES Unaudited Condensed Interim Financial Statements CONTENTS | | Page | | --- | --- | | Interim financial statements | | | Statement of net assets (Unaudi ...

Financial Performance - As of September 30, 2019, the total assets for Mirae Asset Horizons MSCI China ETF were HK$1,074,530,338, a decrease from HK$1,762,540,297 as of March 31, 2019[5]. - For the six months ended September 30, 2019, the dividend income for Mirae Asset Horizons MSCI China ETF was HK$27,505,096, down 54.3% from HK$60,114,286 in the same period of 2018[6]. - The net loss on financial assets at fair value through profit or loss for Mirae Asset Horizons MSCI China ETF was HK$142,305,039, compared to a loss of HK$415,667,166 in the previous year[6]. - The profit after tax and total comprehensive income for Mirae Asset Horizons MSCI China ETF was a loss of HK$118,812,708, compared to a loss of HK$366,414,978 in the previous year[6]. - The operating loss for Mirae Asset Horizons MSCI China ETF was HK$116,750,098 for the six months ended September 30, 2019[6]. - For the six months ended 30 September 2019, Mirae Asset Horizons MSCI China ETF reported a loss before tax of HK$116,750,155, an improvement from a loss of HK$361,902,010 in the same period of 2018[9]. - The cash generated from operations for the MSCI China ETF was HK$557,713,637, compared to HK$1,555,439,501 for the same period in 2018, indicating a decrease of approximately 64.1%[9]. - The net cash flows generated from operating activities for the MSCI China ETF were HK$581,361,916, down from HK$1,607,807,771 in the previous year, reflecting a decline of about 63.8%[9]. - The Hang Seng High Dividend Yield ETF experienced a loss before tax of HK$19,861,794, compared to a loss of HK$9,946,423 in the prior year, representing an increase in losses of approximately 99.3%[11]. - The total expenses for Hang Seng High Dividend Yield ETF for the six months ended 30 September 2019 amounted to HK$230,742, an increase of 4.5% from HK$221,827 in the same period of 2018[108]. Asset and Liability Overview - The net assets attributable to unitholders for Mirae Asset Horizons MSCI China ETF decreased to HK$1,056,215,828 from HK$1,755,770,208 at the beginning of the period[7]. - The total liabilities for Mirae Asset Horizons MSCI China ETF were HK$18,314,510, an increase from HK$6,770,089 as of March 31, 2019[5]. - The number of units in issue for Mirae Asset Horizons MSCI China ETF was 34,800,000 as of September 30, 2019, down from 52,800,000[5]. - As of 30 September 2019, the cash and cash equivalents for the MSCI China ETF stood at HK$8,903,127, a decrease from HK$16,157,611 at the beginning of the period[9]. - The total cash and cash equivalents for the Hang Seng High Dividend Yield ETF at the end of the period were HK$561,964, down from HK$2,012,078 at the beginning of the period, indicating a decrease of approximately 72.0%[11]. Investment Portfolio - As of 30 September 2019, Alibaba Group Holding Limited accounted for 13.77% of MSCI China ETF's net asset value, while Tencent Holdings Ltd. accounted for 13.93%[130]. - The investment portfolio includes significant holdings in various sectors, with notable investments in technology and finance[140]. - The fair value of the total investments is aligned with the tracked indices, ensuring a strategic investment approach[136]. - The MSCI China ETF holds a total of HK$1,049,000,000 in listed equities as of September 30, 2019, with a significant allocation to the Industrial and Commercial Bank of China, representing 2.53% of net assets[143]. - The ETF has a diverse portfolio with over 200 listed equities, reflecting a broad exposure to the Chinese market[144]. - The fair value of the holdings in the technology sector, including companies like Meituan Dianping and NetEase, exceeds HK$18 billion, highlighting the sector's importance[144]. - The ETF's allocation to healthcare stocks, such as Jiangsu Hengrui Medicine Co, is approximately HK$1.37 billion, representing a strategic focus on this growing sector[144]. - The fund's exposure to consumer discretionary stocks, including Li Ning Co Ltd, is valued at HK$3.57 billion, indicating a bullish outlook on consumer spending in China[144]. Management and Governance - Management has assessed the Sub-Funds' ability to continue as a going concern and is satisfied that they have the resources to continue in business for the foreseeable future[25]. - The Sub-Funds have adopted IFRS 9 Financial Instruments, impacting the classification and measurement of financial assets and liabilities[27]. - The Manager is identified as the chief operating decision-maker responsible for allocating resources and assessing performance of the operating segments[67]. - Mirae Asset Global Investments (Hong Kong) Limited is the manager of the ETFs[189]. - Cititrust Limited serves as the trustee for the funds[189]. - Ernst & Young is the appointed auditor for the management[189]. - The funds are administered from Three Pacific Place, Hong Kong[189]. - The legal adviser to the manager is Simmons & Simmons[189]. Changes in Holdings - The total closing holdings for the MSCI China ETF as of September 30, 2019, amounted to 5,000,000,000 HKD[169]. - The total closing holdings for the CSI 300 ETF as of September 30, 2019, amounted to 1,123,000 shares after various additions and disposals[179]. - The total closing holdings for Shandong Gold Mining Co Ltd increased to 9,310 shares, reflecting a net addition of 2,660 shares during the period[181]. - The total closing holdings for Zijin Mining Group Co Ltd decreased to 91,997 shares after a disposal of 5,700 shares[181]. - The total holdings for China Railway Group decreased to 3,400 shares, resulting in a closing balance of 55,029 shares[179]. Taxation and Compliance - The Sub-Funds are exempt from Hong Kong profits tax as they are authorized collective investment schemes under the Hong Kong Securities and Futures Ordinance[119]. - The Sub-Funds did not accrue any PRC corporate income tax and VAT provisions for gains made on China A-shares through RQFII quotas and Stock Connect programs[125].

(SUB-FUNDS OF MIRAE ASSET HORIZONS EXCHANGE TRADED FUNDS SERIES) MIRAE ASSET HORIZONS EXCHANGE TRADED FUNDS SERIES MIRAE ASSET HORIZONS EXCHANGE TRADED FUNDS SERIES AUDITED FINANCIAL STATEMENTS MIRAE ASSET HORIZONS MSCI CHINA ETF MIRAE ASSET HORIZONS HANG SENG HIGH DIVIDEND YIELD ETF MIRAE ASSET HORIZONS CSI 300 ETF FOR THE YEAR ENDED 31 MARCH 2019 CONTENTS | | Pages | | | --- | --- | --- | | Report of the trustee to the unitholders | 1 | | | Independent auditor's report | 2 – 6 | | | Audited financial stat ...