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Your capital is at risk. Past performance is not a guide to future returns.   Linda Lin: Hello and welcome to this annual update on the Baillie Gifford China Growth Trust. My name is Linda Lin, and I am one of the core managers. The Trust aims to deliver long-term capital returns by investing in growth companies in China. Across our teams in Edinburgh and Shanghai, our focus remains on identifying the companies in China with the best potential to compound earnings growth over many years, and owning them with patience and conviction. Over the 12 months to January 2026, the portfolio has delivered a second consecutive year of strong absolute performance for our shareholders, and it also outperformed the relative index. It was a year that China’s macro backdrop continued to evolve, and the progress has been uneven. But the market has increasingly rewarded the corporate fundamental improvements and innovation-led growth. And our portfolio has captured that strength particularly well. In 2025, China delivered a steady but distinctly two-speed expansion. Exports and industrial activities were strong despite the tariff disruptions, while the property sector continued to be a drag, and the consumption was soft. It was also a year in which the innovation gains more momentum. In AI, for example, the emergence of tools such as DeepSeek and the rapid adoption of the generative application underscore the speed of the Chinese ecosystem’s evolution. In our view, the big picture here is that China is under a multi-year transition from a property-led model towards one driven more by productivity, advanced manufacturing, technology and new forms of consumption. And that shift is important for where and how we invest. At the core of our portfolio, there are four key themes. Technology platforms empowered by AI, distinctive consumer franchises, advanced manufacturers and energy security and transition. During the year, we made a number of deliberate changes. We added new holdings, such as MiniMax, an AI lab from China. We also added RedNote, a consumer internet platform at the intersection of social discovery and commerce. This is our second private holding alongside ByteDance. Despite the overall consumer sentiment was soft, we continue to see a structural shift of the consumption preference on the ground. Consumers now in China are spending more on the activities rather than just buying goods. For example, in entertainment, food and travel. We rotated into a few new names that could potentially benefit from this trend. For example, ANTA, a sportswear brand, and Atour, a hotel chain in China. We continue to hold our core positions in leaders in the new energy transition, including the battery maker CATL. But we also expanded to new holdings in hydropower and the traditional energy producers. Meanwhile, we also made selective reductions. We trimmed a number of our holdings in the semiconductor and robotics industries, as the shares have been significantly re-rated, and we decided to take some of the profit to fund our new ideas. We also made some reduction in Meituan, as the local competition is getting worse. Overall, the portfolio remains focused on the companies with strong execution, durable competitive advantages and also a clear path to benefit from the new growth drivers we think will shape China’s next phase of development. As long-term stock pickers, we also would like to emphasise that investing in China requires patience and a willingness to accept short-term volatility. Macro process is uneven, and the geopolitics are complex, but we also believe the opportunity in Chinese companies remains compelling. What changed over the past year is that the innovation is becoming more visible in the real economic activity. AI in particular is moving from the labs to deployed across platforms, software, devices and industrial systems. Considering the scale of China, we believe that will create meaningful opportunity for a number of our holdings. The macro backdrop is still mixed, and we don’t expect there’s a dramatic stimulus-led rebound, but the policy is becoming more supportive, and the confidence may gradually improve, and the valuations remain attractive relative to global markets. For long-term growth investors, that combination continues to offer a favourable starting point. Thank you for your continued support of the China Growth Trust. For more details, please read the latest annual report and the manager’s report on our website. And we look forward to seeing many of you at the next AGM.     Annual past performance to 31 March each year (net %) <table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 74.6668px;"> <tbody> <tr style="height: 18.6667px;"> <td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px;"> </td> <td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right;">2022</td> <td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right;">2023</td> <td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right;">2024</td> <td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right;">2025</td> <td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right;">2026</td> </tr> <tr style="height: 18.6667px;"> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px;">Baillie Gifford China Growth Trust</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-32.7</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-12.8</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-26.0</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">39.7</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">11.1</td> </tr> <tr style="height: 18.6667px;"> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px;">NAV</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-28.2</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-4.7</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-27.1</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">38.1</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">13.2</td> </tr> <tr> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px;">MSCI China All Shares Index</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">-20.5</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">-0.2</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">-18.2</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">26.1</td> <td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">8.2</td> </tr> </tbody> </table> Source: Morningstar and MSCI, total return, sterling.   Past performance is not a guide to future returns. Legal notice: MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.   Important information This communication was produced and approved in May 2026 and has not been updated subsequently. It represents views held at the time of recording and may not reflect current thinking. This communication should not be considered as advice or a recommendation to buy, sell or hold a particular investment. This communication contains information on investments which does not constitute independent investment research. Accordingly, it is not subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments concerned.  The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies and are not authorised or regulated by the Financial Conduct Authority. The value of their shares, and any income from them, can fall as well as rise and investors may not get back the amount invested. Baillie Gifford & Co and Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA).   The specific risks associated with the Trust include: – The Trust invests in overseas securities. Changes in the rates of exchange may also cause the value of your investment (and any income it may pay) to go down or up. – Baillie Gifford China Growth Trust invests in China, where potential issues with market volatility, political and economic instability including the risk of market shutdown, trading, liquidity, settlement, corporate governance, regulation, legislation and taxation could arise, resulting in a negative impact on the value of your investment. Investments in China are often through contractual structures that are complex and could be open to challenge. – Unlisted investments such as private companies can increase risk. These assets may be more difficult to sell, so changes in their prices may be greater. – The Trust can borrow money to make further investments (sometimes known as "gearing" or "leverage"). The risk is that when this money is repaid by the Trust, the value of the investments may not be enough to cover the borrowing and interest costs, and the Trust will make a loss. If the Trust's investments fall in value, any invested borrowings will increase the amount of this loss. – Values for securities which are difficult to trade such as private companies may not be readily available and there can be no assurance that any value assigned to such securities will accurately reflect the price the Trust might receive upon their sale. – The Trust can make use of derivatives which may impact on its performance. – Investment in smaller companies is generally considered higher risk as changes in their share prices may be greater and the shares may be harder to sell. Smaller companies may do less well in periods of unfavourable economic conditions. –The Trust's exposure to a single market and currency may increase risk. – Share prices may either be below (at a discount) or above (at a premium) the net asset value (NAV). The Trust may issue new shares when the price is at a premium which may reduce the share price. Shares bought at a premium may have a greater risk of loss than those bought at a discount. – The Trust can buy back its own shares. The risks from borrowing, referred to above, are increased when a trust buys back its own shares. – The aim of the Trust is to achieve capital growth and it is unlikely that the Trust will provide a steady, or indeed any, income. – The Trust is listed on the London Stock Exchange and is not authorised or regulated by the Financial Conduct Authority. The information and opinions expressed are subject to change without notice. This information does not in any way constitute investment advice or an offer or invitation to deal in securities.   Legal Notices Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.   195709 10062698

China Growth Trust: Manager Insights

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Linda Lin

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Baillie Gifford China Growth Trust