Baillie Gifford China Growth Trust (BGCG) H1 2025 earnings summary

Executive summary

• NAV per share total return was 14.6% for the six months to 31 July 2025, outperforming the MSCI China All Shares Index by 4.3%.

• Share price total return was 15.5%, reducing the discount to NAV to 9.9%.

• Strong performance was driven by holdings in Pop Mart, Zhongji Innolight, Tencent, Zijin Mining, and an upward revaluation of ByteDance.

• Portfolio turnover was below 20%, with new positions in ANTA Sports, Yangtze Power, and reductions in Meituan.

• The company bought back 0.87m shares at an average discount of 10.6%, enhancing NAV total return.

Financial highlights

• Total assets before bank loans rose to £179.5m from £159.2m at 31 January 2025.

• Net asset value per share increased to 294.53p from 259.07p, a 13.7% rise.

• Share price rose to 265.50p from 232.00p, an increase of 14.4%.

• Revenue earnings per share for the period were 2.45p, up from 2.40p year-over-year.

• Ongoing charges ratio was 1.12% for the year ended 31 January 2025.

Outlook and guidance

• The outlook is constructive, supported by policy stimulus, private sector support, and innovation in AI and high-growth industries.

• Portfolio holdings are forecasted to deliver nearly double the benchmark's earnings growth over the next three years.

• The Board believes the portfolio remains attractively valued, trading at a substantial discount to global equities.