OPP.L Regulatory News (OPP)

5 September 2013

Origo Partners Plc

("Origo" or the "Group")

Interim Financial Report for the six months ended 30 June 2013

Highlights for the six months ended 30 June, 2013 ("the Period"):

· Total investments of US$4.2 million in existing portfolio companies

· Investment loss of US$37.1 million (30 June 2012 investment loss: US$38.6 million)

· Loss before tax of US$40.1 million (30 June 2012 loss before tax: US$37.3 million)

· Net asset value of US$131.2 million (31 December 2012: US$171.5 million, 30 June 2012: US$204.2 million)

· Net asset value per share of US$0.38 (31 December 2012: US$0.49), equivalent to 25 pence (31 December 2012: 30 pence)*

· Closing net cash position of US$8.9 million

* translated into British Sterling at the prevailing exchange rate at the end of the Period

Chief Executive's Statement

The global economic uncertainty which characterised the majority of 2012 has continued into the first half of 2013, creating a very difficult operating environment for Origo and a number of our portfolio companies. It is against this backdrop of uncertainty that, as previously announced, the Group completed a strategic review and adjusted our current strategy accordingly.

The revised strategy is made up of four key elements: a significant reduction in operating costs; a halt to new investments until further notice; a renewed focus on creating realisations; and the postponement of our planned expansion in Myanmar. Whilst the implementation of the revised strategy will have a significant impact on both the Group and our employees, the Board believes that it is necessary and in the interests of our shareholders.

We believe the revised strategy will enable us to maximise shareholder value and ensure that the Group is positioned to endure the on-going period of economic uncertainty whilst enabling us to focus on delivering value from our existing investments.

In line with the Groups cautious approach to capital management, in February of this year, we successfully extended the maturity of our convertible zero-dividend preference shares ("C-ZDPs") by 18 months to September 2017. As a result we have no significant near term debt maturities.

In the period, the Remuneration Committee commissioned an independent third-party study to benchmark the compensation of Origo's executive directors and senior professionals. The study found the compensation of Origo's executives and staff ranks in the lowest quartile of a broad peer-group of investment vehicles of similar size. This reflects the 73 per cent decline in Directors' remuneration since 2008 and the fact that there has been no increase in the cash element of the executive directors' remuneration from 2007 to 2012. Nevertheless, the Remuneration Committee will continue to keep all elements of the Company's policies under review to ensure they are commensurate with the Group's financial and operating performance.

Financial performance

In general, the underlying performance of our portfolio during the first half of 2013 has been satisfactory, in spite of the continuing economic and political challenges in both Mongolia and China.

However, the Directors' estimate of the fair value of Origo's portfolio of investments decreased to US$174.5 million from US$209.0 million as at 31 December 2012, after total investments of US$4.2 million in existing portfolio companies during the Period. The decrease principally reflects a reduction in the fair value of two key investments.

We reduced the carrying value of our investment in Gobi Coal and Energy by 50 per cent from US$53.6 million to US$26.8 million, reflecting the depressed valuations of junior mining companies across the world, pricing developments at the Chinese/Mongolian border, and negative investor sentiments towards Mongolia.

We also wrote off the total value of our position in R M Williams Agricultural Holdings ("RMWAH") to zero. We had already written down the equity value in the business as of year-end 2012 in the context of difficulties in refinancing a senior bank debt facility. As the company has subsequently entered into administration, the Directors have decided to write off the remaining equity value and adopt the same treatment of our second ranking debt position until such time the realization strategy, and resulting recoveries, becomes clear.

Total other administrative expenses reached US$7.9 million (30 June 2012: US$4.5 million), which include one-off provisions of US$3.7 million in respect of debts from RMWAH and certain portfolio companies and US$0.6 million in respect of pension accruals which had not been recognized in the periods to which they relate.

The Group recorded a loss before tax of US$40.1 million, compared to a loss before tax of US$37.3 million in the corresponding period in 2012.

At the end of the Period, the Group had cash and cash equivalents of US$14.7 million compared to US$35.6 million as at June 30 2012. Payables to debtors and other liabilities equalled US$5.8 million (excluding USR fair value movements, provisions for performance incentives and the liability component of the C-ZDP) leaving the Group with a net cash position of US$8.9 million.

The Group also has interests totalling US$9.5 million in listed investments and funds it manages which invest in quoted investments. Additionally, Origo holds a US$15million partnership interest in China Cleantech Partners, which remains uncommitted.

The Group reported net asset value of US$131.2 million at the end of the Period, compared to US$171.5 million as at 31 December 2012 and US$204.2 million as at 30 June 2012, representing a net asset value per share of US$0.38.

Strategy and outlook

Apparently concerned with a slowing economy, Chinese Premier Li Keqiang launched a "mini-stimulus" underpinning GDP growth in the first half of 2013. This clearly shows the new leadership will use both fiscal and monetary policies to ensure that growth is upheld, new jobs are created and a hard landing in China avoided. The plans focused on how to stimulate less developed areas through telecommunications upgrades, investments in environmental technologies and energy conservation as well as a railway construction plan for western China, all aimed at stimulating growth and sustainable development.

If the administration thinks intervention is required to meet short term GDP targets, then we expect that fiscal measures are more likely than monetary ones. China simply has too large of a "cash build up" both domestically and abroad and more of this cash will need to be invested, probably in November and December 2013.

The new leadership in Beijing seems to fundamentally believe in the market economy. Current reforms are aimed at stimulating growth, particularly in private investment, which are good signs for the stability of the economy and the country itself. We therefore expect the third plenary session of the 18th National Congress of the Communist Party of China in Beijing will see more financial reform and continued directed fiscal measures to support growth, but sweeping land and SOE reforms will take longer to deliver.

The re-election of the incumbent Government in Mongolia has been positive, and there are encouraging signs that the Government will take a more pragmatic approach to resource nationalism. The implementation of the New Security Law, recent announcements regarding the development of Oyu Tolgoi and proceeds from Sovereign Bond issues may prove to be key catalysts for future economic growth and foreign investment. This may in time lead to improved prospects for exits and other value creating transactions, however, despite these positive steps the Mongolian economy remains in a fragile state, as evidenced by the Tugrik's depreciation this year. The situation in Mongolia is improving.

Additionally, in spite of the continuing uncertainty in international commodity markets, we remain convinced that the key underlying drivers of demand for commodities such as coal and copper remain strong.

Despite what has undoubtedly been an extremely challenging period for Origo, we continue to believe in the fundamental quality of our investments. Achieving exits in the current market will be difficult, however we are confident that our aggressive cost cutting, lack of near term debt maturities and cautious approach to making investments will provide us with the flexibility to realise exits at a level which delivers maximum value for shareholders.

The strategic and cost cutting initiatives are being monitored on an on-going basis by the Board and senior management and, should prevailing market conditions change, the Company will provide updates as appropriate on their impact on these initiatives.

ENDS

AUDITORS' INDEPENDENT REVIEW REPORT

Introduction

We have been engaged by the Company to review the set of financial statements in the interim financial report for the six months ended 30 June 2013 which comprises the interim consolidated statement of comprehensive income, the interimconsolidated statement of financial position, the interimconsolidated statement of cash flows, the interimconsolidated statement of changes in equity and the related notes 1 to 24. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim set of financial statements.

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" ("ISRE 2410") issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The interim financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the interim financial report in accordance with International Accounting Standard 34, "Interim Financial Reporting" ("IAS 34").

As disclosed in note 2.1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards issued by the Accounting Standards Board and adopted for the use in the European Union. The set of financial statements in the interim financial report has been prepared in accordance with IAS 34.

Our responsibility

Our responsibility is to express to the Company a conclusion on the set of financial statements in the interim financial report based on our review.

Scope of review

We conducted our review in accordance with ISRE 2410 (UK and Ireland) issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the set of financial statements in the interim financial report for the six months ended 30 June 2013 are not prepared, in all material respects, in accordance with IAS 34.

Ernst & Young LLC

Chartered Accountants

Isle of Man

4 September 2013

Origo Partners Plc

Interim Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2013

The accompanying notes form an integral part of these financial statements.

Origo Partners Plc

Interim Consolidated Statement of Financial Position

As at 30 June 2013

The accompanying notes form an integral part of these financial statements.

Origo Partners Plc

Interim Consolidated Statement of Cash Flows

For the six months ended 30 June 2013

* FVTPL refers to fair value through profit or loss

The accompanying notes form an integral part of these financial statements.

Origo Partners Plc

Interim Consolidated Statement of Changes in Equity

For the six months ended 30 June 2013

Attributable to equity holders of the parent

Attributable to equity holders of the parent

* C-ZDPs refers to convertible zero dividend preference shares.

The following describes the nature and purpose of each reserve within parent's equity:

The accompanying notes form an integral part of these financial statements.

1 General information

Origo Partners Plc is a limited liability company incorporated and domiciled in the Isle of Man whose shares are publicly traded on the AIM market of the London Stock Exchange.

The Company and its subsidiaries are collectively referred to as the Group.

The principal activities of the Group are private equity investment, focused exclusively on growth opportunities created by the urbanization and industrialization of China and Mongolia.

These interim consolidated financial statements have been approved and authorised for issue by the Company's board of directors on 4 September 2013.

2 Basis of preparation and significant accounting policies

2.1 Basis of preparation

These interim consolidated financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting".

These interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2012.

2.2 Significant accounting policies

The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2012.

The following amendments to IFRSs standards did not have any impact on the accounting policies, financial position or performance of the Group:

IFRS 7 Amendment to offsetting financial assets and liabilities

IAS 19 Amendment to employee benefits

IAS 1 Presentation of Items of Other Comprehensive Income - Amendments to IAS 1

The amendments to IAS 1 introduce a grouping of items presented in other comprehensive income (OCI). Items that could be reclassified (or recycled) to profit or loss at a future point in time (e.g., net gain on hedge of net investment, exchange differences on translation of foreign operations, net movement on cash flow hedges and net loss or gain on available-for-sale financial assets) now have to be presented separately from items that will never be reclassified (e.g., actuarial gains and losses on defined benefit plans and revaluation of land and buildings). The amendment affected presentation only and had no impact on the Group's financial position or performance.

IFRS 13 Fair Value Measurement

IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The application of IFRS 13 has not materially impacted the fair value measurements carried out by the Group.

The Group has not early adopted any other standard, interpretation or amendment that was issued but is not yet effective.

3 Investment (loss)/income

4 Consulting services receivable/ (payable)

5 Performance incentive

*Reversal of previously recognised performance incentive provision.

5 Performance incentive(Continued)

For the six months ended 30 June 2013, performance incentive accruals of US$1,739K was approved by the board of directors of the Company (other than Chris Rynning and Niklas Ponnert) at the board meeting held on 4 September 2013.

In determining the amount to be accrued, the board(i) assessed the amount of performance incentives arising on each and every individual investment under the terms of the Scheme; and (ii) capped the total amount to be accrued at the higher of a) 20 per cent of the accumulated gain (realised and unrealised) of the Group's portfolio of investments taking into account write-offs, realisations, and movements in the fair value of all investment completed from the time of admission until the balance sheet date and previous payments made under the Scheme; and b) 10 per cent of the accumulated gain (realised and unrealised) over the 10% hurdle on applicable companies in the Group's portfolio of Investments.

6 Other administrative expenses

*Provision for bad debts of US$3.40 million of US$3.65 million of other receivables due from R.M.Williams Agricultural Holdings Pty Ltd. Provision has been recognized only on receivables where it is considered there is a greater than 50% risk of failure.

7 Directors' remuneration

Directors' remuneration for the six months ended 30 June 2013 and number of options held were as follows:

Directors' remuneration for the six months ended 30 June 2012 and number of options held were as follows:

* Short term employee benefits

** Share-based payments refer to expenses arising from the Company's share option scheme (see note 21 for details).

8 Operating segment information

Operating segments are components of the entity whose results are regularly reviewed by the entity's chief operating decision-maker to make decisions about resources to be allocated to the segment and to assess its performance. The chief operating decision-maker for the Group is considered to be the Chief Executive Officer. The Group's operating segments has been defined based on the types of investments which was equity investment, debt instrument and partnership interest in 2013 and 2012.

For the six months ended 30 June 2013 (Unaudited)

* Derivative financial assets included except for derivative component of C-ZDPs.

The Group's geographical areas based on the location of investment assets (non-current assets), are defined primarily as China, Mongolia and Australia, as presented in the following table.

For the six months ended 30 June 2013 (Unaudited)

8 Operating segment information (Continued)

For the six months ended 30 June 2012 (Unaudited)

* Derivative financial assets included except for derivative component of C-ZDPs.

The Group's geographical areas based on the location of investment assets (non-current assets), are defined primarily as China, Mongolia and Australia, as presented in the following table.

For the six months ended 30 June 2012 (Unaudited)

9 Finance income and costs

10 Income tax

No provision for current tax was made for the year as the subsidiaries had no assessable profit. As the Company is not in receipt of income from Manx land or property and does not hold a Manx banking licence, it is taxed at the standard rate of zero per cent on the Isle of Man.

* The deferred income tax relates to net change in fair value gain/(loss) of Celadon Mining Ltd, China Rice Ltd, Unipower Battery Ltd, Niutech Energy Ltd and Beijing Rising Information Technology Ltd, estimated in accordance with the relevant tax laws and regulations in the PRC based on a tax rate of 10 per cent.

11 Loss per share

12 Investments at fair value through profit or loss

As at 30 June 2013 (Unaudited)

* There are no significant restrictions that will have an impact on ability to transfer of these investments, except a lock up of the shares of Kincora Copper Ltd which will expire in July 2014.

** 2% equity stake in Rising Technology Corporation Ltd and 1.6% beneficial interest in Beijing Rising Information Technology Ltd, a company incorporated in the PRC, under a nominee agreement.

*** Investments held by China Commodities Absolute Return Ltd ("CCF") and MSE Liquidity Fund ("MSE Fund"), the funds managed by the Group. The Group ceased to recognize CCF as an investment at FVTPL on 1 May 2011 when its ownership in CCF increased to 60% and instead recognized its separate assets and liabilities.

**** A private equity fund focusing on China's cleantech sectors, jointly formed and co-managed by the Group and EFMI Limited on 50/50 basis.

***** A company focusing on mineral and metal exploration, jointly formed and co-managed by the Group and Eltrana LLC on 50/50 basis.

12 Investments at fair value through profit or loss (Continued)

The proportion of ownership interest held by CCF in unlisted investments is as follows:

In accordance with IFRS 7: Financial Instruments: Disclosures, financial instruments recognized at fair value are required to be analysed between those whose fair value is based on:

a) Quoted prices in active markets for identical assets or liabilities (Level 1);

b) Those involving inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and

c) Those with inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

During the period, there were no transfers between Levels.

Statement of changes in investments at fair value through profit or loss based on level 3:

12 Investments at fair value through profit or loss (Continued)

As at 30 June 2012 (Unaudited)