N-CSR 1 tm257937d1_ncsr.htm N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:	811-05770

Exact name of registrant as specified in charter:	abrdn Emerging Markets ex-China Fund, Inc.

Address of principal executive offices:	1900 Market Street, Suite 200
	Philadelphia, PA 19103

Name and address of agent for service:	Sharon Ferrari
	abrdn Inc.
	1900 Market Street, Suite 200
	Philadelphia, PA 19103

Registrant’s telephone number, including area code:	1-800-522-5465

Date of fiscal year end:	December 31

Date of reporting period:	December 31, 2024

Item 1. Reports to Stockholders.

abrdn Emerging Markets ex-China Fund, Inc.
(formerly known as abrdn Emerging Markets Equity Income Fund, Inc.) (AEF)

Annual Report

December 31, 2024

abrdn.com

Letter to Shareholders (unaudited)

Dear Shareholder,

We present the Annual Report, which covers the activities of abrdn Emerging Markets ex-China Fund, Inc. (formerly, the abrdn Emerging Markets Equity Income Fund, Inc.) (the “Fund”), for the fiscal year ended December 31, 2024. The Fund’s investment objective is to seek to provide both current income and long-term capital appreciation.

As discussed further in the "Strategic Changes" section below, effective February 24, 2025, the Fund's name changed from abrdn Emerging Markets Equity Income Fund, Inc. to abrdn Emerging Markets ex-China Fund, Inc. In addition, effective February 24, 2025, the Fund changed its non-fundamental 80% investment policy to, under normal circumstances, invest at least 80% of its net assets (plus any borrowings for investment purposes) in emerging markets (excluding China) equity securities and the MSCI Emerging Markets ex-China Index replaced the MSCI Emerging Markets Index as the benchmark against which the Fund compares its performance.

Total Investment Return¹

For the fiscal year ended December 31, 2024, the total return to shareholders of the Fund based on the net asset value (“NAV”) and market price of the Fund, respectively, compared to the Fund’s benchmark, is as follows:

NAV²^,³	7.56%
Market Price²	9.24%
MSCI Emerging Markets Index (Net Daily Total Return)⁴^,⁵	7.50%

For more information about Fund performance, please visit the Fund on the web at www.abrdnaef.com. Here, you can view quarterly commentary on the Fund's performance, monthly fact sheets, distribution and performance information, and other Fund literature.

NAV, Market Price and Premium(+)/Discount(-)

The below table represents a comparison between the current fiscal year end and the prior fiscal year end of the Fund's market price to NAV and associated Premium(+) and Discount(-).


	NAV	Closing Market Price	Premium(+)/ Discount(-)
12/31/2024	$5.96	$5.19	-12.92%
12/31/2023	$5.96	$5.11	-14.26%

During the fiscal year ended December 31, 2024, the Fund’s NAV was within a range of $5.54 to $6.76 and the Fund’s market price traded within a range of $4.73 to $5.84. During the fiscal year ended December 31, 2024, the Fund’s shares traded within a range of a premium(+)/discount(-) of -16.33% to -12.12%. During the fiscal year ended December 31, 2024 and fiscal year ended December 31, 2023, the Fund made distributions of $0.39 and $0.39, respectively.

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Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be lower or higher than the performance quoted. Net asset value return data include investment management fees, custodial charges and administrative fees (such as Director and legal fees) and assumes the reinvestment of all distributions.

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²	Assuming the reinvestment of all dividends and distributions.

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³	The Fund’s total return is based on the reported NAV for each financial reporting period end and may differ from what is reported on the Financial Highlights due to financial statement rounding or adjustments.

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⁴

The MSCI Emerging Markets Index (Net Daily Total Return) (the "Index") captures large and mid-cap representation across 24 Emerging Markets (EM) countries. With 1,441 constituents, the Index covers approximately 85% of the free float-adjusted market capitalization in each country. EM countries in the Index are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. The Index is calculated net of withholding taxes to which the Fund is generally subject. The Index is unmanaged and has been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. Index performance is not an indication of the performance of the Fund itself.

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⁵	Performance information for periods prior to February 24, 2025 does not reflect the current 80% investment policy.

abrdn Emerging Markets ex-China Fund, Inc.

Letter to Shareholders (unaudited) (continued)

Strategic Changes

On December 10, 2024, the Fund announced that its Board of Directors (the "Board") had approved multiple changes to the Fund including: (1) changes to the Fund's name and 80% nonfundamental investment policy; (2) a 20% tender offer to be offered in the first quarter of 2025; (3) a new 3-year performance-based conditional tender offer policy commencing on March 1, 2025; and (4) an increase to its annualized distribution rate from 6.5% to 10% effective with the distribution that will be declared in March 2025.

Fund Name Change and Changes to Non-Fundamental Investment Policy

As previously announced, on December 10, 2024, the Fund's Board approved a change in the name of the Fund, and corresponding changes to the Fund's investment policies, including its 80% investment policy, and benchmark, as set forth below, each such change effective February 24, 2025. There was no change to the Fund’s investment objective and the Fund will continue to trade on the NYSE American under ticker symbol “AEF”.

In approving the strategy and name change, the Board considered, among other factors, that as the only U.S. closed-end fund currently offering the emerging market ex-China strategy, the Fund will be less driven by the policy actions of the Government of China, and more driven by stock fundamentals, which aligns with Management’s style of bottom-up investing. The Fund will remain a non-diversified, closed-end management investment company whose objective is to provide both current income and long-term appreciation. Subsequent to the reporting period, and in connection with these changes, the Fund transitioned its portfolio consistent with its change to an emerging market ex-China strategy, which would include the sale of China securities held by the Fund. Any realized capital gains generated from these sales would be offet by the Fund's capital loss carryforward listed in Notes to Financial Note 11.

	Current	New
Fund Name	abrdn Emerging Markets Equity Income Fund, Inc.	abrdn Emerging Markets ex-China Fund, Inc.
80% Investment Policy	The Fund invest at least 80% of its net assets (plus any borrowings for investment purposes) in emerging markets equity securities.	Under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in emerging markets (excluding China) equity securities.
Benchmark	MSCI Emerging Markets Index (Net Daily Total Return)	MSCI Emerging Markets ex-China Index (Net Daily Total Return)

Tender Offer

The Fund announced on January 21, 2025, the commencement of a cash tender offer to purchase up to 10,150,355 shares, representing approximately 20% of the Fund's outstanding shares, at a price per share equal to 98% of the Fund's net asset value ("NAV") per share as determined by the Fund on the next business day immediately following the day the tender expires. The offer commenced at 12:01 am, January 21, 2025, and expired at 5:00 p.m. New York City time on February 20, 2025. In connection with the tender offer, the Fund purchased 10,150,355 shares for cash payment stock at a price equal to $6.07 per share. {The tender offer was oversubscribed and all tenders of shares were subject to pro ration (at a ratio of approximately 0.27624999) in accordance with the terms of the tender offer.}.

Update to the Fund’s Conditional Tender Offer Policy

As part of the Board’s commitment to shareholders relating to the investment strategy changes, the Board has adopted a policy (the “Policy”) pursuant to which it will cause the Fund to conduct a one-time tender offer for twenty percent (20%) of its then issued and outstanding shares of common stock on or before June 30, 2028, if the Fund’s total return investment performance measured on a NAV

basis does not equal or exceed the total return investment performance of the MSCI Emerging Markets ex-China Index (Net Daily Total Return) during the period commencing on March 1, 2025 and ending on February 28, 2028. The price at which shares are to be tendered and other terms and conditions of such tender offer would be determined by the Board in its discretion based on its review and consideration of the then-current size of the Fund, market conditions and other factors it deems relevant.

Annualized Distribution Rate Increase and Declaration of Next Distribution

The Fund also announced that, as part of the strategic changes, the Board approved an increase to its annualized distribution rate from 6.5% to 10%, commencing with the quarterly distribution to be paid March 2025. The actual amount of the distribution will continue to be based on the average daily net asset value (“NAV”) for the previous three months as of the month-end prior to declaration. The Fund intends to maintain the increased distribution rate for at least the 12 months following the effective increase, unless there is a significant and unforeseen change in market conditions. This policy will be subject to regular review by the Board. The policy is expected to provide a steady and sustainable quarterly cash distribution to Fund

2	abrdn Emerging Markets ex-China Fund, Inc.

Letter to Shareholders (unaudited) (continued)

shareholders that may help reduce any discount to NAV at which the Fund’s shares trade. There is no assurance that the Fund will achieve these results.

Distribution Policy

The Fund had a managed distribution policy of paying quarterly distributions at an annual rate, set once a year, as a percentage of the rolling average of the Fund’s NAVs over the preceding three month period ending on the last day of the month immediately preceding the distribution’s declaration date. In December 2023, the Board of Directors of the Fund (the “Board”) determined the rolling distribution rate to be 6.5% for the 12-month period commencing with the distribution payable in March 2024.

The distributions will be made from net investment income generated by dividends paid from the Fund’s underlying securities and return of capital. As net assets of the Fund may vary from quarter to quarter, the quarterly distribution may represent more or less than one quarter of 6.5% of the Fund’s net assets at the time of distribution. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of the distributions or the terms of the Fund’s policy.

Credit Facility

On June 18, 2024, the Fund renewed its revolving credit facility for a 1-year period with The Bank of Nova Scotia with a committed facility of $50,000,000. The outstanding balance on the loan as of December 31, 2024 was $40,000,000. Under the terms of the credit facility and applicable regulations, the Fund is required to maintain certain asset coverage ratios for the amount of its outstanding borrowings, as of December 31, 2024, the Fund is in compliance with all regulations and required coverage ratios. The Board regularly reviews the use of leverage by the Fund.

Unclaimed Share Accounts

Please be advised that abandoned or unclaimed property laws for certain states require financial organizations to transfer (escheat) unclaimed property (including Fund shares) to the state. Each state has its own definition of unclaimed property, and Fund shares could be considered “unclaimed property” due to account inactivity (e.g., no owner-generated activity for a certain period), returned mail (e.g., when mail sent to a shareholder is returned to the Fund's transfer agent as undeliverable), or a combination of both. If your Fund shares are categorized as unclaimed, your financial advisor or the Fund's transfer agent will follow the applicable state’s statutory requirements to contact you, but if unsuccessful, laws may require that the shares be escheated to the appropriate state. If this happens, you will have to contact the state to recover your property, which may involve time and expense. For more information on unclaimed property and how to maintain an active account, please contact your financial adviser or the Fund's transfer agent.

Open Market Repurchase Program

The Board approved an open market repurchase and discount management policy (the “Program”). The Program allows the Fund to purchase, in the open market, its outstanding common shares, with the amount and timing of any repurchase determined at the discretion of the Fund's investment adviser. Such purchases may be made opportunistically at certain discounts to NAV per share in the reasonable judgment of management based on historical discount levels and current market conditions. If shares are repurchased, the Fund reports repurchase activity on its website on a monthly basis. For the fiscal year ended December 31, 2024, the Fund did not repurchase any shares through the Program.

On a quarterly basis, the Board will receive information on any transactions made pursuant to this policy during the prior quarter. Under the terms of the Program, the Fund is permitted to repurchase up to 10% of its outstanding shares of common stock in the open market as of a date determined by the Board.

Portfolio Holdings Disclosure

The Fund's complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year are included in the Fund's semi-annual and annual reports to shareholders. The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These reports are available on the SEC’s website at http://www.sec.gov. The Fund makes the information available to shareholders upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465.

Proxy Voting

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available by August 31 of the relevant year: (1) upon request without charge by calling Investor Relations toll-free at 1-800-522-5465; and (2) on the SEC’s website at http://www.sec.gov.

Investor Relations Information

As part of abrdn’s commitment to shareholders, we invite you to visit the Fund on the web at www.abrdnaef.com. Here, you can view monthly fact sheets, quarterly commentary, distribution and performance information, as well as other Fund literature. Enroll in abrdn's email services to receive content related to your fund. In addition, you will receive monthly factsheets based on your preferences. Sign up today at https:// www.abrdn.com/en-us/cefinvestorcenter/contact-us/preferences.

abrdn Emerging Markets ex-China Fund, Inc.

Letter to Shareholders (unaudited) (concluded)

•	Visit: https://www.abrdn.com/en-us/cefinvestorcenter

•	Email: Investor.Relations@abrdn.com; or

•	Call: 1-800-522-5465 (toll free in the U.S.).

Yours sincerely,

/s/ Alan Goodson
Alan Goodson
President

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All amounts are U.S. Dollars unless otherwise stated.

4	abrdn Emerging Markets ex-China Fund, Inc.

Report of the Investment Adviser (unaudited)

Market/Economic Review

Emerging market equities, as measured by the Morgan Stanley Capital International (MSCI) Emerging Markets Index, (Net Daily Total Return)¹ rose over the year, but trailed developed market equities, as represented by the MSCI World Index². Share price divergence within countries and sectors marked emerging market performance over the period ended December 31, 2024. Technology companies did well, especially those in Taiwan, riding the wave of the "Magnificent 7"³ stocks in the U.S. However, markets such as Brazil and Mexico fell sharply due to concerns over fiscal discipline and potentially slowing economic prospects. China saw a late-year surge thanks to a slew of government stimulus measures in September 2024, signaling a shift towards a pro-growth stance. Meanwhile, in September 2024, the U.S. Federal Reserve lowered interest rates for the first time in four years but hinted at a slower pace of easing in 2025.

Separately, several major emerging economies held elections in 2024, including India, where the ruling Bharatiya Janata Party lost its parliamentary majority and had to rely on allies to remain in power. In Mexico, the ruling left-wing party won a landslide victory. The year concluded with former President Donald Trump’s re-election in the U.S., which raised questions about the implications for emerging markets.

Fund Performance Review

The abrdn Emerging Markets Equity Income Fund returned 7.56%⁴ on a net asset value (NAV) basis for the 12-month period ended December 31, 2024, performing broadly in line with the 7.50%⁵ return of its benchmark, the MSCI Emerging Markets Index (Net Daily Total Return).

Taiwan was the top geographic contributor to relative returns, benefiting from a tech rally tied to robust artificial intelligence (AI)-driven demand, particularly in the first half of the year 2024. Taiwan Semiconductor Manufacturing Co. was a standout performer. The chipmaker executed consistently well, reporting stronger-than-expected results. Electronic test equipment maker Chroma ATE was buoyed by increased demand for system level testers due to the rising complexity of semiconductor chips. Logic circuit switch maker Accton Technology gained from exposure to data center switches and AI accelerators.

The Fund’s off-benchmark exposure to Vietnam also worked to the portfolio’s advantage, as IT company FPT Corp. maintained strong IT service momentum during the year.

Elsewhere, relatively weak market sentiment in China and Hong Kong, particularly in the first half of 2024, detracted from performance. Despite strong fundamentals, the Fund’s consumer-related stocks trailed up until mid-September, as the market favored value trades. This changed after China announced its wide-ranging stimulus policies in September 2024. The market rebounded sharply initially but gains faded due to a lack of measures targeting direct consumption. President Trump’s win and the anticipated impact on China further affected investor risk appetite in the area.

While the market in China ended the year positively, value names outpaced quality and growth. Fund stock selection was overall negative. Pan-Asian insurer AIA fell on weak market sentiment and foreign outflows, despite delivering positive earning results. The Fund’s underweight to food delivery platform Meituan, which was introduced to the portfolio during the year, also proved costly as the stock rallied following China’s stimulus measures. There were some bright spots, however. Tencent delivered robust results and demonstrated a turnaround in core gaming revenue and a surge in advertising revenues linked to more efficient monetization of its video accounts business. White goods manufacturer Midea Group also fared well, alongside new additions, battery maker Contemporary Amperex Technology and insurer PICC Property and Casualty.

The Fund’s Indonesian holdings in Bank Negara and Telkom Indonesia, a former investment in Bank Rakyat, from which the Fund divested on our falling conviction, underperformed owing to an unexpected rate hike by the central bank. Bank Indonesia subsequently lowered rates, but macro sentiment remained weak.

In South Korea, Samsung Electronics’ preferred shares lagged amid uncertainty around its high bandwidth memory product qualifying for a key customer. SK Hynix saw some profit-taking in November on the back of concerns about 2025 profit estimates. Not holding the stock for the full year weighed negatively on relative returns. Samsung E&A also declined due to a lack of expected project wins and worries about weaker oil prices affecting its petrochemical pipeline project. Losses in South Korea were partly mitigated by HD Korea Shipbuilding &

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1	The MSCI Emerging Markets Index is an unmanaged index considered representative of stocks of developing countries. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.

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2	The MSCI World Index is an unmanaged index considered representative of stocks of developed countries.

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3	The Magnificent 7 stocks are Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla stocks.

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Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Net asset value return data include investment management fees, custodial charges and administrative fees (such as Director and legal fees) and assumes the reinvestment of all distributions.

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5	As of December 31, 2024.

abrdn Emerging Markets ex-China Fund, Inc.

Report of the Investment Adviser (unaudited) (concluded)

Offshore Engineering, which posted solid gains on good results, improved order flows and favorable new vessel pricing.

Fund’s exposure to Latin America hampered returns, particularly in Mexico where expectations of populist policies from the new government dampened market sentiment. The Fund adjusted its risk exposure by trimming existing holdings and exiting Banorte on our declining conviction. Brazilian stocks came under pressure amid fiscal uncertainties as the government’s highly anticipated spending cut package fell short of expectations, while the Brazilian central bank’s sharp rate hike in December 2024 to combat inflation also prompted investor caution.

The Fund’s quarterly distribution reflects its current policy to provide shareholders with a steady and sustainable cash distribution. This policy did not have a significant impact on the Fund’s investment strategy over the reporting period. During the 12-month period ended December 31, 2024, the distributions comprised dividend income and a return of capital. The Fund issued distributions totaling $0.39 per share for the 12-month period ended December 31, 2024.

Outlook

The outlook for emerging markets appears to be improving. Structural tailwinds remain intact, as global investment continues to recover, with a corresponding increased focus on the real economy. Emerging market central banks and governments have demonstrated fiscal and monetary discipline for an extended period. Both corporate and country debt levels appear healthy overall, which adds to the resilience of the asset class moving forward.

South Korea will likely stay in the spotlight after President Yoon’s impeachment. While he faces a criminal inquiry, the prime minister, who was named acting president, was also impeached. The finance minister has taken on the role of president, albeit with limited political heft at his disposal. Investors are now likely to attach a higher political risk premium to the South Korean market as a result. Most of our portfolio companies have dollar/export earnings streams and

strong positions in their respective industries. We have not yet felt the need to adjust any positions in Korea, but we are monitoring the situation closely.

While President Trump’s promise of higher U.S. tariffs spells uncertainty for emerging markets, particularly China, we believe that tariffs and Trump’s pro-growth agenda could lead to upward pressure on the US dollar, benefitting the dollarized Middle East region. Meanwhile, India’s long-term prospects remain relatively bright, backed by significant transformations in physical and digital infrastructure, a resilient macro backdrop and positive demographics.

Overall, we believe emerging market valuations remain attractive, both historically and compared to the U.S. market valuations. Our portfolio companies are delivering results, which we believe the market will reward. In recent years China has become a policy-driven market and as such, by excluding this market we believe that our style of bottom-up investing should work well. These companies exhibit quality characteristics such as sustainable free cash flow, earnings growth, pricing power and low debt levels. We remain confident in our holdings and their ability to navigate market crosswinds.

Risk Considerations

Past performance is not an indication of future results.

Foreign securities are more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards, and political and economic risks. These risks are enhanced in emerging markets countries. Equity stocks of small and mid-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies. Dividends are not guaranteed and a company’s future ability to pay dividends may be limited. The use of leverage will also increase market exposure and magnify risk.

abrdn Investments Limited

6	abrdn Emerging Markets ex-China Fund, Inc.

Total Investment Return (unaudited)

The following table summarizes the average annual Fund performance compared to the Fund’s primary benchmark and Custom Index (as defined below) for the 1-year, 3-year, 5-year and 10-year periods ended December 31, 2024.

	1 Year	3 Years	5 Years	10 Years
Net Asset Value (NAV)	7.56%	-4.93%	-0.90%	2.37%
Market Price	9.24%	-6.33%	-1.11%	1.88%
MSCI Emerging Markets Index (Net Daily Total Return)	7.50%	-1.92%	1.70%	2.81%
Custom AEF Emerging Markets Index¹	7.50%	-1.92%	1.70%	3.64%

Performance of a $10,000 Investment (as of December 31, 2024)

This graph shows the change in value of a hypothetical investment of $10,000 in the Fund for the periods indicated. For comparison, the same investment is shown in the indicated index.

abrdn Emerging Markets ex-China Fund Inc. (formerly, the abrdn Emerging Markets Equity Income Fund, Inc.) changed its 80% investment policy and benchmark to the MSCI Emerging Markets ex-China Index (Net Daily Total Return) effective February 24, 2025. Performance information for periods prior to February 24, 2025 does not reflect the current 80% investment policy and benchmark.

All performance information for the periods prior to April 30, 2018 are for the Aberdeen Latin American Equity Fund, Inc. (“LAQ”), the performance and accounting survivor of the reorganizations of seven closed-end funds into the Fund. Performance information for periods prior to April 30, 2018 do not reflect the Fund’s current investment strategy. Returns prior to April 30, 2018 reflect the impact of any contractual waivers in effect for LAQ, without which performance would be lower. Effective April 30, 2018, abrdn Investments Limited (formerly known as Aberdeen Asset Managers Limited) (the "Investment Adviser" or the "Adviser"), the Fund’s Adviser, entered into an expense limitation agreement with the Fund that is effective through June 30, 2025. Without such waivers and limitation agreements, performance would be lower.

abrdn Inc. has entered into an agreement with the Fund to limit investor relations services fees,without which performance would be lower if the Fund’s investor services fees exceeded such limit during the relevant period. This agreement aligns with the term of the advisory agreement and may not be terminated prior to the end of the current term of the advisory agreement. See Note 3 in the Notes to Financial Statements.

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The Custom Index reflects the returns of the MSCI Emerging Markets Latin America Index (Net Daily Total Return) for periods prior to April 27, 2018 and the returns of the MSCI Emerging Markets Index (Net Daily Total Return) for periods subsequent to April 30, 2018. The indices and time periods for the Custom Index align with the strategies utilized and benchmark for the Fund during the same time periods.

abrdn Emerging Markets ex-China Fund, Inc.

Total Investment Return (unaudited) (concluded)

Returns represent past performance. Total investment return at NAV is based on changes in the NAV of Fund shares and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. All return data at NAV includes fees charged to the Fund, which are listed in the Fund’s Statement of Operations under “Expenses.” Total investment return at market value is based on changes in the market price at which the Fund’s shares traded on the New York Stock Exchange ("NYSE") American during the period and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. The Fund’s total investment return is based on the reported NAV during the fiscal year ended December 31, 2024. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on both market price and NAV. Past performance is no guarantee of future results.The performance information provided does not reflect the deduction of taxes that a shareholder would pay on distributions received from the Fund.The current performance of the Fund may be lower or higher than the figures shown. The Fund’s yield, return, market price and NAV will fluctuate. Performance information current to the most recent month-end is available at www.abrdnaef.com or by calling 800-522-5465.

The gross operating expense ratio excluding fee waivers based on the fiscal year ended December 31, 2024 was 2.04%. The net operating expense ratio net of fee waivers based on the fiscal year ended December 31, 2024 was 1.96%. The total expense ratio net of fee waivers and excluding taxes and interest and revolving credit facility expenses based on the fiscal year ended December 31, 2024 was 1.20%.

8	abrdn Emerging Markets ex-China Fund, Inc.

Portfolio Summary (as a percentage of net assets) (unaudited)

As of December 31, 2024

The following table summarizes the sector composition of the Fund’s portfolio, in S&P Global Inc.’s Global Industry Classification Standard (“GICS”) The Fund may invest in securities of any market sector and may hold a significant amount of securities of companies, from time to time, within a single sector. The Fund will not invest 25% or more of its total assets in the securities of companies in the same industry. In the chart below, if the sector represents more than 25% of the Fund's portfolio, the industry information has been presented.

Sectors
Information Technology	34.4%
Semiconductors & Semiconductor Equipment	18.4%
IT Services	6.1%
Electronic Equipment, Instruments & Components	4.5%
Technology Hardware, Storage & Peripherals	3.5%
Communications Equipment	1.9%
Financials	22.2%
Consumer Discretionary	16.3%
Industrials	12.0%
Communication Services	10.9%
Materials	5.3%
Real Estate	3.7%
Consumer Staples	3.6%
Utilities	2.6%
Health Care	2.1%
Energy	1.8%
Private Equity	0.1%
Short-Term Investment	0.8%
Liabilities in Excess of Other Assets	(15.8%)
	100.0%

The following table summarizes the composition of the Fund’s portfolio by geographic classification.

Countries
China	30.8%
Taiwan	23.2%
India	22.6%
South Korea	8.9%
Mexico	5.2%
Brazil	4.6%
Saudi Arabia	3.8%
United Arab Emirates	3.8%
Vietnam	3.0%
Indonesia	2.5%
Other, less than 2% each	6.6%
Short-Term Investment	0.8%
Liabilities in Excess of Other Assets	(15.8%)
	100.0%

abrdn Emerging Markets ex-China Fund, Inc.

Portfolio Summary (as a percentage of net assets) (unaudited) (concluded)

As of December 31, 2024

Currency Composition
New Taiwan Dollar	23.2%
Hong Kong Dollar	22.9%
Indian Rupee	22.6%
Chinese Yuan Renminbi	9.1%
South Korean Won	8.9%
U.S. Dollar	8.3%
Saudi Arabia Riyal	3.8%
United Arab Emirates Dirham	3.8%
Viet Nam Dong	3.0%
Indonesian Rupiah	2.5%
Brazilian Real	2.4%
Euro Currency	1.3%
Kazakhstan Tenge	1.2%
South African Rand	1.0%
Mexican Peso	1.0%
Russian Ruble	-
Short-Term Investment	0.8%
Liabilities in Excess of Other Assets	(15.8%)
	100.0%

The following were the Fund’s top ten holdings as of December 31, 2024:

Top Ten Holdings
Taiwan Semiconductor Manufacturing Co. Ltd.,ADR	14.8%
Tencent Holdings Ltd.	7.4%
Samsung Electronics Co. Ltd.	3.5%
Contemporary Amperex Technology Co. Ltd., A Shares (Stock Connect)	3.1%
FPT Corp.	3.0%
Alibaba Group Holding Ltd.	3.0%
Power Grid Corp. of India Ltd.	2.6%
Al Rajhi Bank	2.5%
Southern Copper Corp.	2.4%
Meituan, Class B	2.3%

Amounts listed as “–” are 0% or round to 0%.

10	abrdn Emerging Markets ex-China Fund, Inc.

Portfolio of Investments

As of December 31, 2024

	Shares		Value
COMMON STOCKS—110.2%
BRAZIL—3.4%
Consumer Discretionary—1.2%
MercadoLibre, Inc.^(a)		2,071	$ 3,521,611
Consumer Staples—0.7%
Raia Drogasil SA		576,897	2,053,461
Energy—0.5%
PRIO SA^(a)		242,251	1,587,922
Financials—1.0%
NU Holdings Ltd., Class A^(a)		301,079	3,119,179
Total Brazil			10,282,173
CHINA—30.8%
Communication Services—7.4%
Tencent Holdings Ltd.		416,700	22,240,455
Consumer Discretionary—11.5%
Alibaba Group Holding Ltd.		868,900	9,195,877
ANTA Sports Products Ltd.		519,800	5,133,700
Meituan, Class B^(a)(b)		364,300	7,083,216
Midea Group Co. Ltd.^(a)		335,300	3,226,884
Midea Group Co. Ltd., A Shares (Stock Connect)^(c)		218,486	2,250,995
Tongcheng Travel Holdings Ltd.^(b)		1,156,800	2,689,372
Trip.com Group Ltd.^(a)		75,150	5,171,847
			34,751,891
Consumer Staples—1.2%
Kweichow Moutai Co. Ltd., A Shares (Stock Connect)^(c)		17,297	3,611,448
Financials—2.8%
PICC Property & Casualty Co. Ltd., H Shares (Hong Kong)		3,562,000	5,602,319
Ping An Insurance Group Co. of China Ltd., H Shares (Hong Kong)		501,500	2,943,481
			8,545,800
Health Care—1.2%
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A Shares (Stock Connect)^(c)		103,655	3,620,451
Industrials—5.9%
Centre Testing International Group Co. Ltd., A Shares (Stock Connect)^(c)		545,000	927,997
Contemporary Amperex Technology Co. Ltd., A Shares (Stock Connect)^(c)		257,197	9,374,992
NARI Technology Co. Ltd., A Shares (Stock Connect)^(c)		1,364,700	4,716,068
Sungrow Power Supply Co. Ltd., A Shares (Stock Connect)^(c)		291,920	2,953,562
			17,972,619
Real Estate—0.8%
China Resources Land Ltd.		883,000	2,534,887
Total China			93,277,551
HONG KONG—1.2%
Financials—1.2%
AIA Group Ltd.		507,200	3,643,147
INDIA—22.6%
Communication Services—2.3%
Bharti Airtel Ltd.		173,452	3,223,007
Info Edge India Ltd.		36,435	3,692,353
			6,915,360
Consumer Discretionary—2.7%
Indian Hotels Co. Ltd.		429,598	4,375,698
Mahindra & Mahindra Ltd.		107,525	3,773,419
			8,149,117
Consumer Staples—0.8%
Hindustan Unilever Ltd.		92,940	2,524,368
Financials—7.0%
Cholamandalam Financial Holdings Ltd.		77,700	1,265,038

abrdn Emerging Markets ex-China Fund, Inc.

Portfolio of Investments (continued)

As of December 31, 2024

	Shares		Value
COMMON STOCKS (continued)
INDIA (continued)
Cholamandalam Investment & Finance Co. Ltd.		167,091	$ 2,313,532
HDFC Bank Ltd.		340,690	7,042,196
ICICI Bank Ltd.		438,111	6,555,624
SBI Life Insurance Co. Ltd.^(b)		250,210	4,056,381
			21,232,771
Health Care—0.9%
Torrent Pharmaceuticals Ltd.		67,629	2,654,646
Industrials—1.0%
Havells India Ltd.		160,294	3,131,944
Information Technology—2.0%
Infosys Ltd.		157,974	3,470,905
Tata Consultancy Services Ltd.		54,794	2,622,003
			6,092,908
Materials—1.9%
UltraTech Cement Ltd.		42,870	5,704,691
Real Estate—1.4%
Godrej Properties Ltd.^(a)		126,142	4,095,351
Utilities—2.6%
Power Grid Corp. of India Ltd.		2,184,213	7,876,942
Total India			68,378,098
INDONESIA—2.5%
Communication Services—1.2%
Telkom Indonesia Persero Tbk. PT		21,197,000	3,548,079
Consumer Discretionary—0.0%
Sepatu Bata Tbk. PT^(a)(d)		9,306,800	28,912
Financials—1.3%
Bank Negara Indonesia Persero Tbk. PT		14,362,800	3,865,422
Total Indonesia			7,442,413
KAZAKHSTAN—1.4%
Financials—1.4%
Kaspi.KZ JSC		35,766	3,716,983
Kaspi.KZ JSC, GDR^(b)		4,684	443,622
			4,160,605
MEXICO—5.2%
Consumer Staples—0.9%
Fomento Economico Mexicano SAB de CV, ADR		31,693	2,709,435
Industrials—0.9%
Grupo Aeroportuario del Centro Norte SAB de CV, ADR		39,941	2,741,550
Materials—3.4%
Grupo Mexico SAB de CV		625,018	2,975,962
Southern Copper Corp.		79,095	7,207,927
			10,183,889
Total Mexico			15,634,874
PERU—0.5%
Financials—0.5%
Credicorp Ltd.		7,733	1,417,614
POLAND—1.3%
Industrials—1.3%
InPost SA^(a)		228,491	3,900,830
RUSSIA—0.0%
Energy—0.0%
Novatek PJSC^(d)(e)		20,251	–

12	abrdn Emerging Markets ex-China Fund, Inc.

Portfolio of Investments (continued)

As of December 31, 2024

	Shares		Value
COMMON STOCKS (continued)
RUSSIA (continued)
Financials—0.0%
Sberbank of Russia PJSC^(d)(e)		730,234	$ –
Total Russia			–
SAUDI ARABIA—3.8%
Energy—1.3%
Saudi Arabian Oil Co.^(b)		552,054	4,121,058
Financials—2.5%
Al Rajhi Bank		296,750	7,459,055
Total Saudi Arabia			11,580,113
SOUTH AFRICA—1.0%
Financials—1.0%
Sanlam Ltd.		674,730	3,106,341
SOUTH KOREA—5.4%
Financials—0.9%
Shinhan Financial Group Co. Ltd.		81,999	2,658,967
Industrials—2.9%
HD Korea Shipbuilding & Offshore Engineering Co. Ltd.^(a)		28,676	4,410,069
Samsung C&T Corp.		27,789	2,147,232
Samsung E&A Co. Ltd.^(a)		196,343	2,188,622
			8,745,923
Information Technology—1.6%
SK Hynix, Inc.		43,816	5,020,889
Total South Korea			16,425,779
TAIWAN—23.2%
Information Technology—23.2%
Accton Technology Corp.		242,000	5,687,914
Chroma ATE, Inc.		420,000	5,225,781
Delta Electronics, Inc.		415,000	5,432,034
MediaTek, Inc.		140,000	6,018,561
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		1,377,000	44,752,532
Yageo Corp.		177,626	2,922,833
			70,039,655
UNITED ARAB EMIRATES—3.8%
Consumer Discretionary—0.9%
Talabat Holding PLC^(a)		7,373,155	2,810,312
Financials—1.4%
Abu Dhabi Islamic Bank PJSC		1,140,371	4,290,692
Real Estate—1.5%
Aldar Properties PJSC		2,098,252	4,385,518
Total United Arab Emirates			11,486,522
UNITED STATES—1.1%
Information Technology—1.1%
Globant SA^(a)		15,524	3,328,656
VIETNAM—3.0%
Information Technology—3.0%
FPT Corp.		1,541,260	9,210,950
Total Common Stocks			333,315,321
PREFERRED STOCKS—4.7%
BRAZIL—1.2%
Financials—1.2%
Itausa SA		2,561,862	3,659,824

abrdn Emerging Markets ex-China Fund, Inc.

Portfolio of Investments (concluded)

As of December 31, 2024

	Shares		Value
PREFERRED STOCKS (continued)
SOUTH KOREA—3.5%
Information Technology—3.5%
Samsung Electronics Co. Ltd.		356,955	$ 10,602,262
Total Preferred Stocks			14,262,086
PRIVATE EQUITY—0.1%
GLOBAL*—0.0%
Private Equity —0.0%
Emerging Markets Ventures I LP^{(a)(d)(f)(g)(h)(i)}		11,723,413^(j)	8,324
ISRAEL—0.0%
Private Equity —0.0%
BPA Israel Ventures LLC^{(a)(d)(f)(g)(h)(i)(k)}		3,349,175^(j)	12,559
UNITED STATES—0.1%
Private Equity —0.1%
Telesoft Partners II LP^{(a)(d)(f)(i)(k)}		2,400,000^(j)	159,456
Total Private Equity			180,339
SHORT-TERM INVESTMENT—0.8%
State Street Institutional U.S. Government Money Market Fund, Premier Class, 4.43%^(l)		2,344,272	2,344,272
Total Short-Term Investment			2,344,272
Total Investments (Cost $315,460,914)^(m)—115.8%			350,102,018
Liabilities in Excess of Other Assets—(15.8%)			(47,654,642)
Net Assets—100.0%			$302,447,376

(a)	Non-income producing security.
(b)	Denotes a security issued under Regulation S or Rule 144A.
(c)	China A Shares. These shares are issued in local currency, traded in the local stock markets and are held through either a Qualified Foreign Institutional Investor (QFII) license or the Shanghai or Shenzhen Hong-Kong Stock Connect program.
(d)	Illiquid security.
(e)	Level 3 security. See Note 2(a) of the accompanying Notes to Financial Statements.
(f)	Fair Value is determined pursuant to procedures approved by the Fund’s Board of Trustees. Unless otherwise noted, securities are valued by applying valuation factors to the exchange traded price. See Note 2(a) of the accompanying Notes to Financial Statements for inputs used.
(g)	Considered in liquidation by the Fund's Adviser.
(h)	As of December 31, 2024, the aggregate amount of open commitments for the Fund is $2,806,782.
(i)	Restricted security, not readily marketable. See Notes to Financial Statements.
(j)	Represents contributed capital.
(k)	Fund of Fund investment.
(l)	Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of December 31, 2024.
(m)	See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities.
*	“Global” is the percentage attributable to the Fund’s holdings in a private equity fund which invests globally and is not categorized under a particular country.

ADR	American Depositary Receipt
GDR	Global Depositary Receipt
PLC	Public Limited Company

See accompanying Notes to Financial Statements.

14	abrdn Emerging Markets ex-China Fund, Inc.

Statement of Assets and Liabilities

As of December 31, 2024

Assets
Investments, at value (cost $313,116,642)	$ 347,757,746
Short-term investment, at value (cost $2,344,272)	2,344,272
Foreign currency, at value (cost $1,025,252)	1,023,883
Receivable for investments sold	263
Interest and dividends receivable	197,395
Tax reclaim receivable	69,603
Prepaid expenses in connection with revolving credit facility (Note 7)	5,451
Prepaid expenses	42,049
Total assets	351,440,662
Liabilities
Revolving Credit Facility payable (Note 7)	40,000,000
Distributions payable	5,075,178
Deferred foreign capital gains tax (Note 2h)	2,912,310
Investment advisory fees payable (Note 3)	642,024
Administration fees payable (Note 3)	64,747
Interest payable on Revolving Credit Facility	63,778
Director fees payable	61,562
Investor relations fees payable (Note 3)	23,664
Other accrued expenses	150,023
Total liabilities	48,993,286

Net Assets	$302,447,376
Composition of Net Assets
Common stock (par value $0.001 per share) (Note 5)	$ 50,752
Paid-in capital in excess of par	382,616,914
Accumulated loss	(80,220,290)
Net Assets	$302,447,376
Net asset value per share based on 50,751,778 shares issued and outstanding	$5.96

See accompanying Notes to Financial Statements.

abrdn Emerging Markets ex-China Fund, Inc.

Statement of Operations

For the Year Ended December 31, 2024

Net Investment Income
Investment Income:
Dividends and other income (net of foreign withholding taxes of $1,018,020)	$ 8,054,121
Total investment income	8,054,121
Expenses:
Investment advisory fee (Note 3)	2,732,902
Directors' fees and expenses	264,250
Custodian’s fees and expenses	249,054
Administration fee (Note 3)	248,290
Legal fees and expenses	102,630
Independent auditors’ fees and tax expenses	78,666
Investor relations fees and expenses (Note 3)	60,827
Reports to shareholders and proxy solicitation	59,599
Transfer agent’s fees and expenses	32,642
Insurance expense	31,530
Miscellaneous	91,033
Total operating expenses, excluding interest expense	3,951,423
Interest expense (Note 7)	2,368,034
Total operating expenses before reimbursed/waived expenses	6,319,457
Expenses waived (Note 3)	(224,465)
Net expenses	6,094,992

Net Investment Income	1,959,129
Net Realized/Unrealized Gain/(Loss):
Net realized gain/(loss) from:
Investments (including $950,604 foreign capital gains tax) (Note 2h)	(22,681,831)
Foreign currency transactions	(222,941)
	(22,904,772)
Net change in unrealized appreciation/depreciation on:
Investments (including change in deferred foreign capital gains tax of $813,592) (Note 2h)	40,697,734
Foreign currency translation	(12,352)
	40,685,382
Net realized and unrealized gain from investments and foreign currencies	17,780,610
Change in Net Assets Resulting from Operations	$19,739,739

See accompanying Notes to Financial Statements.

16	abrdn Emerging Markets ex-China Fund, Inc.

Statements of Changes in Net Assets

	For the Year Ended December 31, 2024	For the Year Ended December 31, 2023
Increase/(Decrease) in Net Assets:
Operations:
Net investment income	$1,959,129	$3,457,780
Net realized loss from investments and foreign currency transactions	(22,904,772)	(15,451,005)
Net change in unrealized appreciation on investments and foreign currency translations	40,685,382	41,120,022
Net increase in net assets resulting from operations	19,739,739	29,126,797
Distributions to Shareholders From:
Distributable earnings	(771,595)	(3,046,603)
Return of capital	(19,021,599)	(16,746,591)
Net decrease in net assets from distributions	(19,793,194)	(19,793,194)
Change in net assets	(53,455)	9,333,603
Net Assets:
Beginning of year	302,500,831	293,167,228
End of year	$302,447,376	$302,500,831

See accompanying Notes to Financial Statements.

abrdn Emerging Markets ex-China Fund, Inc.

Statement of Cash Flows

For the Year Ended December 31, 2024

Cash flows from operating activities:
Net increase/(decrease) in net assets resulting from operations	$ 19,739,739
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Investments purchased	(145,169,781)
Investments sold and principal repayments	156,549,591
Net change in short-term investments	1,758,695
Decrease in interest, dividends and other receivables	314,315
Decrease in prepaid expenses	16,011
Increase in interest payable on Revolving Credit Facility	20,044
Increase in accrued investment advisory fee payable	8,822
Decrease in other accrued expenses	(78,012)
Net change in unrealized appreciation of investments	(40,697,734)
Net change in unrealized depreciation on foreign currency translation	12,352
Net realized loss on investments transactions	22,681,831
Net cash provided by operating activities	15,155,873
Cash flows from financing activities:
Borrowings on Revolving Credit Facility	5,000,000
Distributions paid to shareholders	(19,285,676)
Net cash used in financing activities	(14,285,676)
Effect of exchange rate on cash	880
Net change in cash	871,077
Unrestricted and restricted cash and foreign currency, beginning of year	152,806
Unrestricted and restricted cash and foreign currency, end of year	$1,023,883
Supplemental disclosure of cash flow information:
Cash paid for interest and fees on borrowing	$2,347,990

See accompanying Notes to Financial Statements.

18	abrdn Emerging Markets ex-China Fund, Inc.

Financial Highlights

	For the Fiscal Years Ended December 31,
	2024	2023	2022	2021	2020
PER SHARE OPERATING PERFORMANCE:
Net asset value per common share, beginning of year	$5.96	$5.78	$8.70	$9.41	$8.66
Net investment income^(a)	0.04	0.07	0.12	0.16	0.23
Net realized and unrealized gains/(losses) on investments and foreign currency transactions	0.35	0.50	(2.60)	(0.34)	0.79
Total from investment operations applicable to common shareholders	0.39	0.57	(2.48)	(0.18)	1.02
Distributions to common shareholders from:
Net investment income	(0.02)	(0.06)	(0.13)	(0.22)	(0.27)
Return of capital	(0.37)	(0.33)	(0.31)	(0.31)	–
Total distributions	(0.39)	(0.39)	(0.44)	(0.53)	(0.27)
Net asset value per common share, end of year	$5.96	$5.96	$5.78	$8.70	$9.41
Market price, end of year	$5.19	$5.11	$5.15	$7.92	$8.16
Total Investment Return Based on^(b):
Market price	9.24%	7.12%	(29.76%)	3.27%	11.42%
Net asset value	7.56%	11.32%	(28.23%)	(1.63%)	13.06%
Ratio to Average Net Assets/Supplementary Data:
Net assets, end of year (000 omitted)	$302,447	$302,501	$293,167	$441,576	$477,473
Average net assets applicable to common shareholders (000 omitted)	$310,363	$301,746	$335,898	$492,593	$390,881
Gross operating expenses, excluding fee waivers	2.04%	2.24%	1.74%	1.27%	1.44%
Net operating expenses, net of fee waivers	1.96%	2.14%	1.65%	1.31%	1.44%
Total expenses, excluding taxes and interest and revolving credit facility expenses, net of fee waivers	1.20%	1.20%	1.20%	1.21%	1.27%
Net Investment income	0.63%	1.15%	1.83%	1.61%	2.96%
Portfolio turnover	42%	25%	32%	50%	21%
Senior securities (loan facility) outstanding (000 omitted)	$40,000	$35,000	$55,000	$55,000	$40,900
Asset coverage ratio on revolving credit facility at year end	856%	964%	633%	903%	1,267%
Asset coverage per $1,000 on revolving credit facility at year end^(c)	$8,561	$9,643	$6,330	$9,029	$12,674

(a)	Based on average shares outstanding.
(b)	Total investment return based on market value is calculated assuming that shares of the Fund’s common stock were purchased at the closing market price as of the beginning of the period, dividends, capital gains and other distributions were reinvested as provided for in the Fund’s dividend reinvestment plan and then sold at the closing market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing or selling shares of the Fund. The total investment return based on the net asset value is similarly computed except that the Fund’s net asset value is substituted for the closing market value.
(c)	Asset coverage ratio is calculated by dividing net assets as of each fiscal period end plus the amount of any borrowings, for investment purposes as of each fiscal period end by the amount of the Revolving Credit Facility as of each fiscal period end.

Amounts listed as “–” are $0 or round to $0.

See accompanying Notes to Financial Statements.

abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements
December 31, 2024

1. Organization

abrdn Emerging Markets ex-China Fund, Inc. (formerly known as abrdn Emerging Markets Equity Income Fund, Inc.) (the “Fund”) was incorporated in Maryland on January 30, 1989 and commenced investment operations on September 27, 1989. The Fund is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified closed-end, management investment company. The Fund trades on the NYSE American under the ticker symbol “AEF”.

2. Summary of Significant Accounting Policies

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 Financial Services-Investment Companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to generally accepted accounting principles in the United States of America ("U.S. GAAP"). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. Dollars and the U.S. Dollar is used as both the functional and reporting currency.

a. Security Valuation:

The Fund values its securities at fair value, consistent with regulatory requirements. "Fair value" is defined in the Fund's Valuation and Liquidity Procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to transact at the measurement date, also referred to as market value. Pursuant to Rule 2a-5 under the 1940 Act, the Board of Directors (the "Board") designated abrdn Investments Limited (the "Adviser") as the valuation designee ("Valuation Designee") for the Fund to perform the fair value determinations relating to Fund investments for which market quotations are not readily available or deemed unreliable.

In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. GAAP, the Fund discloses the fair value of its investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1, the highest level, measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3, the lowest level, measurements to valuations based upon unobservable inputs that are

significant to the valuation. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement.

Open-end mutual funds are valued at the respective net asset value (“NAV”) as reported by such company. The prospectuses for the registered open-end management investment companies in which the Fund invests explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing. Closed-end funds and exchange-traded funds (“ETFs”) are valued at the market price of the security at the Valuation Time (defined below). A security using any of these pricing methodologies is generally determined to be a Level 1 investment.

Equity securities that are traded on an exchange are valued at the last quoted sale price or the official close price on the principal exchange on which the security is traded at the “Valuation Time” subject to application, when appropriate, of the valuation factors described in the paragraph below. Under normal circumstances, the Valuation Time is as of the close of regular trading on the New York Stock Exchange ("NYSE") (usually 4:00 p.m. Eastern Time). In the absence of a sale price, the security is valued at the mean of the bid/ask price quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ are valued at the NASDAQ official closing price.

Foreign equity securities that are traded on foreign exchanges that close prior to the Valuation Time are valued by applying valuation factors to the last sale price or the mean price as noted above. Valuation factors are provided by an independent pricing service provider. These valuation factors are used when pricing the Fund's portfolio holdings to estimate market movements between the time foreign markets close and the time the Fund values such foreign securities. These valuation factors are based on inputs such as depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. When prices with the application of valuation factors are utilized, the value assigned to the foreign securities may not be the same as quoted or published prices of the securities on their primary markets. A security that applies a valuation factor is generally determined to be a

20	abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements (continued)
December 31, 2024

Level 2 investment because the exchange-traded price has been adjusted. Valuation factors are not utilized if the independent pricing service provider is unable to provide a valuation factor or if the valuation factor falls below a predetermined threshold; in such case, the security is determined to be a Level 1 investment.

Short-term investments are comprised of cash and cash equivalents invested in short-term investment funds which are redeemable daily. The Fund sweeps available cash into the State Street Institutional U.S. Government Money Market Fund, which has elected to qualify as a “government money market fund” pursuant to Rule 2a-7 under the 1940 Act, and has an objective, which is not guaranteed, to maintain a $1.00 per share NAV. Generally, these investment types are categorized as Level 1 investments.

In the event that a security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closes before the Valuation Time), the security is valued at fair value as determined by the Valuation Designee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Board. A security that has been fair valued by the Adviser may be classified as Level 2 or Level 3 depending on the nature of the inputs.

The three-level hierarchy of inputs is summarized below:

Level 1 - quoted prices (unadjusted) in active markets for identical investments;

Level 2 - other significant observable inputs (including valuation factors, quoted prices for similar securities, interest rates, prepayment speeds, and credit risk, etc.); or

Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The Fund may also invest in private equity private placement securities, which represented less than 0.1% of the net assets of the Fund as of December 31, 2024. The private equity private placement securities in which the Fund is invested are deemed to be restricted securities. In the absence of readily ascertainable market values, these securities are valued at fair value as determined in good faith by, or under the direction of the Board, pursuant to valuation policies and procedures established by the Board. The Fund’s estimate of fair value assumes a willing buyer and a willing seller neither of whom are acting under the compulsion to buy or sell. Although these securities may be resold in privately negotiated transactions, the prices realized on such sales could differ from the prices originally paid by the Fund or the current carrying values, and the difference could be material. These securities are stated at fair value by utilizing the net asset valuations provided by the underlying funds as a practical expedient. In determining the fair value of these investments, management uses the market approach which includes as the primary input the capital balance reported; however, adjustments to the reported capital balance may be made based on various factors, including, but not limited to, the attributes of the interest held, including the rights and obligations, and any restrictions or illiquidity of such interests, and the fair value of these private equity investments. No such adjustments were made to the NAVs provided by the underlying funds.

A summary of standard inputs is listed below:

Security Type	Standard Inputs
Foreign equities utilizing a fair value factor	Depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security.

abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements (continued)
December 31, 2024

The following is a summary of the inputs used as of December 31, 2024 in valuing the Fund's investments and other financial instruments at fair value. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the security types:

Investments, at Value	Level 1 – Quoted Prices	Level 2 – Other Significant Observable Inputs	Level 3 – Significant Unobservable Inputs	Total
Assets
Investments in Securities
Common Stocks	$37,701,813	$295,613,508	$–	$333,315,321
Preferred Stocks	–	14,262,086	–	14,262,086
Short-Term Investment	2,344,272	–	–	2,344,272
Total	$40,046,085	$309,875,594	$–	$349,921,679
Private Equity^(a)				180,339
Total Investments in Securities				$350,102,018

Amounts listed as “–” are $0 or round to $0.

^(a)

Private Equity investments are measured at the net asset valuations provided by the underlying funds as a practical expedient and have not been classified in the fair value levels. The fair value amounts presented are intended to permit reconciliation to the total investment amount presented in the Portfolio of Investments.

During the fiscal year ended December 31, 2024, there have been no transfers between levels and no significant changes to the fair valuation methodologies. There were no Level 3 investments held during and at the end of the year and accordingly, a reconciliation of Level 3 assets for the fiscal year ended December 31, 2024 is not presented. The valuation technique used at December 31, 2024 was fair valuation at zero pursuant to procedures approved by the Board.

b. Restricted Securities:

Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Fund may invest in restricted securities, including unregistered securities eligible for resale without registration pursuant to Rule 144A and privately-placed securities of U.S. and non-U.S. issuers offered outside the U.S. without registration pursuant to Regulation S under the Securities Act of 1933, as amended (the "1933 Act"). Rule 144A securities may be freely traded among certain qualified institutional investors, such as the Fund, but resale of such securities in the U.S. is permitted only in limited circumstances.

c. Foreign Currency Translation:

Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. Dollar, as of the Valuation Time, as provided by an independent pricing service approved by the Board.

Foreign currency amounts are translated into U.S. Dollars on the following basis:

(i) fair value of investment securities, other assets and liabilities – at the current daily rates of exchange at the Valuation Time; and

(ii) purchases and sales of investment securities, income and expenses – at the relevant rates of exchange prevailing on the respective dates of such transactions.

The Fund does not isolate that portion of gains and losses on investments in equity securities due to changes in the foreign exchange rates from the portion due to changes in market prices of equity securities. Accordingly, realized and unrealized foreign currency gains and losses with respect to such securities are included in the reported net realized and unrealized gains and losses on investment transactions balances.

The Fund reports certain foreign currency related transactions and foreign taxes withheld on security transactions as components of realized gains for financial reporting purposes, whereas such foreign currency related transactions are treated as ordinary income for U.S. federal income tax purposes.

Net unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation/depreciation in value of investments, and translation of other assets and liabilities denominated in foreign currencies.

Net realized foreign exchange gains or losses represent foreign exchange gains and losses from transactions in foreign currencies and forward foreign currency contracts, exchange gains or losses realized between the trade date and settlement date on security transactions,

22	abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements (continued)
December 31, 2024

and the difference between the amounts of interest and dividends recorded on the Fund’s books and the U.S. Dollar equivalent of the amounts actually received.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. Dollar. Generally, when the U.S. Dollar rises in value against foreign currency, the Fund's investments denominated in that foreign currency will lose value because the foreign currency is worth fewer U.S. Dollars; the opposite effect occurs if the U.S. Dollar falls in relative value.

d. Rights Issues and Warrants:

Rights issues give the right, normally to existing shareholders, to buy a proportional number of additional securities at a given price (generally at a discount) within a fixed period (generally a short-term period) and are offered at the company’s discretion. Warrants are securities that give the holder the right to buy common stock at a specified price for a specified period of time. Rights issues and warrants are speculative and have no value if they are not exercised before the expiration date. Rights issues and warrants are valued at the last sale price on the exchange on which they are traded.

e. Security Transactions, Investment Income and Expenses:

Security transactions are recorded on the trade date. Realized and unrealized gains/(losses) from security and currency transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. Interest income and expenses are recorded on an accrual basis.

Certain distributions received by the Fund could represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain.

f. Distributions:

The Fund records dividends and distributions payable to its shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. These book basis/tax basis differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions which exceed net

investment income and net realized capital gains for tax purposes are reported as return of capital.

g. Federal Income Taxes:

The Fund intends to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code of 1986, as amended the ("Code"), and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all federal income taxes. Therefore, no federal income tax provision is required.

The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the most recent four fiscal years up to the most recent fiscal year ended December 31, 2024 are subject to such review.

h. Foreign Withholding Tax:

Dividend and interest income from non-U.S. sources received by the Fund are generally subject to non-U.S. withholding taxes and are recorded on the Statement of Operations. The Fund files for tax reclaims for the refund of such withholdings taxes according to tax treaties. Tax reclaims that are deemed collectible are booked as tax reclaim receivable on the Statement of Assets and Liabilities. In addition, the Fund may be subject to capital gains tax in certain countries in which it invests. The above taxes may be reduced or eliminated under the terms of applicable U.S. income tax treaties with some of these countries. The Fund accrues such taxes when the related income is earned.

In addition, when the Fund sells securities within certain countries in which it invests, the capital gains realized may be subject to tax. Based on these market requirements and as required under U.S. GAAP, the Fund accrues deferred capital gains tax on securities currently held that have unrealized appreciation within these countries. The amount of deferred capital gains tax accrued is reported on the Statement of Assets and Liabilities.

3. Agreements and Transactions with Affiliates

a. Investment Adviser:

abrdn Investments Limited serves as the Fund’s investment adviser with respect to all investments. The Adviser is an indirect wholly-owned subsidiary of abrdn plc. The Adviser receives an annual fee, calculated weekly and paid quarterly, equal to 0.90% of the first $250 million, 0.80% of amounts $250-$500 million and 0.75% of

abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements (continued)
December 31, 2024

amounts over $500 million. For the fiscal year ended December 31, 2024, the Adviser earned $2,732,902 for advisory services.

The Adviser and the Fund are party to an expense limitation agreement dated April 27, 2018 (the "Expense Limitation Agreement"), which was in effect through June 30, 2024. At a meeting of the Board held on June 11, 2024, the Expense Limitation Agreement was renewed through June 30, 2025. The Expense Limitation Agreement limits the total ordinary operating expenses of the Fund (excluding any interest, taxes, brokerage fees, short sale dividend and interest expenses and non-routine expenses) from exceeding 1.20% of the average daily Net Assets of the Fund on an annualized basis. Through December 31, 2024, the Adviser waived a total of $224,465 pursuant to the Expense Limitation Agreement. The Adviser may request and receive reimbursement of the advisory fees waived and other expenses reimbursed pursuant to the Expense Limitation Agreement as of a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses; provided that the following requirements are met: the reimbursements do not cause the Fund to exceed the lesser of the applicable expense limitation in the contract at the time the fees were limited or expenses are paid or the applicable expense limitation in effect at the time the expenses are being recouped by the Adviser (the “Reimbursement Requirements”).

As of December 31, 2024, to the extent the Reimbursement Requirements are met, the cumulative potential reimbursements to the Adviser for the Fund, based on expenses reimbursed by the Adviser, including adjustments described above, would be:

Amount Fiscal Year 2022 (Expires 12/31/25)		$309,304
Amount Fiscal Year 2023 (Expires 12/31/26)		$284,122
Amount Fiscal Year 2024 (Expires 12/31/27)		$224,465
Total*		$817,891

*	Amounts reported are due to expire throughout the respective 3-year expiration period presented above.

b. Fund Administration:

abrdn Inc., an affiliate of the Adviser, is the Fund’s Administrator, pursuant to an agreement under which abrdn Inc. receives a fee paid by the Fund, at an annual fee rate of 0.08% of the Fund’s average monthly net assets. For the fiscal year ended December 31, 2024, abrdn Inc. earned $248,290 from the Fund for administration services.

c. Investor Relations:

Under the terms of the Investor Relations Services Agreement, abrdn Inc. provides and/or engages third parties to provide investor relations services to the Fund and certain other funds advised by the Adviser or its affiliates as part of an Investor Relations Program. Under the Investor Relations Services Agreement, the Fund owes a portion of the fees related to the Investor Relations Program (the “Fund’s Portion”). However, investor relations services fees are limited by abrdn Inc. so

that the Fund will only pay up to an annual rate of 0.05% of the Fund’s average weekly net assets. Any difference between the capped rate of 0.05% of the Fund’s average weekly net assets and the Fund’s Portion is paid for by abrdn Inc.

During the fiscal year ended December 31, 2024, the Fund incurred investor relations fees of approximately $60,827. For the fiscal year ended December 31, 2024, abrdn Inc. did not contribute to the investor relations fees for the Fund because the Fund’s contribution was below 0.05% of the Fund’s average weekly net assets on an annual basis.

4. Investment Transactions

Purchases and sales of investment securities (excluding short-term securities) for the fiscal year ended December 31, 2024, were $142,858,088 and $155,137,381, respectively.

5. Capital

The authorized capital of the Fund is 100 million shares of $0.001 par value per share of common stock. As of December 31, 2024, there were 50,751,778 shares of common stock issued and outstanding.

6. Open Market Repurchase Program

The Board approved an open market repurchase and discount management policy (the “Program”). The Program allows the Fund to purchase, in the open market, its outstanding common shares, with the amount and timing of any repurchase determined at the discretion of the Fund’s investment adviser. Such purchases may be made opportunistically at certain discounts to NAV per share in the reasonable judgment of management based on historical discount levels and current market conditions. If shares are repurchased, the Fund reports repurchase activity on its website on a monthly basis.

For the fiscal year ended December 31, 2024, the Fund did not repurchase any shares through this program.

7. Credit Facility

On June 18, 2024, the Fund renewed its revolving credit facility for a 1-year period with The Bank of Nova Scotia with a committed facility of $50,000,000. Previously the committed facility amount was $40,000,000. The outstanding balance on the loan as of December 31, 2024 was $40,000,000. During the current fiscal period ended December 31, 2024 the average daily balance outstanding and the average interest rate on the loan facility was $36,147,541 and 6.45%, respectively. The interest expense is accrued on a daily basis and is

24	abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements (continued)
December 31, 2024

payable to The Bank of Nova Scotia on a monthly basis. The Fund uses leverage for investment purposes. In the event of a general market decrease in the value of assets in which the Fund invests, the effect of that decline will be magnified in the Fund because of the additional assets purchased with the proceeds of the leverage. Non-recurring expenses in connection with the implementation of the loan facility will reduce the Fund’s performance.

The Fund’s leveraged capital structure creates special risks not associated with unleveraged funds having similar investment objectives and policies. The funds borrowed pursuant to the loan facility may constitute a substantial lien and burden by reason of their prior claim against the income of the Fund and against the net assets of the Fund in liquidation. The Fund is not permitted to declare dividends or other distributions in the event of default under the loan facility. In the event of a default under the loan facility, the lenders have the right to cause a liquidation of the collateral (i.e., sell portfolio securities and other assets of the Fund) and, if any such default is not cured, the lenders may be able to control the liquidation as well. A liquidation of the Fund’s collateral assets in an event of default, or a voluntary paydown of the loan facility in order to avoid an event of default, would typically involve administrative expenses and

sometimes penalties. Additionally, such liquidations often involve selling off of portions of the Fund’s assets at inopportune times which can result in losses when markets are unfavorable. The loan facility has a one year term and is not a perpetual form of leverage; there can be no assurance that the loan facility will be available for renewal on acceptable terms, if at all. Bank loan fees and expenses included in the Statement of Operations include fees for the loan facility as well as commitment fees for any portion of the loan facility not drawn upon at any time during the period. During the fiscal year ended December 31, 2024, the Fund incurred fees of approximately $3,567.

The credit agreement governing the loan facility includes usual and customary covenants for this type of transaction. These covenants impose on the Fund asset coverage requirements, Fund composition requirements and limits on certain investments, such as illiquid investments, which are more stringent than those imposed on the Fund by the 1940 Act. The covenants or guidelines could impede the Investment Adviser from fully managing the Fund’s portfolio in accordance with the Fund’s investment objective and policies. Furthermore, non-compliance with such covenants or the occurrence of other events could lead to the cancellation of the loan facility.

8. Private Equity Investments

Certain of the Fund’s investments, listed in the chart below, are restricted as to resale and are valued at NAV as a practical expedient.

Security^(a)	Acquisition Date(s)	Commitment	Cost	Fair Value at December 31, 2024	Percent of Net Assets	Cumulative Distributions Received^(b)
BPA Israel Ventures LLC^(c)	10/05/00-12/09/05	$4,600,000	$1,670,809	$12,559	0.01	$844,787
Emerging Markets Ventures I LP^(c)	01/22/98-01/10/06	13,100,000	3,935,952	8,324	0.00	12,787,187
Telesoft Partners II LP	07/14/00-03/01/10	2,400,000	871,987	159,456	0.05	1,694,311

Amounts listed as “–” are $0 or round to $0.

(a)	Telesoft Partners II LP is still considered an active investment by the Fund’s Adviser. BPA Israel Ventures LLC, and Emerging Markets Ventures I LP are in liquidation.
(b)	Cumulative Distributions include distributions received from Income, realized gains or return of capital. Distributions from return of capital will reduce the cost basis of the security.
(c)	BPA Israel Ventures LLC has open commitments of $1,250,825. Emerging Markets Ventures I LP has open commitments of $1,555,957. These investments are in liquidation status, as indicated on the Portfolio of Investments. As such, future contributions are expected to be limited.

The Fund may incur certain costs in connection with the disposition of the above securities.

9. Portfolio Investment Risks

Effective February 24, 2025, the abrdn Emerging Markets ex-China Fund, Inc. (formerly, the abrdn Emerging Markets Equity Income Fund, Inc.) changed its 80% non-fundamental policy to, under normal circumstances, invest at least 80% of its net assets (plus any borrowings for investment purposes) in emerging markets (excluding China) equity securities. Accordingly, effective February 24, 2025,

"China Risk" is no longer considered a principal risk of the abrdn Emerging Markets ex-China Fund, Inc.

a. China Risk:

China's economy differs from that of the U.S. and other more established economies in such respects as structure, general

abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements (continued)
December 31, 2024

development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, and some of these differences are unfavorable to investors. Therefore, investing in China involves a high degree of risk and special considerations not typically associated with investing in other more established economies or securities markets. Exposure to China may be gained through investments in securities that are economically tied to China or, in some cases, through direct investment in China securities. The Fund invests in China A shares. China A shares are shares in mainland China-based companies that trade on Chinese stock exchanges and are usually only available to foreign investors through a quota license or by purchasing Shanghai and Shenzhen Stock Exchange-listed securities via brokers in Hong Kong through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs (collectively, "Stock Connect”). Investing in China A shares may involve special risk considerations such as volatility in the China A share market and uncertainty regarding taxation.

The Fund’s ability to freely trade in China A shares as a foreign investor through the quota license or Stock Connect may be limited by quota and repatriation restrictions, and utilizing Stock Connect is subject to trading, clearance and settlement procedures in China that are relatively new and untested.

The Fund may also gain exposure to companies based or operated in China by investing through legal structures known as variable interest entities (VIEs). Instead of directly owning the equity securities of a Chinese company, a VIE enters into service and other contracts with the Chinese company. Although the VIE has no equity ownership of the Chinese company, the contractual arrangements permit the VIE to consolidate the Chinese company into its financial statements. The government of China could intervene with respect to VIEs, which could significantly affect the Chinese company's performance and the enforceability of the VIE's contractual arrangement with the Chinese company.

b. Equity Securities Risk:

The stock or other security of a company may not perform as well as expected, and may decrease in value, because of factors related to the company (such as poorer than expected earnings or certain management decisions), to the industry in which the company is engaged (such as a reduction in the demand for products or services in a particular industry) or to the market as a whole (such as periods of market volatility or instability, or general and prolonged periods of economic decline). Holders of common stock generally are subject to more risks than holders of preferred stock or debt securities because the right to repayment of common shareholders' claims is subordinated to that of preferred stock and debt securities upon the bankruptcy of the issuer.

c. Illiquid Securities Risk:

Illiquid securities are assets that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the asset. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities. Illiquid securities are relatively less liquid securities may also be difficult to value.

d. Issuer Risk:

The value of a security may decline for reasons directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services. In an increasingly interconnected financial market, the adverse changes in the financial conditions of one issuer may negatively affect other issuers.

e. Leverage Risk:

The Fund may use leverage to purchase securities. Increases and decreases in the value of the Fund's portfolio will be magnified when the Fund uses leverage. Certain investments or trading strategies that involve leverage can result in losses that greatly exceed the amount originally invested.

f. Management Risk:

The Fund is subject to the risk that the Adviser may make poor security selections. The Adviser and its portfolio managers apply their own investment techniques and risk analyses in making investment decisions for the Fund and there can be no guarantee that these decisions will achieve the desired results for the Fund. In addition, the Adviser may select securities that underperform the relevant market or other funds with similar investment objectives and strategies.

g. Market Events Risk:

Markets are affected by numerous factors, including interest rates, the outlook for corporate profits, the health of the national and world economies, the fluctuation of other stock markets around the world, and financial, economic and other global market developments and disruptions, such as those arising from war, terrorism, market manipulation, government interventions, trading and tariff arrangements, defaults and shutdowns, political changes or diplomatic developments, public health emergencies and natural/environmental disasters. Such events can negatively impact the securities markets and cause the Fund to lose value.

Policy and legislative changes in countries around the world are affecting many aspects of financial regulation, and governmental and quasi-governmental authorities and regulators throughout the world have previously responded to serious economic disruptions with a variety of significant fiscal and monetary policy changes.

26	abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements (continued)
December 31, 2024

The impact of these changes on the markets, and the practical implications for market participants, may not be fully known for some time. In addition, economies and financial markets throughout the world are becoming increasingly interconnected. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to countries or sectors experiencing economic and financial difficulties, the value and liquidity of the Fund’s investments may be negatively affected by such events.

h. Mid-Cap Securities Risk:

Securities of medium-sized companies tend to be more volatile and less liquid than securities of larger companies.

i. Non-U.S. Taxation Risk:

Income, proceeds and gains received by the Fund from sources within foreign countries may be subject to withholding and other taxes imposed by such countries, which will reduce the return on those investments. Tax treaties between certain countries and the United States may reduce or eliminate such taxes.

If, at the close of its taxable year, more than 50% of the value of the Fund’s total assets consists of securities of foreign corporations, including for this purpose foreign governments, the Fund will be permitted to make an election under the Code that will allow shareholders a deduction or credit for foreign taxes paid by the Fund. In such a case, shareholders will include in gross income from foreign sources their pro rata shares of such taxes. A shareholder’s ability to claim an offsetting foreign tax credit or deduction in respect of such foreign taxes is subject to certain limitations imposed by the Code, which may result in the shareholder’s not receiving a full credit or deduction (if any) for the amount of such taxes. Shareholders who do not itemize on their U.S. federal income tax returns may claim a credit (but not a deduction) for such foreign taxes. If the Fund does not qualify for or chooses not to make such an election, shareholders will not be entitled separately to claim a credit or deduction for U.S. federal income tax purposes with respect to foreign taxes paid by the Fund; in that case the foreign tax will nonetheless reduce the Fund’s taxable income. Even if the Fund elects to pass through to its shareholders foreign tax credits or deductions, tax-exempt shareholders and those who invest in the Fund through tax-advantaged accounts such as IRAs will not benefit from any such tax credit or deduction.

j. Risks Associated with Foreign Securities and Currencies:

Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, and political or social instability or diplomatic

developments, which could adversely affect investments in those countries. Foreign securities may also be harder to price than U.S. securities.

Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers of industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.

The value of foreign currencies relative to the U.S. Dollar fluctuates in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency versus the U.S. Dollar reduces the value in U.S. Dollars of investments denominated in that foreign currency. This risk may impact the Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Adviser are unsuccessful.

k. Risks Associated with Emerging Markets:

The emerging countries' securities markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States. A high proportion of the securities of many companies in emerging countries may be held by a limited number of persons, which may limit the number of securities available for investment by the Fund. The limited liquidity of emerging country securities markets may also affect the Fund's ability to acquire or dispose of securities at the price and time it wishes to do so.

l. Risks Associated with Restricted Securities:

The Fund, subject to local investment limitations, may invest up to 30% of its assets (at the time of commitment) in illiquid equity securities, including securities of private equity funds (whether in corporate or partnership form) that invest primarily in emerging markets. When investing through another investment fund, the Fund will bear its proportionate share of the expenses incurred by that underlying fund, including management fees. Such securities are expected to be illiquid and may involve a high degree of business and financial risk and may result in substantial losses. Because of the current absence of any liquid trading market for these investments, the private equity funds may take longer to liquidate than would be the case for publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized on such sales could be substantially less than those originally paid by the Fund or the current carrying values and these differences could be material. Further, companies whose securities are not publicly traded may not be subject to the disclosures and other investor protection requirements applicable to companies whose securities are publicly traded.

abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements (continued)
December 31, 2024

m. Russia/Ukraine Risk:

In February 2022, Russia commenced a military attack on Ukraine. The outbreak of hostilities between the two countries and the threat of wider spread hostilities could have a severe adverse effect on the region and global economies, including significant negative impacts on the markets for certain securities and commodities, such as oil and natural gas. In addition, sanctions imposed on Russia by the United States and other countries, and any sanctions imposed in the future, could have a significant adverse impact on the Russian economy and related markets. The price and liquidity of investments may fluctuate widely as a result of the conflict and related events. How long the armed conflict and related events will last cannot be predicted. These tensions and any related events could have a significant impact on Fund performance and the value of the Fund's investments. As of December 31, 2024, the Fund holds 2 Russian securities that are all valued at zero.

n. Sector Risk:

To the extent that the Fund has a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector, the Fund may be more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.

Information Technology Sector Risk. To the extent that the information technology sector represents a significant portion of the Fund, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on their profit margins. Like other technology companies, information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face obsolescence due to rapid technological developments, frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Companies in the information technology sector are heavily dependent on patent and intellectual property rights. The loss or impairment of these rights may adversely affect the profitability of these companies.

Financial Sector Risk. To the extent that the financial sector represents a significant portion of the Fund's investments, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. Performance of companies in the financials sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, and decreased liquidity in credit markets. The impact of more stringent capital requirements, recent or future regulation of any individual financial company, or recent or future regulation of the financials sector as a whole cannot be predicted. In recent years, cyber attacks and technology malfunctions and failures have become increasingly frequent in this sector and have caused significant losses.

o. Small-Cap Securities Risk:

Securities of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Therefore, they generally involve greater risk.

p. Valuation Risk:

The price that the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund's valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lower than expected gain upon the sale of the investment. The Fund's ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

10. Contingencies

In the normal course of business, the Fund may provide general indemnifications pursuant to certain contracts and organizational documents. The Fund's maximum exposure under these arrangements is dependent on future claims that may be made against the Fund, and therefore, cannot be estimated; however, the Fund expects the risk of loss from such claims to be remote.

11. Tax Information

The U.S. federal income tax basis of the Fund's investments (including derivatives, if applicable) and the net unrealized appreciation as of December 31, 2024, were as follows:

Tax Cost of Securities	Unrealized Appreciation	Unrealized Depreciation	Net Unrealized Appreciation/ (Depreciation)
$312,116,998	$74,861,306	$(36,876,287)	$37,985,019

28	abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements (continued)
December 31, 2024

The tax character of distributions paid during the fiscal years ended December 31, 2024 and December 31, 2023 was as follows:

	December 31, 2024	December 31, 2023
Distributions paid from:
Ordinary Income	$771,595	$3,046,603
Return of Capital	19,021,599	16,746,591
Total tax character of distributions	$19,793,194	$19,793,194

As of December 31, 2024, the components of accumulated earnings on a tax basis were as follows:

Undistributed Ordinary Income	$-
Undistributed Long-Term Capital Gains	-
Total undistributed earnings	$-
Accumulated Capital and Other Losses	$-
Capital loss carryforward	$(115,283,571)*
Other currency gains	-
Other Temporary Differences	-
Unrealized Appreciation/(Depreciation)	35,063,281**
Total accumulated earnings/(losses) – net	$(80,220,290)

Amounts listed as “–” are $0 or round to $0.

On December 31, 2024, the Fund had a net capital loss carryforward of $(115,283,571) which will be available to offset like amounts of any future taxable gains. The Fund is permitted to carry forward capital losses for an unlimited period and capital losses that are carried forward will retain their character as either short-term or long-term capital losses. The breakdown of capital loss carryforwards are as follows:

Amounts	Expires
$30,644,594	Unlimited (Short—Term)
84,638,977	Unlimited (Long—Term)

**The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable to tax deferral of wash sales, passive foreign investment company gain/(loss) and partnership adjustments.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. Accordingly, the table below details the necessary reclassifications, which are a result of permanent differences primarily attributable to prior year post-financial statement adjustments. These reclassifications have no effect on net assets or NAVs per share.

Paid-in Capital	Distributable Earnings/ (Accumulated Loss)
$15,818	$(15,818)

12. Segment Reporting

In this reporting period, the Fund adopted FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to

Reportable Segment Disclosures (“ASU 2023-07”). Adoption of the new standard impacted disclosures only and did not affect the Fund’s financial position nor the results of its operations. Operating segments are components of a public entity that engage in business activities from which it may recognize revenues and incur expenses, have discrete financial information available, and have their operating results regularly reviewed by the public entity’s chief operating decision maker (“CODM”) when assessing segment performance and making decisions about segment resources. The Chief Financial Officer of the Fund acts as the Fund’s CODM. The CODM monitors the operating results of the Fund as a whole, and the Fund’s asset allocation is managed in accordance with its Prospectus. The Fund operates as a single operating and reporting segment pursuant to its investment objective and principal investment strategy. The Fund’s portfolio composition, total returns, expense ratios and changes in net assets used by the CODM to assess segment performance and make resource allocations are consistent with the information presented within the Fund's financial statements. Segment assets are reflected on the Fund’s Statement of Assets and Liabilities as “Total Assets” and

abrdn Emerging Markets ex-China Fund, Inc.

Notes to Financial Statements (concluded)
December 31, 2024

significant segment expenses are listed on the Statement of Operations.

13. Subsequent Events

Effective February 24, 2025, the Fund's name changed from abrdn Emerging Markets Equity Income Fund, Inc. to abrdn Emerging Markets ex-China Fund, Inc. In addition, effective February 24, 2025, the Fund changed its non-fundamental 80% investment policy to, under normal circumstances, invest at least 80% of its net assets (plus any borrowings for investment purposes) in emerging markets (excluding China) equity securities and the MSCI Emerging Markets ex-China Index replaced the MSCI Emerging Markets Index as the benchmark against which the Fund compares its performance. Subsequent to the reporting period, and in connection with these changes, the Fund transitioned its portfolio consistent with its change to an emerging market ex-China strategy, which would include the

sale of Chinese securities held by the Fund. Any realized capital gains generated from these sales would be offet by the Fund's capital loss carryforward listed in Notes to Financial Note 11.

The Fund announced on January 21, 2025, the commencement of the cash tender offer to purchase up to 10,150,355 shares, representing approximately 20% of the Fund's outstanding shares, at a price per share equal to 98% of the Fund's net asset value ("NAV") per share as determined by the Fund on the next business day immediately following the day the tender expires. The offer commenced at 12:01 am, January 21, 2025, and expired at 5:00 p.m. New York City time on February 20, 2025. In connection with the tender offer, the Fund purchased 10,150,355 shares for cash payment at a price equal to $6.07. The tender offer was oversubscribed and all tenders of shares were subject to pro ration (at a ratio of approximately 0.27624999) in accordance with the terms of the tender offer.

30	abrdn Emerging Markets ex-China Fund, Inc.

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors
abrdn Emerging Markets ex-China Fund, Inc.:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of abrdn Emerging Markets ex-China Fund, Inc. (formerly, abrdn Emerging Markets Equity Income Fund, Inc.) (the Fund), including the portfolio of investments, as of December 31, 2024, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2024, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2024 by correspondence with the custodian and general partners/managers of underlying investments, or by other appropriate auditing procedures where replies were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more abrdn investment companies since 2009.

Columbus, Ohio
February 27, 2025

abrdn Emerging Markets ex-China Fund, Inc.

Federal Tax Information: Dividends and Distributions (Unaudited)

Designation Requirements

Of the distributions paid by the Fund from ordinary income for the year ended December 31, 2024, the following percentages met the requirements to be treated as qualifying for the corporate dividends received deduction and qualified dividend income, respectively.

Dividends Received Deduction 3.08%

Qualified Dividend Income 100.00%

The above amounts are based on the best available information at this time. In early 2025, the Fund notified applicable shareholders of final amounts for use in preparing 2024 U.S. federal income tax forms.

For the fiscal year ended December 31, 2024, the Fund intends to pass through to its shareholders the following amounts, or maximum amounts allowable by law, of foreign source income earned and foreign taxes paid of $1,515,194 and $1,979,802, respectively.

32	abrdn Emerging Markets ex-China Fund, Inc.

Additional Information Regarding the Fund (Unaudited)

Recent Changes

The following information is a summary of certain changes during the fiscal year ended December 31, 2024. This information may not reflect all of the changes that have occurred since you purchased the Fund.

During the applicable period, there have been: (i) no material changes to the Fund’s investment objective and policies that constitute its principal portfolio emphasis that have not been approved by shareholders; (ii) no material changes to the Fund’s principal risks; and (iii) no changes to the Fund’s charter or by-laws that would delay or prevent a change of control that have not been approved by shareholders. Subsequent to the reporting period, the Fund’s name and investment policies were amended consistent with its change to an emerging market ex-China strategy, as set forth in additional detail below.

Changes to Persons Primarily Responsible for Day-to-Day Management of the Fund

abrdn’s Global Emerging Markets Equity team is responsible for the day-to-day management of the Fund. Nick Robinson, Devan Kaloo and Xin-Yao Ng are the members of the team with the most significant responsibility for day-to-day management of the Fund.

During the fiscal year ended December 31, 2024, Kristy Fong ceased serving as a member of the Fund’s portfolio management team effective April 2024. Additionally, Devan Kaloo and Xin-Yao Ng were added as members of the Fund’s portfolio management team effective April 2024 and September 2024, respectively. Nick Robinson has served as a portfolio manager of the Fund since 2022.

Fund Name Change and Changes to Non-Fundamental Investment Policy

As previously announced, on December 10, 2024, the Fund’s Board approved a change in the name of the Fund from abrdn Emerging Markets Equity Income Fund, Inc. to the abrdn Emerging Markets ex-China Fund, Inc., and corresponding changes to the Fund’s investment policies, including its 80% investment policy, as set forth

below, each such change effective February 24, 2025 (the “Effective Date”).

	Current	New
Fund Name	abrdn Emerging Markets Equity Income Fund, Inc.	abrdn Emerging Markets ex-China Fund, Inc.
80% Investment Policy	The Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in emerging markets equity securities.	Under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in emerging markets (excluding China) equity securities.
Benchmark	MSCI Emerging Markets Index (Net Daily Total Return)	MSCI Emerging Markets ex-China Index (Net Daily Total Return)

The Fund’s strategies and risks were amended as of the Effective Date consistent with its change to an emerging market ex-China strategy. The Fund remains a non-diversified, closed-end management investment company whose objective is to provide both current income and long-term appreciation. A summary of the Fund’s investment objectives, strategies, policies and risks, inclusive of the amendments as of the Effective Date, is set forth below.

Investment Objective, Strategies and Policies

Investment Objective. The Fund seeks to provide both current income and long-term capital appreciation. The Fund’s investment objective is not fundamental, and may be changed by the Fund’s Board without shareholder approval.

Principal Investment Strategy. Under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in emerging markets (excluding China) equity

abrdn Emerging Markets ex-China Fund, Inc.

Additional Information Regarding the Fund (Unaudited) (continued)

securities. If the Fund’s Board elects to change this 80% policy, the Fund will provide shareholders with at least 60 days’ prior notice.

An emerging market (excluding China) country is any country included within the MSCI Emerging Markets ex-China Index or determined to be eligible for inclusion in the MSCI Emerging Markets ex-China Index.

The definition of equity securities includes:

•	common stock and preferred stock (including convertible preferred stock),

•	stock purchase warrants and rights,

•	equity interests in trusts and partnerships, and

•	American, Global or other types of Depositary Receipts of emerging market securities

Emerging market (excluding China) securities include securities that are issued by companies or other issuers that Fund management determines meet one or more of the following criteria:

(i) the company is organized under the laws of an emerging market (excluding China) country,

(ii) the company has its principal office in, or management is located in, an emerging market (excluding China) country, and/or

(iii) the company has its principal securities trading market in an emerging market (excluding China) country.

The Fund may also invest without limit in those markets deemed by the Investment Adviser to be “Frontier” markets, which are investable markets with lower total market capitalizations and liquidity than the more developed emerging markets.

From time to time, the Fund may have a significant amount of assets invested in securities of issuers of a single country or of a number of countries in a particular geographic region and therefore may be subject to a greater extent to risks associated therewith. The Fund currently anticipates that it may invest a significant amount of its assets in India and Taiwan.

The Fund uses leverage as part of its investment strategy through senior securities representing indebtedness. The Fund may use leverage through senior securities representing indebtedness up to 33 1/3% of its total assets (including the amount obtained through leverage), although the Investment Adviser currently intends to utilize leverage generally in the amount of 5% – 15% of the Fund’s total assets and does not currently expect such leverage to actively exceed 20% of total assets. The Fund is permitted to engage in other transactions, such as reverse repurchase agreements and issuance of debt securities or preferred securities, which have the effect of leverage.

The Fund may invest in securities of any market capitalization. In selecting companies for investment by the Fund, the Investment

Adviser will consider factors such as overall growth prospects, competitive positions in domestic and export markets, technology, research and development, productivity, labor costs, raw material costs and sources, profit margins, return on investment, capital resources, government regulation and management.

The Fund will not invest 25% or more of its total assets in the securities of companies in the same industry, although the Fund may invest in U.S. government securities without regard to this limitation. This policy may only be changed upon the affirmative vote of the holders of a majority of the Fund’s outstanding voting securities. The Adviser will define industries according to any one or more widely recognized third-party industry classification systems and may otherwise define industries consistent with applicable law and SEC guidance. Third-party industry classification systems may include the Bloomberg Industry Classification Standard (BICS), the Standard and Poor’s Global Industry Classification Standard (GICS) and Barclays Live. The Adviser will also have broad authority to make exceptions from third-party industry classification systems and determine for the Fund how to classify issuers within or among industries based on such issuer’s characteristics and subject to applicable law.

Although the Fund will not invest 25% of more of its total assets in the securities of companies in the same industry, the Fund may invest in securities of any market sector and may hold a significant amount of securities of companies, from time to time, within a single sector. Currently, the Fund expects to be heavily exposed to the financial and information technology sectors.

The Fund may invest up to 30% of its total assets in private placements of equity securities. Securities that are not publicly traded in the United States but that can be sold to “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “1933 Act”), will not be subject to these percentage limitations if these securities are deemed liquid pursuant to procedures adopted by the Fund’s Board and delegated to the Investment Adviser. Rule 144A Securities (defined below) and Regulation S Securities (defined below) may be freely traded among certain qualified institutional investors, such as the Fund, but their resale in the U.S. is permitted only in limited circumstances.

To the extent its assets are not invested as described above, the Fund may invest the remainder of its assets in:

•	debt securities denominated in the currency of an emerging country or issued or guaranteed by an emerging country company or the government of an emerging country,

•	equity or debt securities of corporate or governmental issuers located in developed countries, and

•	short-term and medium-term debt securities of the type described below under “Temporary Investments.”

34	abrdn Emerging Markets ex-China Fund, Inc.

Additional Information Regarding the Fund (Unaudited) (continued)

The Fund’s assets may be invested in debt securities when the Investment Adviser believes that, based upon factors such as relative interest rate levels and foreign exchange rates, such debt securities offer opportunities to provide both current income and long-term capital appreciation.

The Fund may invest in debt securities that are rated no lower than A-2 by Standard & Poor’s Rating Group or P-2 by Moody’s Investor Services or the equivalent by another rating service or, if unrated, deemed to be of equivalent quality by the Investment Adviser. The Fund may invest in securities of any maturity.

For cash management purposes, the Fund may invest up to 25% of its net assets in certain short-term investments described below and, for temporary defensive purposes, may invest up to 100% of its assets in those short-term instruments.

The Fund’s income distributions are supplemented by realized capital gains and, to the extent necessary, paid-in capital, which is a nontaxable return of capital.

In seeking to achieve the Fund’s investment objective, the Investment Adviser invests in quality companies and is an active, engaged owner. The Investment Adviser evaluates every company against quality criteria and build conviction using a team-based approach and peer review process. The quality assessment covers five key factors: (1) durability of the business model, (2) the attractiveness of the industry, (3) the strength of financials, (4) the capability of management, and (5) the most material Environmental, Social and Governance (“ESG”) factors impacting a company. Examples of ESG factors considered by the Investment Adviser include, but are not limited to, carbon emissions, climate risks, labor management, employee safety and corporate governance. The specific factors considered may vary depending on the type of company being evaluated. As ESG information is just one investment consideration, ESG considerations generally are not solely determinative in any investment decision made by the Investment Adviser.

Through fundamental research, supported by a global research presence, the Investment Adviser seeks to identify companies whose quality is not yet fully recognized by the market.

The Investment Adviser may sell a security whe

SEC Form N-CSR filed by abrdn Emerging Markets ex-China Fund Inc.