Annual Report 2021

China Merchants China Direct Investments Limited Annual Report 2021 26 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) From 1 to 11 November 2021, the number and value of online payment transactions processed by China UnionPay increased by 20.47% and 17.43% year-on-year, respectively. China UnionPay provides a solid payment guarantee for the smooth processing of the “Double 11” transaction peak, and also provides users with a safe, fast, efficient and convenient payment experience. CASREV FUND III-RMB L.P. (“CASREV Fund III”) was established in Shenzhen, Guangdong in February 2020, with an investment horizon of 8 to 10 years and with a total fund subscription amount of RMB6 billion (presently, the paid-in capital amounts to RMB4.5 billion). The major investment targets of CASREV Fund III include enterprises related to smart manufacturing, smart products and services, big data and cloud computing, AI, Internet of Things (IoT), blockchain, biological engineering, chips and sensors, operating system, kernel modules, communication networks, materials and other emerging technologies. The general partner and investment manager of CASREV Fund III is CAS Investment Management Co., Ltd., which is responsible for defining and executing the investment strategy for CASREV Fund III, as well as for managing their operations. The Fund holds a beneficial interest in CASREV Fund III via CASRF Fund L.P. The Fund has committed to subscribe to an aggregate of RMB50 million by installment, representing 1.11% of the paid-in capital of CASREV Fund III. The Fund completed capital contributions of RMB12.50 million (equivalent to US$1.85 million), RMB12.50 million (equivalent to US$1.90 million) and RMB12.50 million (equivalent to US$1.93 million) in September 2020, November 2020 and August 2021, respectively, representing an aggregate of RMB37.50 million (equivalent to US$5.68 million) or 75% of the subscription amount committed by the Fund. As of the end of 2021, the carrying value of the Fund’s interest in CASREV Fund III was US$4.84 million, representing an increase of 26.37% over US$3.83 million at the end of last year. Through the end of December 2021, CASREV Fund III has made investments in forty-five projects with a total approved investment amount of RMB2.78 billion. Among these, one project has been reviewed and approved for registration on the SSE STAR Market, and is presently waiting to complete its listing. Three other projects have submitted IPO application materials to the Growth Enterprise Market and the SSE STAR Market in Mainland China, and another five projects are expected to submit IPO application materials in 2022. Flexiv Ltd. (“Flexiv”) was established in Silicon Valley, the United States, in June 2016 and is a technology company in China that focuses on the development and application of adaptive robots. It, based on Flexiv robotic systems, provides innovative turnkey solutions and services for its customers in a range of industries. In December 2020, the Fund invested US$5 million for a 1.67% equity interest in Flexiv. As of the end of 2021, the carrying value of the Fund’s interest in Flexiv was US$5.50 million, representing an increase of 10.00% over US$5 million at the end of last year. Flexiv has continued to control costs, improve stability, and release software updates for its primary product, Rizon Robot (Rizon 4) with a 4 kg load. In addition, in November 2021, it received a European CE certification and a North American ETL certification, issued by the well-known international third-party certification authority, Intertek, thereby becoming the industry’s first ETL certified seven-axis force-controlled adaptive robot.