Annual Report 2024

8 China Merchants China Direct Investments Limited Annual Report 2024 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS OVERALL PERFORMANCE China Merchants China Direct Investments Limited and its subsidiaries (the “ Fund ”) recorded a profit attributable to equity shareholders of US$120.35 million for the year ended 31 December 2024, compared to a profit attributable to equity shareholders of US$5.73 million for last year, representing an increase of US$114.62 million or 2,000.35% – with the profit increase largely attributable to a significant rise in the overall value of the financial assets at fair value through profit or loss (the “ Financial Assets ”). As of 31 December 2024, the net assets of the Fund were US$647.38 million (31 December 2023: US$557.94 million), with a net asset value per share of US$4.250 (31 December 2023: US$3.663). The net gain on the Financial Assets for the year was US$137.50 million, compared to a net loss of US$9.03 million for last year. Looking deeper, the Fund’s listed and unlisted investments recorded net gains of US$102.27 million and US$35.23 million, respectively. For more information on the change in fair value of each of the listed and unlisted investments, please see the section titled “Review of Investments” in this Investment Manager’s Discussion and Analysis. Total investment income for the year decreased by 6.96% to US$17.79 million (2023: US$19.12 million) as compared to last year, due mainly to a decrease in dividend income from investments. ACQUISITIONS AND EXITS OF INVESTMENTS In 2024, the Fund continued to seek out and rigorously evaluate investment opportunities. During the year, the Fund made investments in the financial services industry and information technology industry. The investments completed include the following: In September 2024, the Fund acquired 2.12 million H shares of China International Capital Corporation Limited (“ CICC ”) at an average price of HK$8.05 per share on the secondary stock market for an aggregate invested amount of HK$17.06 million (equivalent to US$2.19 million), accounting for 0.044% of the total issued share capital of CICC. CICC is a leading securities firm in China. On 16 December 2024, the Fund entered into a cornerstone investment agreement in relation to global offering of Xunfei Healthcare Technology Co., Ltd. (“ Xunfei Healthcare ”), pursuant to which the Fund subscribed for the H shares of Xunfei Healthcare at the offer price (i.e. HK$82.80), in the amount of HK$28 million (equivalent to US$3.61 million). According to the announcement on allotment results of Xunfei Healthcare dated 27 December 2024, the Fund was allocated 338,150 H shares, accounting for 0.28% of the issued share capital of Xunfei Healthcare after its global offering. Together with the existing investment, the Fund has cumulatively invested an equivalent amount of RMB136 million (equivalent to US$20.01 million) in Xunfei Healthcare, accounting for 3.506% of the issued share capital of Xunfei Healthcare. In addition, the Fund did not fully exit from any investments during the year.