Annual Report 2024

China Merchants China Direct Investments Limited Annual Report 2024 9 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) LIQUIDITY, FINANCIAL RESOURCES, GEARING AND COMMITMENTS The Fund’s cash and cash equivalents increased by 258.63%, from US$8.63 million at the end of last year to US$30.95 million (representing 3.84% of the Fund’s total assets) as of 31 December 2024, due mainly to a partial disposal of an equity interest in China UnionPay Co., Ltd. during the year. As of 31 December 2024, the Fund had no outstanding bank loans (31 December 2023: Nil). As of 31 December 2024, the Fund had no commitments (31 December 2023: Nil). EXPOSURE TO FLUCTUATIONS IN EXCHANGE RATES AND RELATED HEDGES Most of the Fund’s investments are located in China where the official currency is the Renminbi (“ RMB ”). The conversion rate of RMB against the US dollar recorded a decrease of 1.49% in 2024, which had a negative impact on the Fund since it holds a considerable amount of assets denominated in RMB. The Fund currently does not have any foreign currency hedging policy. However, the Fund continues to monitor foreign exchange exposure and will consider hedging significant foreign currency exposure should the need arise. EMPLOYEES Other than a qualified accountant whose remuneration package is determined and borne by the Investment Manager, the Fund has no employees. The Investment Manager handles the portfolio and day-to-day administration of the Fund.