Annual Report 2024

14 China Merchants China Direct Investments Limited Annual Report 2024 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) China Merchants Bank Co., Ltd. (“CMB”) is China’s first joint-stock commercial bank, with its headquarters in Shenzhen, Guangdong and with its shares listed on the Shanghai Stock Exchange since 2002 and on the Hong Kong Stock Exchange since 2006. As of 31 December 2024, the Fund held 55.20 million A shares of CMB, accounting for 0.219% of the total issued share capital of CMB, with a corresponding investment cost of RMB154.61 million (equivalent to US$19.79 million). In July 2024, the Fund received a cash dividend of RMB109 million from CMB for 2023. As of the end of 2024, the carrying value of the Fund’s interest in CMB was US$301.77 million, representing an increase of 39.24% over US$216.73 million at the end of last year. The Fund’s unrealised gain attributable to its investment in CMB for 2024 was US$89.05 million, while the relevant amount for 2023 was negative US$74.02 million. On 26 March 2025, CMB announced that its audited net profit for 2024 was RMB148.4 billion, up 1.22% year-over- year. According to a resolution passed at the 2020 shareholders meeting, CMB was authorised to issue capital bonds of an amount not to exceed RMB150 billion, valid through 31 December 2023. During this period, CMB issued undated capital bonds of RMB73 billion in total. At the 2023 shareholders meeting convened in June 2024, a new resolution was passed to authorise CMB to issue capital bonds in the amount of RMB150 billion. Pursuant to the new authorisation, CMB can, with reference to the bank’s actual operations, issue undated capital bonds and/or tier- 2 capital bonds scientifically and reasonably after obtaining approval from the relevant regulatory authorities for the issuance, so as to replenish its other tier-1 capital and/or tier-2 capital. The shareholders meeting also authorised the board of directors, with respect to the aforementioned issuance of RMB150 billion, to initiate the issuance of capital bonds at its discretion, to determine the specific issuance plan and to handle all matters incidental to the issuance. Meanwhile, the board of directors delegated to the senior management of CMB the power to make decisions directly affecting the issuance of new capital bonds up to a total of RMB77 billion, with reference to the requirements of the resolution. In July 2024, “The Bankers” of the UK announced the list of the “Top 1000 World Banks 2024” in which CMB ranked 10th, breaking into the top ten for the first time and demonstrating further improvement in the comprehensive strength of CMB. In October 2024, “International Private Banker” announced the results of its assessment of the Global Best Private Banks, and CMB was awarded the “Outstanding Global Private Bank - Asia Pacific.” In November 2024, CMB completed an issuance of undated capital bonds of RMB30 billion in the Chinese national interbank bond market. The proceeds from this issuance of the bonds will be used to replenish the bank’s other tier-1 capital, in accordance with applicable laws and as approved by regulatory authorities. In 2024, the Fund did not dispose of any A shares of CMB.