Annual Report 2024

16 China Merchants China Direct Investments Limited Annual Report 2024 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) JIC Leasing Co., Ltd. (“JIC Leasing”) was established in Beijing in 1989 and is a leading independent finance leasing firm in China, principally engaged in finance leasing for businesses in a wide range of industries, including information technology; high-end equipment manufacturing; and healthcare, environmental protection and new energy. The Fund invested RMB246 million (equivalent to US$38.78 million) in October 2015 and held a 4.98% equity interest in JIC Leasing as of 31 December 2024. As of the end of 2024, the carrying value of the Fund’s interest in JIC Leasing was US$22.99 million, representing an increase of 63.63% over US$14.05 million at the end of last year. The Fund’s unrealised gain attributable to its investment in JIC Leasing for 2024 was US$9.24 million, while the relevant amount for 2023 was negative US$1.92 million. In 2024, JIC Leasing continued to focus on its main business, while seeking to adhere to a prudent and steady business management style. At all times, JIC Leasing has sought to develop its businesses in alignment with the national strategic direction as well. The case study of “Constructing New Service Model of Industry Chain for Better Developing Inclusive Finance” by JIC Leasing was honoured with the 2023 Serving National Strategy - “Torch Award.” In addition, JIC Leasing was awarded “The 7th China Finance Leasing Tengfei Award - The Most Influential Finance Leasing Company,” for its outstanding performance in serving national strategies and the real economy. For 2024, JIC Leasing recorded an unaudited net profit of RMB320 million, up 0.71% year-over-year. China International Capital Corporation Limited (“CICC”) was established in 1995, with its headquarters in Beijing. It is a leading securities firm in China, with its shares listed on the Hong Kong Stock Exchange since 2015 and on the Shanghai Stock Exchange since 2020. In September 2024, the Fund acquired 2.12 million H shares of 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 as of 31 December 2024. Subsequent to the balance sheet date, in February 2025, the Fund sold its entire holding of 2.12 million H shares of CICC for net proceeds of HK$33.98 million (equivalent to US$4.37 million). In December 2024, the Fund received a cash interim dividend (net of tax) of HK$0.19 million from CICC for 2024. As of the end of 2024, the carrying value of the Fund’s interest in CICC was US$3.50 million. On 20 October 2024, CICC announced that its unaudited net profit for the first three quarters of 2024 was RMB2.858 billion, down 37.97% year-over-year.