Annual Report 2024

24 China Merchants China Direct Investments Limited Annual Report 2024 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) On 22 April 2024, the China Securities Regulatory Commission (“ CSRC ”) issued a Notice of Filing for Overseas Offering and Listing by Pony AI, stating that it had received filing materials from Pony AI for an overseas offering and listing. Pony AI intended to apply for listing on the NASDAQ or the New York Stock Exchange of the United States. This goal was achieved on 27 November 2024, when Pony AI successfully issued American Depository Shares and was listed on the NASDAQ. According to the listing documents, Pony AI recorded a net loss of US$148 million, US$125 million and US$94 million for 2022, 2023 and the nine months ended 30 September 2024, respectively. On 25 March 2025, Pony AI announced that its unaudited net loss for 2024 was US$274 million, compared to a net loss of US$125 million for last year. Arashi Vision Inc. (“Arashi Vision”) was established in Shenzhen, Guangdong in July 2015 and is striving to become a global leader engaged in the research, development and manufacture of 360-degree video products. The Fund invested RMB20 million (equivalent to US$2.83 million) and RMB10 million (equivalent to US$1.44 million) in September and November 2019, respectively, bringing the Fund’s total investment in Arashi Vision to RMB30 million (equivalent to US$4.27 million), for a 1.625% equity interest in the company. As of the end of 2024, the carrying value of the Fund’s interest in Arashi Vision was US$35.02 million, representing an increase of 93.27% over US$18.12 million at the end of last year. The Fund’s unrealised gain attributable to its investment in Arashi Vision for 2024 was US$17.33 million, up 41.24% year-over-year. Arashi Vision submitted an application for listing on the SSE STAR Market on 23 October 2020, which was then reviewed and approved by the listing committee on 16 September 2021. The company subsequently applied for registration with the CSRC on 28 January 2022 and obtained the CSRC’s approval on 26 February 2025. According to the listing documents, Arashi Vision recorded a net profit of RMB266 million, RMB407 million, RMB830 million and RMB842 million for 2021, 2022, 2023 and the nine months ended 30 September 2024, respectively. Arashi Vision launched several new products in 2024 to target different user scenarios and needs. In April 2024, it launched the Insta360 X4 8K panoramic sports camera (X4 is the first 8K panoramic camera of Insta360 for mass consumers) and the X3X AI panoramic camera. In June 2024, it launched the Insta360 GO 3S 4K thumb camera. In September 2024, it launched the Insta360 Link 2 and Link 2C AI intelligent webcams, providing the most cost- effective professional-grade shooting solutions for live broadcasts, content creation, conferences and other scenarios. In October 2024, it launched its flagship wide-angle sports camera, Ace Pro 2, which is the first sports camera equipped with AI twin core, a breakthrough in support for 4K60fps night video recording. In December 2024, it launched its first video conferencing all-in-one machine, Connect, integrating 4K dual cameras, 14-microphone arrays and speakers, enabling to small to medium conference scenarios for 6 to 14 people, while enhancing the enterprise video conferencing experience. In 2024, Arashi Vision’s global brand influence continued to increase. In March 2024, Fast Company announced the list of “2024 World’s Most Innovative Companies.” Arashi Vision, as a representative of Chinese technology companies, ranked among the top three in the consumer electronics field. This is the second time in four years that Arashi Vision has been chosen. This year, tech giants such as Google and Apple were also recognised.