Annual Report 2024

China Merchants China Direct Investments Limited Annual Report 2024 27 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) CASREV FUND III-RMB L.P. (“CASREV Fund III”) was established in Shenzhen, Guangdong in February 2020, with an investment horizon of 8 to 10 years and with a total fund subscription amount of RMB6 billion (presently, the paid-in capital amounts to RMB4.5 billion). The major investment targets of CASREV Fund III include enterprises related to smart manufacturing, smart products and services, big data and cloud computing, AI, Internet of Things (IoT), blockchain, biological engineering, chips and sensors, operating system, kernel modules, communication networks, materials and other emerging technologies. The general partner and investment manager of CASREV Fund III is CAS Investment Management Co., Ltd., which is responsible for defining and executing the investment strategy for CASREV Fund III, as well as for managing their operations. The Fund holds a beneficial interest in CASREV Fund III via CASRF Fund L.P. The Fund has committed to subscribe to an aggregate amount of RMB50 million by installment, representing 1.11% of the paid-in capital of CASREV Fund III. Since September 2020, the Fund had made successive capital contributions to CASREV Fund III for an aggregate amount of RMB50 million (equivalent to US$7.50 million), representing 100% of the subscription amount committed by the Fund. In addition, through the end of December 2024, the Fund received cash distributions from CASREV Fund III in a cumulative amount of RMB18.04 million. As of the end of 2024, the carrying value of the Fund’s interest in CASREV Fund III was US$9.35 million, representing a decrease of 14.85% from the value at the end of last year of US$10.98 million. Through the end of December 2024, the investment committee of CASREV Fund III has approved a total of sixty-nine investment projects, for a total approved investment amount of RMB4.27 billion, of which RMB4.27 billion has been paid. At present, among the companies invested in by CASREV Fund III, six have been listed, of which the stocks of two companies have been completely sold for a full exit. Furthermore, one additional company plans to submit an IPO application and list in the United States. Flexiv Ltd. (“Flexiv”) was established in Silicon Valley, the United States, in June 2016 and is a technology company in China that focuses on the development and application of adaptive robots. It, based on Flexiv robotic systems, provides innovative turnkey solutions and services for its customers in a range of industries. The Fund invested US$5 million in December 2020 and held a 1.58% equity interest in Flexiv as of 31December 2024. As of the end of 2024, the carrying value of the Fund’s interest in Flexiv was US$5.10 million, representing a decrease of 15.28% from the value at the end of last year of US$6.02 million. In 2024, Flexiv’s revenue exceeded RMB100 million, increased by 240% year-over-year. The existing products, Rizon and Grav, continued to be delivered, while cost reductions and efficiency enhancements for the products have been achieved through the successful self-development of more spare parts, such as motors. The new product, Moonlight (a parallel self-adjusting robot), was launched in volume in September. At the same time, the company has signed recurring purchase orders with a number of key customers, and has also established stable cooperative relationships with a number of leading automotive companies and tier-1 manufacturers. In May 2024, Flexiv and Siemens reached a strategic cooperation agreement. Flexiv officially joined the Siemens Xcelerator ecosystem to jointly create adaptive robotic application solutions for a range of industries. In December 2024, Noematrix, the embodied intelligence subsidiary strategically incubated by Flexiv, announced the completion of the Pre-A+ round of equity financing, meaning a total of three rounds of equity financing were completed during the year, for a cumulative raise of hundreds of millions of yuan RMB.