Annual Report 2024

28 China Merchants China Direct Investments Limited Annual Report 2024 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) Beijing Huashun Xin’an Technology Co., Ltd. (“Huashun Xin’an”) was established in Beijing in 2018 and is a cyber security company with a search engine for cyberspace resources. It is focused on the fields of big data security and cyberspace resources for surveying and mapping, and is primarily engaged in the research and development of technologies and products in the field of cyber information security. The Fund completed capital contributions of RMB24 million (equivalent to US$3.67 million) and RMB6 million (equivalent to US$0.93 million) in April and July 2021, respectively, for an aggregate investment of RMB30 million (equivalent to US$4.60 million). In April 2022, in a new round of equity financing carried out by Huashun Xin’an, the Fund increased its investment in Huashun Xin’an by RMB6.50 million (equivalent to US$1.02 million), for an aggregate investment of RMB36.50 million (equivalent to US$5.62 million), amounting to a 4.295% equity interest in Huashun Xin’an as of 31 December 2024. As of the end of 2024, the carrying value of the Fund’s interest in Huashun Xin’an was US$0.59 million, representing a decrease of 60.40% from the value at the end of last year of US$1.49 million. In May 2024, the well-known security media platform, Anzer, released the “2024 China Cyber Security Product User Survey Report,” in which Huashun Xin’an was recognised as the “New Cutting-edge Cyber Security Manufacturer Brand of the Year” and selected as the “Top 10 Most Satisfied New Cutting-edge Manufacturers for Corporate Users.” In June 2024, China’s authoritative digital industry research institute, Digital World Consulting, released a report entitled “Risk-based Vulnerability Management Capability Guide,” which provided a deep market analysis of risk- based vulnerability management (RBVM), along with an overview of the relevant products, services and solutions offered by domestic security enterprises, with a goal to help frontline users understand the current capabilities of domestic security enterprises. Huashun Xin’an was successfully featured in the article due to its excellent capabilities in cyberspace surveying and mapping, as well as vulnerability management. In June 2024, at the Work Summary 2023 of the China National Vulnerability Database of Information Security (CNNVD) and Excellent Support Unit Commendation Conference, Huashun Xin’an received two prestigious honours, namely the “Excellent Technical Support Unit of 2023” and the “Outstanding Contribution Award for Vulnerabilities Elimination and Control in 2023.” In September 2024, Huashun Xin’an passed a review of the third batch of specialised and new “Little Giant” enterprises of Beijing. In December 2024, at the “2024 Telecom and Internet Industry Cyber Security Annual Conference,” hosted by the China Association of Communication Enterprises, and jointly organised by the Communications and Cyber Security Professional Committee of the China Association of Communication Enterprises and the China Academy of Information and Communications Technology, Huashun Xin’an was awarded the “One-Star Technical Support Unit” for its general network product security vulnerability professional database (NVDB) on the cybersecurity threat and vulnerability information sharing platform.