Annual Report 2024

30 China Merchants China Direct Investments Limited Annual Report 2024 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) Beijing Hanwei Innovation Technology Co., Ltd. (“Hanwei”) was established in Shanghai in June 2019. It is a fabless IC (Integrated Circuit) design company focusing on ultra-wideband (UWB) technology, and its high-precision positioning products developed primarily for consumer goods such as automotives, smartphones and wearables. The Fund invested RMB50 million (equivalent to US$7.02 million) in July 2023 for a 6.42% equity interest in Hanwei. As of the end of 2024, the carrying value of the Fund’s interest in Hanwei was US$5.31 million, representing a decrease of 24.79% from the value at the end of last year of US$7.06 million. In 2024, the company’s second-generation UWB product, MK8080 test chip, was successfully taped-out. The first- generation product, MK8000, has started mass production for key customers’ applications in the Industrial Internet of Things (IoT), and other customers’ applications are being advanced in an orderly manner. In terms of automotive applications, MK8000 obtained AEC-Q100 certification in August for automotive use, and the company has signed a joint research and development contract with a well-known automotive company to explore the application of UWB in car keys and radar. Moonshot AI Ltd. (“Moonshot AI”) was established in Cayman Islands in May 2023. It is a startup company that is focused on the research and development of general-purpose large multimodal model and end-customer applications. The Fund invested US$10 million in December 2023 for a 1.29% equity interest in Moonshot AI. Moonshot AI completed three new rounds of equity financing in February, March and June 2024, respectively, and the equity interest held by the Fund in Moonshot AI was diluted from 1.29% to 0.67%, accordingly. As of the end of 2024, the carrying value of the Fund’s interest in Moonshot AI was US$15.35 million, representing an increase of 53.50% over US$10 million at the end of last year. Since 2024, the large model products of Moonshot AI have continued to be iteratively upgraded. In March 2024, Moonshot AI announced another breakthrough in the “long-text” field, upgraded by an order of magnitude to 2 million Chinese characters in lossless context length and, in a networking mode greatly upgraded the speed of first word return, logical reasoning capability (especially in mathematical and program design capabilities), and the accuracy of Chinese-English translation. In August 2024, Moonshot AI released an enterprise-level application programming interface (API), and in September opened the API network search function, to further enhance key customers’ business of enterprise-client end (B-end). In October 2024, Moonshot AI released the “Kimi Exploration Edition” with AI autonomous search capabilities, which can handle complex problems hierarchically by simulating human reasoning and thinking processes, and can also accurately read more than 500 pages in a single search, providing users with more comprehensive and accurate answers. In December 2024, Moonshot AI released the Visual Thinking Model, k1, which natively supports end-to- end image understanding and thinking chain technology. In the benchmark ability test sets of basic science disciplines such as mathematics, physics, and chemistry, the performance of the initial k1 model has exceeded some global benchmark models. The traffic data of Moonshot AI constantly ranks in the forefront of similar products, domestically. The latest data from the AI product list (aicpb.com) shows that, in December 2024, the web version of Kimi intelligent assistant had 38.37 million visits, ranking 3rd among similar products in China. In addition, the number of monthly active users (MAU) of Kimi intelligent assistant APP version reached 16.69 million, ranking 2nd in traffic, second only to Doubao, while the MAU monthly growth rate was 30%.