Annual Report 2024

32 China Merchants China Direct Investments Limited Annual Report 2024 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) Nanning Huiyou Xingyao Equity Investment Fund L.P. (“Huiyou Xingyao Fund”) was established in Nanning, Guangxi in September 2020, with an investment horizon of 5 to 7 years and with a total fund subscription amount of RMB113 million. Huiyou Xingyao Fund is a single-project equity investment fund, making equity investments solely in Wuhan YZY Biopharma Co., Ltd. (“ YZY Biopharma ”). YZY Biopharma is a pharmaceutical company with a bispecific antibody platform and related biopharmaceutical research and development capabilities. The fund manager of Huiyou Xingyao Fund is Tongde Qianyuan (Beijing) Investment Management Co., Ltd., which is responsible for providing consultation and advice on investment matters, as well as providing daily operations and investment management services. The Fund has committed to subscribe to an aggregate amount of RMB24 million by installment, representing 21.24% of the total fund subscription amount of Huiyou Xingyao Fund. The Fund made capital contributions to Huiyou Xingyao Fund in November 2020 and July 2021 for an aggregate amount of RMB24 million (equivalent to US$3.66 million), representing 100% of the subscription amount committed by the Fund. As of the end of 2024, the carrying value of the Fund’s interest in Huiyou Xingyao Fund was US$2.31 million, representing an increase of 6.94% over US$2.16 million at the end of last year. On 29 August 2024, YZY Biopharma announced that its unaudited net loss for the first half of 2024 was RMB78.40 million, compared to a net loss of RMB86.57 million for the same period last year. In May 2024, YZY Biopharma announced that the data from an interim analysis of its Phase II clinical study, conducted in China, of its independently developed core pipeline, M701, destined for the treatment of malignant ascites caused by advanced epithelial solid tumors, were presented in a poster session at the 2024 annual meeting of the American Society of Clinical Oncology. In December 2024, YZY Biopharma announced that the updated data of the above clinical study were presented in a proffered oral session at the European Society for Medical Oncology - Asia (ESMO-ASIA) Congress 2024. Compared with catumaxomab, which has been withdrawn from the market, M701 has been humanised to reduce immunogenicity and to optimise the safety and efficacy of the drug. In October 2024, YZY Biopharma announced that it had entered into a licensing and collaboration agreement with Chia Tai Tianqing, a subsidiary of Sino Biopharmaceutical Limited, in relation to its independently developed core pipeline, M701. YZY Biopharma has granted Chia Tai Tianqing an exclusive and sublicensable right to develop, register, manufacture and commercialise the product within specific territories and fields of research. Chia Tai Tianqing will make an upfront payment to YZY Biopharma, to be followed by additional development milestone payments of up to a total of RMB315 million for the licensed product based on its research and development progress.