Annual Report 2024

China Merchants China Direct Investments Limited Annual Report 2024 33 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) Immvira Bioscience Inc. (“Immvira”) was established in Cayman Islands in May 2018 and is a biotech research and development company, principally engaged in clinical research and the development of vector technologies as potential cancer therapeutics. Leveraging intrinsic mechanisms of action and tumor microenvironment modifications, Immvira is focused on developing a new generation of novel anti-cancer drug vectors, including replicating and non- replicating herpes simplex virus vectors, drug delivery exosomes and tumor vaccines. The Fund invested US$8 million in October 2022 and eventually held a 1.65% equity interest in Immvira. As of the end of 2024, the carrying value of the Fund’s interest in Immvira was US$5.40 million, representing an increase of 0.37% over US$5.38 million at the end of last year. In March 2024, Immvira announced that the U.S. Food and Drug Administration (FDA) had granted Fast Track designation to its oncolytic virus product, MVR-T3011 IT (intratumoral injection), destined for the treatment of patients with recurrent or metastatic head and neck squamous cell cancer (HNSCC) with disease progression after platinum-based chemotherapy and PD1/PDL1 therapy. Fast Track designation by the FDA is intended to facilitate the development, and to expedite the review process, of drugs targeting serious conditions with unmet medical needs. In September 2024, Immvira announced for the first time, through a poster presentation at the European Society for Medical Oncology Congress 2024 (ESMO 2024), the latest clinical results of its core oncolytic virus product, MVR-T3011, in patients with non-muscle invasive bladder cancer (NMIBC) who are at high risk of Bacillus Calmette Guerin (BCG) failure. PROSPECTS In 2024, global economic growth was resilient enough to withstand a series of shocks, but remained below its pre- coronavirus pandemic average due to weak investment, sluggish productivity growth and high debt. The World Economic Situation and Prospects 2025 released by the United Nations notes that lower inflation and ongoing monetary easing in many economies could provide a modest boost to global economic activity in 2025. However, a considerable degree of uncertainty persists, with risks stemming from geopolitical conflicts, rising trade tensions and elevated borrowing costs in many parts of the world. Nevertheless, China’s 2024 macro data showed that the national economy was generally stable and showing signs of steady progress, with many advances in high-quality economic development, especially the timely deployment of a package of incremental policies, which effectively boosted social confidence and led to a significant rebound in the economy. 2025 is the final year for implementation of the “14th Five-Year” plan, and China’s overall economic growth is expected to stabilise and to show continued progress in 2025 as well. It is expected that the operating results of the investment projects (mainly operating in China) held by the Fund may continue to improve.