Annual Report 2024

4 China Merchants China Direct Investments Limited Annual Report 2024 CHAIRMAN’S STATEMENT The board of directors (the “ Board ”) announces that the audited consolidated net asset value of China Merchants China Direct Investments Limited (the “ Company ”) and its subsidiaries (together, the “ Group ”) as of 31 December 2024 amounted to US$647.38 million, representing an increase of 16.03% compared to US$557.94 million in 2023. The net asset value per share was US$4.250, representing the same percentage increase of 16.03% compared to US$3.663 in 2023. The Group’s audited consolidated profit after taxation for 2024 was US$120.35 million, representing an increase of 2,000.35% compared to an audited consolidated profit after taxation of US$5.73 million for last year. The Board has recommended the payment of a final dividend of US$0.04 per share for the year 2024. Together with the interim dividend of US$0.04 per share already paid during the year, total dividends payable for the year 2024 were US$0.08 per share, the same as last year. In 2024, global growth gradually stabilised as inflation came down closer to targets, and monetary easing supported economic activities in both advanced economies and emerging market and developing economies. The World Bank estimated that, in 2024, the global economy grew by 2.7%, the US economy by 2.8%, the Eurozone economy by 0.7% and the Japanese economy by 0.0%. In 2024, China’s economy was generally stable with steady progress, and reached its 2024 growth target. According to a preliminary report by the National Bureau of Statistics, in 2024, China’s gross domestic product (GDP) was RMB134.9 trillion, representing an increase of 5.0%, calculated in constant prices, as compared to last year. In terms of industries, the added value of the primary industry was RMB9.1 trillion, with a year-on-year increase of 3.5%; the added value of the secondary industry was RMB49.2 trillion, with a year-on-year increase of 5.3%; the added value of the tertiary industry was RMB76.5 trillion, with a year-on-year increase of 5.0%. In terms of quarters, GDP grew by 5.3% year-on-year in the first quarter, by 4.7% year-on-year in the second quarter, by 4.6% year-on-year in the third quarter, and by 5.4% year-on-year in the fourth quarter. Furthermore, the resident consumer prices were generally stable in 2024, with the Consumer Price Index of China up 0.2% year-over-year. In 2024, the A shares market of China generally experienced a fluctuating upward trend. The SSE Composite Index began to fall at the beginning of the year, reaching its lowest point of the year at 2635 points on 5 February, and then rose repeatedly, reaching its highest mark of the year at 3674 points on 8 October. It finally closed at 3352 points at the end of 2024 with a slight retreat, up 12.67% from the end of 2023. In 2024, the Hong Kong stock market experienced a similar trend. The Hang Seng Index fell from the beginning of the year to its lowest point of the year at 14794 points on 22 January, and then rose repeatedly. After reaching its highest mark of the year at 23242 points on 7 October, it fell repeatedly and finally closed at 20060 points at the end of 2024, up 17.67% from the end of 2023, ending four consecutive years of decline. At the end of 2024, the Group’s total holdings in investment projects amounted to US$775.65 million (US$683.31 million at the end of 2023), accounting for 96.13% of the Group’s total asset value and representing an increase of US$92.34 million. This was largely due to a net increase in the fair value of investment projects. Meanwhile, cash and cash equivalents were US$30.95 million, accounting for 3.84% of the total asset value of the Group.