Annual Report 2024

China Merchants China Direct Investments Limited Annual Report 2024 5 CHAIRMAN’S STATEMENT (CONTINUED) In 2024, the Investment Manager actively sought new investment opportunities, with intensive due diligence and the rigorous screening of many prospects. Consequently, the Group invested in a listed financial services project in 2024, namely China International Capital Corporation Limited, with an investment amount of US$2.19 million. The Group also made further investments in an existing information technology project, namely Xunfei Healthcare Technology Co., Ltd., with an investment amount of US$3.61 million. The aggregate investment amount for the two above- mentioned projects was US$5.80 million. The existing investment management agreement had its expiration date on 31 December 2024. As such, on 18 October 2024, the Company and the Investment Manager executed an investment management agreement with a term of three years from 1 January 2025 which was subject to approval by the independent shareholders of the Company. Although such renewal investment management agreement was opined on by the independent financial adviser and recommended by the Independent Board Committee, which comprised entirely Independent Non- executive Directors of the Company, as being on normal commercial terms, fair and reasonable and in the interests of the Company and its shareholders as a whole, the resolution to approve such renewal investment management agreement was not passed by the independent shareholders of the Company at the extraordinary general meeting held on 29 November 2024 and thus did not become effective. In the circumstances, on 17 December 2024, the Company and the Investment Manager entered into a temporary investment management agreement for a term of 6 months from 1 January 2025 as an interim measure to ensure continuity in the investment management operations of the Company. Looking ahead to 2025, there will be challenges as well as opportunities. In its Global Economic Prospects report released in January 2025, the World Bank points out that the global economy is expected to see a moderate expansion of 2.7% in 2025, as trade and investment come to be stable. Growth in advanced economies is expected to be 1.7% in 2025, while emerging market and developing economies are expected to grow by 4.1% in 2025, up 0.1% from the bank’s June 2024 projection. As for China’s economy in 2025, it is expected that, driven by generally supportive policies, more fiscal and monetary resources will be deployed to support growth in consumption, which will improve the momentum of the recovery in consumption and thus improve domestic demand in order to drive economic growth. In addition, the reduction in mortgage interest rates on existing housing loans will provide a growth opportunity for other consumer expenditures in the household sector. In terms of investment, China’s manufacturing industry will be in an important period of transition from old to new drivers in 2025. The “Two Major” projects (the implementation of major national strategies and the construction of security capabilities in key areas) and the “Two New” policies (the promotion of a new round of large-scale equipment upgrades and the trade-in of consumer goods) are projected to drive an acceleration in the growth of China’s manufacturing investment. At the same time, infrastructure investment will play a stronger supporting role, and the growth rate of traditional local infrastructure construction investment is expected to pick up slightly. In terms of imports and exports, although the new round of Sino-US trade tensions may pose challenges, the overall impact on China’s exports may be limited. This