Annual Report 2022

29 China Merchants China Direct Investments Limited Annual Report 2022 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) As of the end of 2022, the carrying value of the Fund’s interest in Huiyou Xingyao Fund was US$4.50 million, representing an increase of 18.73% over US$3.79 million at the end of last year. In January 2022, YZY Biopharma completed its conversion into a joint-stock limited company and the Chinese name of the company also changed to its present name. Leveraging its advanced and mature bispecific antibody platform technology, YZY Biopharma has been deeply engaged in the bispecific antibody field for T-cell recruitment of target CD3, and has developed three CD3 bispecific antibody products (namely M802, M701 and Y150) which are at the clinical trial stage, as well as a number of other CD3 bispecific antibody products which are at various pre-clinical trial stages. Of these, the key product, M701, is a bispecific antibody medicine for malignant ascites. In January 2022, YZY Biopharma completed a phase I clinical trial of M701 in treating malignant ascites, and is currently conducting a phase II clinical trial to evaluate the efficacy of M701 in combination with systematic treatment for malignant ascites. In addition, YZY Biopharma commenced a phase Ib/II clinical trial of M701 in treating malignant pleural effusion in China in November 2022. On 9 December 2022, YZY Biopharma made an application for listing on the Hong Kong Stock Exchange. The prospectus discloses that its loss and comprehensive expenses for the years ended 31 December 2020 and 2021 and for the six months ended 30 June 2022 was RMB108 million, RMB149 million and RMB90 million, respectively. 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 for a 1.67% equity interest in Immvira. As of the end of 2022, the carrying value of the Fund’s interest in Immvira was US$8 million. In August 2022, two of Immvira’s oncolytic virus products were respectively approved for clinical trials. Its oncolytic herpes simplex virus therapy program, MVR-T3011 IV (intravenous administration), obtained approval from the National Medical Products Administration (NMPA) of China for clinical trials on 6 August. And its self-developed product, MVR-C5252, specifying for malignant glioma, obtained approval by the United States Food and Drug Administration (FDA) for clinical trials on 9 August.