Annual Report 2023

28 28 China Merchants China Direct Investments Limited Annual Report 2023 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) Flexiv Ltd. (“Flexiv”) was established in Silicon Valley, the United States, in June 2016 and is a technology company in China that focuses on the development and application of adaptive robots. It, based on Flexiv robotic systems, provides innovative turnkey solutions and services for its customers in a range of industries. The Fund invested US$5 million in December 2020 and held a 1.58% equity interest in Flexiv as of 31 December 2023. As of the end of 2023, the carrying value of the Fund’s interest in Flexiv was US$6.02 million, representing a decrease of 3.53% from the value at the end of last year of US$6.24 million. The value of Flexiv’s orders for 2023 grew 160% year-over-year. Rizon 4 continued to be delivered, while cost reduction and efficiency enhancements for the product have been achieved through the successful self-development of more spare parts. Trial production of the Rizon 10 PVT is progressing smoothly and its delivery is ongoing. Moonlight, a self-adjusting parallel robot, and the Grav series, a force-controlled gripper with a universal end-of- socket, were both released at the beginning of the year and have been made available to customers in small batches for on-site Proof of Concept. Beijing Huashun Xin’an Technology Co., Ltd. (“Huashun Xin’an”) was established in Beijing in 2018 and is a cyber security company with a search engine for cyberspace resources. It is focused on the fields of big data security and cyberspace resources for surveying and mapping, and is primarily engaged in the research and development of technologies and products in the field of cyber information security. The Fund completed capital contributions of RMB24 million (equivalent to US$3.67 million) and RMB6 million (equivalent to US$0.93 million) in April and July 2021, respectively, for an aggregate investment of RMB30 million (equivalent to US$4.60 million). In April 2022, in a new round of equity financing carried out by Huashun Xin’an, the Fund increased its investment in Huashun Xin’an by RMB6.50 million (equivalent to US$1.02 million) to avoid a dilution of its interest, for an aggregate investment of RMB36.50 million (equivalent to US$5.62 million), amounting to a 4.295% equity interest in Huashun Xin’an as of 31 December 2023. As of the end of 2023, the carrying value of the Fund’s interest in Huashun Xin’an was US$1.49 million, representing a decrease of 25.87% from the value at the end of last year of US$2.01 million. In response to users’ increasing demands and new scenarios for the cyberspace search engine, FOFA-G, the company launched an upgraded version, the FO-OCTRA platform, in April 2023 to meet users’ needs for analysing data for clues on illegal cyber activities, provided for use by authorised regulatory agencies. On 24 May 2023, at the Work Summary 2022 of the China National Vulnerability Database of Information Security (CNNVD) and Excellent Support Unit Commendation Conference, Huashun Xin’an received two prestigious honours, namely the “Excellent Technical Support Unit of 2022” and the “Outstanding Contribution Award for High-Value Vulnerabilities in 2022.” In December 2023, Huashun Xin’an was recognised as “Outstanding Contributor to Intelligence Support for Financial Network Security Situation Awareness Platform” because of its advantages in the field of cyberspace surveying and mapping and its outstanding technical capabilities. It was also listed as “Emergency Support Unit for the Industrial Information Security Monitoring of 2024” by the National Industrial Information Security Development Research Centre.