Annual Report 2025

INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) 14 China Merchants China Direct Investments Limited Annual Report 2025 REVIEW OF INVESTMENTS (CONTINUED) China Merchants Bank Co., Ltd. (“CMB”) is China’s first joint-stock commercial bank, with its headquarters in Shenzhen, Guangdong and with its shares listed on the Shanghai Stock Exchange since 2002 and on the Hong Kong Stock Exchange since 2006. As of 31 December 2025, the Fund held 55.20 million A shares of CMB, accounting for 0.219% of the total issued share capital of CMB, with a corresponding investment cost of RMB154.61 million (equivalent to US$19.79 million). In July 2025 and January 2026, the Fund received a cash dividend of RMB110 million from CMB for 2024 and a cash dividend of RMB55.91 million for 2025 interim, respectively. As of the end of 2025, the carrying value of the Fund’s interest in CMB was US$330.61 million, representing an increase of 9.56% over US$301.77 million at the end of last year. The Fund’s unrealised gain attributable to its investment in CMB for 2025 was US$21.64 million, down 75.70% year-over-year. On 27 March 2026, CMB announced that its audited net profit for 2025 was RMB151.126 billion, up 1.05% year- over-year. In November 2025, CMB announced that China Merchants Bank Financial Asset Investment Co., Ltd., its wholly owned subsidiary, had been approved to commence operations. Through the professional implementation of market- oriented debt-to-equity swap business, CMB will deepen industry–finance integration and intra-group collaboration, thereby serving the real economy. At the same time, it will actively carry out pilot equity investment business to support technological innovation, further enhance its integrated operating capabilities, and comprehensively promote high-quality development. In December 2025, The Asian Banker announced the results of its series of awards. CMB was honored with the “Best Managed Bank in China” in the 2025 Leadership Achievement Awards program. In the Wealth and Society Awards category, it received two prestigious recognitions: “Best Private Bank in China” and “Best Private Bank in China – Joint-Stock Bank”. In 2025, the Fund did not dispose of any A shares of CMB.