Annual Report 2025

INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) China Merchants China Direct Investments Limited Annual Report 2025 15 REVIEW OF INVESTMENTS (CONTINUED) China Credit Trust Co., Ltd. (“CCT”) was established in 1995, with its headquarters in Beijing. The principal activities of CCT are trust management, fund management, investments and loan financing. It is the first trust company with a full range of licenses for international business in the Chinese trust industry. As of 31 December 2025, the Fund held a 6.94% equity interest in CCT, with a total investment cost of US$50.49 million. In July 2025, the Fund received total cash dividends (pre-tax) of US$1.50 million from CCT for 2024. As of the end of 2025, the carrying value of the Fund’s interest in CCT was US$188.10 million, representing an increase of 30.30% from the value at the end of last year of US$144.36 million. The Fund’s unrealised gain attributable to its investment in CCT for 2025 was US$39.81 million, while the relevant amount for 2024 was negative US$1.81 million. For 2025, CCT recorded an unaudited net profit of RMB469 million, down 46.27% year-over-year. During the year, interest income for the year decreased compared to the previous year. Income from handling fees and commissions also decreased compared to the previous year, while investment income and gains from changes in fair value increased significantly compared to the previous year. In addition, non-operating income for the year decreased significantly year-on-year, while non-operating expenses increased significantly compared to the previous year. CCT achieved solid progress across multiple business segments: First, its standardised trust business continued to expand cooperation with bank wealth management subsidiaries, with service capabilities steadily improving and the scale of entrusted business continuing to grow rapidly. At the same time, it accelerated the development of its proprietary investment capabilities, further enriched its product portfolio, and diversified its external sources of funding. Secondly, its inclusive finance (small and micro) business continued to deepen cooperation with leading internet institutions, broaden its business models, and strengthen its independent risk control capabilities. Thirdly, in wealth management, it focused on deepening cooperation with banking and insurance distribution channels, optimised its business management systems and internal processes, and enhanced product and service innovation. Fourthly, it continued to explore innovation in other asset service trust businesses, successfully implementing three bankruptcy reorganisation service trusts and, in cooperation with the Shenzhen Data Exchange, launching one data trust project.