Annual Report 2025

INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) 18 China Merchants China Direct Investments Limited Annual Report 2025 REVIEW OF INVESTMENTS (CONTINUED) As of the end of 2025, the carrying value of the Fund’s interest in China Media Investment was US$2.27 million, representing a decrease of 44.50% from the value at the end of last year of US$4.09 million. Through the end of December 2025, China Media Investment completed a full exit from five projects, while continuing to hold two projects, namely Star China (the listing vehicle of which, namely Star CM Holdings Limited, was listed on the Hong Kong Stock Exchange in December 2022) and Oriental DreamWorks. NBA China, L.P. (“NBA China”) is a limited liability partnership incorporated in the Cayman Islands in 2007. NBA China conducts all of the NBA’s businesses in the Greater China Region, including television broadcasting rights, advertising, sponsorships, events, digital media, and merchandising, among other new businesses. The original investment by the Fund in 2008 was US$23 million, representing a 1% partnership interest in NBA China. The Fund subsequently received returns of capital from NBA China for a cumulative amount of US$23 million in 2017, representing a full recovery of the capital invested in NBA China by the Fund. As of 31 December 2025, the Fund held a 1% partnership interest in NBA China. The Fund received a cash distribution from NBA China of US$3.01 million and US$3.34 million in the first quarter of both 2025 and 2026, respectively. As of the end of 2025, the carrying value of the Fund’s interest in NBA China was US$38.88 million, representing a decrease of 4.05% over US$40.52 million at the end of last year. The Fund’s unrealised gain attributable to its investment in NBA China for 2025 was negative US$1.64 million, while the amount in the previous year was US$12.62 million. In October 2025, the “NBA Sands Macau Games 2025” were successfully held. The event primarily featured preseason games between the Brooklyn Nets and the Phoenix Suns, together with associated fan day activities and NBA Cares Community Week events, attracting star players and a large number of fans. Sands China Ltd. acted as the principal partner. Qinghai Provincial Qinghai Lake Tourism Group Co., Ltd. (“Qinghai Lake Tourism”) was established in Xining, Qinghai in 2008. It is a tourism operator with a focus on Qinghai Lake, a national 5A-class scenic spot, and is principally engaged in product development, business operations and provision of services related to tourism in Qinghai Lake and the surrounding regions. The Fund agreed to advance cash of RMB200 million in total to Qinghai Lake Tourism for a period of 3 years, with the right to convert the loan into an equity interest in Qinghai Lake Tourism during the term of the loan, subject to the fulfillment of certain precedent conditions. In August and September 2017, the Fund disbursed RMB50 million (equivalent to US$7.50 million) and RMB150 million (equivalent to US$22.93 million), respectively, amounting to RMB200 million (equivalent to US$30.43 million) in aggregate. Pursuant to a supplemental agreement to the convertible loan agreement entered into between the Fund and Qinghai Lake Tourism dated 9 May 2019, the Fund had received aggregate loan repayments of RMB200 million from Qinghai Lake Tourism before the end of 2020, representing a full recovery of the loan made by the Fund.