Annual Report 2025

INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) 22 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 Pony AI was US$23.07 million, representing a decrease of 17.93% over US$28.11 million at the end of last year. The Fund’s unrealised gain attributable to its investment in Pony AI for 2025 was US$3.39 million, down 70.93% year-over-year. On 6 November 2025, Pony AI completed its listing on the Hong Kong Stock Exchange, achieving a dual listing in both the United States and Hong Kong following its prior listing on the NASDAQ. Pony AI announced on 26 March 2026 its unaudited net loss for 2025 of US$76.758 million, compared with a loss of US$275 million in the previous year. In 2025, the unaudited revenue from Pony AI’s Robotruck services amounted to US$40.601 million USD, representing a year-on-year increase of 0.6%. The fleet includes autonomous trucks at both L2+ and L4 levels. For the Robotaxi service, unaudited revenue reached US$16.607 million, reflecting a year-on- year increase of 128.6%. The fleet consists of more than 1,400 vehicles. Commercial operations are now conducted in four Tier-1+ cities in China (Beijing, Guangzhou, Shenzhen, and Shanghai), with a total operational area exceeding 2,000 square kilometers. The coverage includes key transportation hubs such as central business districts, airports, and high-speed rail stations. Pony AI has also established presence in South Korea, Luxembourg, Singapore, and Saudi Arabia. Additionally, at Auto Shanghai 2025, Pony AI officially unveiled its seventh-generation autonomous driving system, the Gen 7 system. The company has entered into partnerships with BAIC (Beijing Automotive), GAC (Guangzhou Automobile Group), and Toyota, integrating the Gen 7 system into three vehicle models. Compared with the previous Gen 6 system, the Gen 7 adopts Pony AI’s self-developed autonomous driving domain controller — the world’s first product to achieve full-scenario L4 autonomous driving based on automotive-grade chips. It features a longer product lifecycle, a driving durability of 600,000 kilometers, a 70% reduction in material costs, as well as guaranteed production capacity and supply assurance for all related components. Following the launch of the Gen 7 system, Pony AI achieved breakeven in its unit economics in both Guangzhou and Shenzhen. Arashi Vision Inc. (“Arashi Vision”) was established in Shenzhen, Guangdong in July 2015 and is striving to become a global leader engaged in the research, development and manufacture of 360-degree video products. The Fund invested RMB20 million (equivalent to US$2.83 million) and RMB10 million (equivalent to US$1.44 million) in September and November 2019, respectively, bringing the Fund’s total investment in Arashi Vision to RMB30 million (equivalent to US$4.27 million), for a 1.625% equity interest in the company. Upon the listing of Arashi Vision in June 2025, the Fund held 5,849,989 shares of Arashi Vision, accounting for 1.459% of the issued share capital of Arashi Vision. In addition, the shares of Arashi Vision held by the Fund are subject to a lock-up period of 12 months.