Annual Report 2025

INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) China Merchants China Direct Investments Limited Annual Report 2025 23 REVIEW OF INVESTMENTS (CONTINUED) As of the end of 2025, the carrying value of the Fund’s interest in Arashi Vision was US$186.99 million, representing an increase of 433.95% over US$35.02 million at the end of last year. The Fund’s unrealised gain attributable to its investment in Arashi Vision for 2025 was US$148.76 million, up 758.40% year-over-year. On 11 June 2025, Arashi Vision was successfully listed on the STAR Market of the Shanghai Stock Exchange. In 2025, Arashi Vision continued to expand its market presence, launched new products, and further increased both online and offline sales. On 14 February 2026, Arashi Vision announced its unaudited revenue for 2025 of RMB9.858 billion, respesenting a year-over-year increase of 76.85%, and unaudited net profit attributable to owners of the parent company of RMB964 million, down 3.08% year-over-year. During 2025, Arashi Vision launched several new products. In January 2025, it introduced the Flow 2 Pro smartphone stabiliser, which enables dynamic telephoto tracking and intelligent multi-person tracking through its gimbal system, enhancing the content creation experience. In April 2025, it launched the flagship 8K panoramic camera X5, equipped with a 1/1.28-inch sensor, a 5nm AI chip, and two professional imaging chips. The hardware was comprehensively upgraded, with improvements over the previous generation in image quality, computing performance and battery life. In September 2025, Arashi Vision released the AI recording omnidirectional microphone Wave, optimised for use in meetings, live streaming, and content creation scenarios. In October 2025, it launched the 8K panoramic camera X4 Air, which focuses on a lightweight and portable user experience. In December 2025, its panoramic drone, Yingling Antigravity A1 was officially launched. The product enables uncropped panoramic recording through dual 360 ° fisheye lenses and seamless stitching algorithms and is paired with head-controlled glasses and a motion-sensing remote controller to provide an immersive operating experience. In 2025, Arashi Vision’s global brand influence continued to strengthen. In June 2025, Arashi Vision was named, for the third consecutive year, in the BrandZ Top 50 Chinese Global Brand Builders ranking jointly released by Google and KANTAR BRANDZ, ranking 24th in 2025. In October 2025, the US “Time” magazine published its list of the Best Inventions of 2025, and Arashi Vision’s Antigravity A1 panoramic drone was selected for inclusion. Xunfei Healthcare Technology Co., Ltd. (“Xunfei Healthcare”) was established in the High-tech Development Zone, Hefei, Anhui in 2016 and is an AI-empowered healthcare solution provider, offering products and solutions that support a range of healthcare services, ranging from health risk warnings, early screening, auxiliary diagnosis and treatment as well as treatment effect evaluation to post-discharge management and chronic disease management. Xunfei Healthcare has independently developed AI technologies that underpin its products and solutions. The Fund invested RMB60 million (equivalent to US$8.60 million) in February 2020 and RMB50 million (equivalent to US$7.80 million) in November 2021, for an investment of RMB110 million (equivalent to US$16.40 million) in Xunfei Healthcare. In December 2024, the Fund subscribed for the H shares of Xunfei Healthcare through the global offering of Xunfei Healthcare at an offer price of HK$82.80, in the amount of HK$28 million (equivalent to US$3.61 million), and the number of H shares allocated to the Fund was 338,150. After the completion of the global offering and listing of Xunfei Healthcare, together with the existing investment, the Fund has cumulatively invested an equivalent amount of RMB136 million (equivalent to US$20.01 million) in Xunfei Healthcare, and holds 4,238,150 H shares, accounting for 3.506% of the issued share capital of Xunfei Healthcare. As at the end of December 2025, the lock-up periods relating to the 4,238,150 shares of Xunfei Healthcare H shares held by the Fund had all expired.