Annual Report 2025

INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) 24 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 Xunfei Healthcare was US$42.53 million, representing a decrease of 0.19% over US$42.61 million at the end of last year. The Fund’s unrealised gain attributable to its investment in Xunfei Healthcare for 2025 was negative US$0.94 million, down 13.10% year-over- year. On 27 March 2026, Xunfei Healthcare announced that its audited net loss for 2025 was RMB65.767 million, compared with a net loss of RMB137 million in the previous year. In November 2025, the 35th Great Wall International Congress of Cardiology and the Asian Heart Congress were successfully held at the China National Convention Center in Beijing. At the conference, the “Cardiac Ultrasound Diagnostic Decision-Making System V1.0”, a multimodal large model jointly developed by Beijing Anzhen Hospital of Capital Medical University, Xunfei Healthcare, and Beihang University, was officially launched. In December 2025, Xunfei Healthcare announced that its major shareholder had voluntarily extended the lock-up period. Xunfei Healthcare stated that the extension of the lock-up period reflects the major shareholder’s confidence in its future prospects. Market commentators considered that the voluntary extension demonstrates strong recognition by key stakeholders of the company’s future development and indirectly affirms the feasibility of its AI healthcare strategy and its medium- to long-term growth potential. China UnionPay Co., Ltd. (“China UnionPay”) was established in March 2002, with its headquarters in Shanghai. It is a leading enterprise in the financial payment industry and is responsible for the construction and operation of a nationwide unified inter-bank information exchange network for bank cards, the provision of professional services related to inter-bank information exchange for bank cards, the management and operation of the “UnionPay” brand name, and the formulation of business specifications and technical standards for inter-bank transactions for bank cards. The Fund invested RMB220 million (equivalent to US$31.12 million) in June 2020 for a 0.17% equity interest in China UnionPay. In November 2023, the Fund signed an equity transaction contract with an independent third party, pursuant to which the Fund agreed to sell a 0.12% equity interest in China UnionPay to the independent third party, thereby realising investment gains from this partial disposal and obtaining funds of RMB275 million (equivalent to US$38.7 million) for working capital. The equity transfer was completed in the first quarter of 2024. As of 31 December 2025, the Fund held a 0.05% equity interest in China UnionPay, with a corresponding investment cost of RMB66.00 million (equivalent to US$9.33 million). In December 2025, the Fund received a cash dividend of RMB0.97 million from China UnionPay for 2024. As of the end of 2025, the carrying value of the Fund’s interest in China UnionPay was US$25.43 million, representing an increase of 9.28% from the value at the end of last year of US$23.27 million. The Fund’s unrealised gain attributable to its investment in China UnionPay for 2025 was US$1.61 million, down 78.27% year-over-year.