Annual Report 2025

INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) 26 China Merchants China Direct Investments Limited Annual Report 2025 REVIEW OF INVESTMENTS (CONTINUED) Flexiv Ltd. (“Flexiv”) was established in Silicon Valley, the United States, in June 2016 and is a technology company in China that focuses on the development and application of adaptive robots. It, based on Flexiv robotic systems, provides innovative turnkey solutions and services for its customers in a range of industries. The Fund invested US$5 million in December 2020. Flexiv completed a new round of equity financing in October 2025, and the equity interest held by the Fund in Flexiv was diluted from 1.58% to 1.41%, accordingly. As of the end of 2025, the carrying value of the Fund’s interest in Flexiv was US$14.38 million, representing an increase of 181.96% from the value at the end of last year of US$5.10 million. In 2025, Flexiv recorded an unaudited revenue growth of 180% year-over-year. The existing products, Rizon and Grav, continued to be delivered, while cost reductions and efficiency enhancements for the products have been achieved through the successful self-development of more spare parts, such as motors. The new product, Moonlight (a parallel self-adjusting robot), was launched in volume in September. At the same time, the company has signed recurring purchase orders with a number of key customers and has also established stable cooperative relationships with a number of leading automotive companies and tier-1 manufacturers. In August 2025, Flexiv collaborated with Huawei to develop an intelligent solution for optical communication manufacturing. Leveraging industrial-grade force control, hierarchical intelligence, and embodied large models, the solution overcame traditional automation bottlenecks, enabling the intelligent upgrade of optical communication production. Specifically, for the terminal insertion, a challenge difficult to address with conventional automation, the solution achieved over 90% general applicability, representing a significant breakthrough. In November 2025, Flexiv launched the FMR 300 mobile robot platform, with long endurance, precise positioning, and high compatibility. It has been deployed in CNC tool management, mobile precision assembly, sorting and material handling (including loading and unloading), lab automation, and other scenarios. In April and October 2025, Noematrix, the embodied intelligence subsidiary strategically incubated by Flexiv, completed two rounds of equity financing for hundreds of millions of RMB, which will further accelerate the application and implementation of embodied intelligence large models in a wide range of commercial scenarios.