Annual Report 2025

INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) China Merchants China Direct Investments Limited Annual Report 2025 27 REVIEW OF INVESTMENTS (CONTINUED) Beijing Huashun Xin’an Technology Co., Ltd. (“Huashun Xin’an”) was established in Beijing in 2018 and is a cyber security company with a search engine for cyberspace resources. It is focused on the fields of big data security and cyberspace resources for surveying and mapping, and is primarily engaged in the research and development of technologies and products in the field of cyber information security. The Fund completed capital contributions of RMB24 million (equivalent toUS$3.67 million) and RMB6 million (equivalent to US$0.93 million) in April and July 2021, respectively, for an aggregate investment of RMB30 million (equivalent to US$4.60 million). In April 2022, in a new round of equity financing carried out by Huashun Xin’an, the Fund increased its investment in Huashun Xin’an by RMB6.50 million (equivalent to US$1.02 million), for an aggregate investment of RMB36.50 million (equivalent to US$5.62 million), amounting to a 4.295% equity interest in Huashun Xin’an as of 31 December 2025. As of the end of 2025, the carrying value of the Fund’s interest in Huashun Xin’an was US$1.77 million, representing an increase of 200.00% from the value at the end of last year of US$0.59 million. In December 2025, Huashun Xin’an released FOFA 5.0. The launch of the new version is set to break through traditional cybersecurity boundaries, extending the company’s business into diverse financial sectors, including commercial intelligence and market analysis. By integrating nearly ten years of historical network asset data, Huashun Xin’an allows users not only to conduct retrospective asset security analysis but also to effectively identify potential opportunities for market research and commercial analysis. Xinyi Information Technology (Shanghai) Co., Ltd. (“Xinyi”) was established in Zhang Jiang District, Shanghai in March 2017. It is a company that focuses on the research and development of SoC (system on a chip) for Internet of Things (IoT) for low-power wide-area network (LPWAN), and is committed to becoming a world-class manufacturer of Internet of Things intelligent terminal SoCs for the 5th generation mobile communications (5G), with applications mainly covering smart meters, smart security, smart transportation, smart cities, the sharing economy and other scenarios. In November 2025, Xinyi successfully completed its conversion into a joint-stock company and was renamed from Xinyi Information Technology Ltd. to Xinyi Information Technology (Shanghai) Co., Ltd. The Fund invested RMB35 million (equivalent to US$5.42 million) in September 2021 and held a 1.28% equity interest in Xinyi as of 31 December 2025. As of the end of 2025, the carrying value of the Fund’s interest in Xinyi was US$4.64 million, representing an increase of 487.34% from the value at the end of last year of US$0.79 million. In 2025, Xinyi’s unaudited revenue grew approximately 75% year-over-year. Shipments of its NB-IoT chips continued to rise in overseas markets, ranking among the industry leaders. The second-generation SoC chips, the XY1200/ XY2100 series, specifically developed for smart metering applications, maintained stable shipments and gradually expanded into overseas markets. The medium-speed IoT CAT-1 chip, the XY4100 series, continued to achieve mass shipments.