Annual Report 2025

CHAIRMAN’S STATEMENT (CONTINUED) 6 China Merchants China Direct Investments Limited Annual Report 2025 down from 6.2% in the previous year. However, guided by policy directions outlined in the 15th Five-Year Plan, including raising the consumption rate, promoting paid leave and staggered holidays, and enhancing the alignment between consumer supply and demand. Specific measures to boost services consumption are likely to be introduced in the coming year, leaving considerable room for further expansion. In terms of investment, the Central Economic Work Conference held in late 2025 emphasized the need to “stabilise investment and reverse its downtrend”, demonstrating significantly increased attention to the slowing pace of investment growth. As 2026 marks the inaugural year of the 15th Five-Year Plan, the pace of fund allocation and disbursement is expected to accelerate, with major projects likely to be implemented early to provide support. While “anti-involution” initiatives continue to weigh on manufacturing investment, high-tech sector investment remains structurally resilient. In terms of imports and exports, trade frictions between the U.S. and China have entered the stage of “tactical” détente. Despite base effects exerting pressure on exports, multiple sources of resilience remain. Given that a number of emerging market economies are in a stage of rapid industrialization, China retains substantial potential for exporting intermediate goods to Belt and Road Initiative participating countries, Africa, and other emerging markets. Moreover, AI-driven investment is boosting trade in related products, providing further support to China’s electromechanical exports. In summary, China’s economic growth is expected to be maintained in 2026. Although we expect that various asset price risks, arising from slowing growth in the global economy (including China) in medium- to long-term, along with greater volatility in the capital markets, will pose certain challenges to our investment portfolio, the Company and the Investment Manager, as always, will face the challenges ahead and strive to identify new investment opportunities, as well as to seek to optimise our mix of investments in a way that will increase shareholders’ return. Lastly, on behalf of the Board, I would like to offer my heartfelt gratitude to the members of the Audit Committee, Nomination Committee and Investment Committee, and to the entire staff of the Investment Manager, for their many contributions and dedicated effort, and to the shareholders for their support. As always, I, with the Board, will continue to give our best effort in leading the Group as we seek to create value for shareholders in the coming year. Mr. ZHOU Xing Chairman Hong Kong, 27 March 2026