China Merchants China Direct Investments Limited (the Group) reported an unaudited loss attributable to shareholders of US$59.77 million for the six months ended 30 June 2026, reversing a profit of US$140.45 million a year earlier. The downturn was driven by a US$112.06 million net loss on financial assets at fair value through profit or loss (FVTPL), compared with a US$188.75 million gain in the prior-year period.

Listed holdings accounted for the bulk of the decline, recording a US$133.93 million loss, while unlisted investments generated a US$21.87 million gain. By sector, the financial services portfolio posted an US$11.50 million loss, culture, media and consumption lost US$37.44 million, and information technology fell by US$59.22 million.

Despite valuation pressure, investment income surged 506.51% to US$10.25 million, underpinned by a jump in dividend receipts to US$9.74 million. Administrative expenses rose to US$1.57 million, and a deferred tax credit of US$40.82 million partially cushioned operating losses.

Net assets slipped 9.3% from end-2025 to US$757.31 million. Net asset value per share declined to US$4.971 from US$5.479. Cash and cash equivalents more than doubled to US$64.11 million, representing 6.61% of total assets; the Group remained debt-free.

The Board declared an interim dividend of US$0.05 and a special interim dividend of US$0.07 per share, lifting the half-year payout to US$0.12 per share (US$18.28 million in aggregate), up from US$0.08 per share a year earlier. The dividends will be paid on 6 November 2026 to shareholders on record as of 24 September 2026.

During the period, the Group exited its 4.98% stake in JIC Leasing Co., Ltd. for RMB271.85 million (US$38.68 million), achieving a pre-tax internal rate of return of approximately 1.20%. Post-period, it sold an additional 1,080,466 shares of Arashi Vision Inc. for US$22.10 million.

Portfolio allocation at 30 June 2026 totaled US$864.87 million: financial services US$463.59 million (47.79% of assets), information technology US$358.29 million (36.92%), culture, media and consumption US$29.71 million (3.06%), and other sectors US$13.28 million (1.37%).

The Company highlighted China’s 4.7% GDP growth in the first half and reiterated its investment focus on digital finance, artificial intelligence, culture & tourism, and healthcare. Following the expiry of the investment management agreement on 30 June 2026, a newly appointed senior management team assumed day-to-day operations from 1 July 2026.