Unlocking Value

The annual general meeting of China Merchants China Direct Investments (CMCDI, 133 HK) took place today (20 June 2024) at 10am.

We, Argyle Street Management, attended, spoke and voted. We are encouraged that many shareholders spoke and offered constructive ideas.

We are shocked that Victor Chu and Elizabeth Kan (“Elizabeth“), who are at the center of a massive conflict-of-interest, did not even show up. Instead, Mr. Tse Yue Kit, another director, made feeble and unsatisfying attempts to defend Elizabeth after shareholders cast their votes.

Importantly, for the resolution to re-elect Elizabeth as a director:

	Voted in favor of Elizabeth ✔️	Voted against Elizabeth ❌
Number of shares	45,648,384	44,846,884
Equivalent to % outstanding shares	29.97%	29.44%

While Elizabeth survived the vote by a razor thin margin, the shareholders have spoken loud and clear.

Given that China Merchants Group and Victor Chu (and their respective affiliates) own 29.6% in CMCDI, that means: almost everybody else (including sophisticated institutional investors) wants Elizabeth out.

Shareholders are using their voting rights to defend their interests.

Going forward, we will continue to engage constructively with CMCDI and the shareholders. We are laser-focused on our only goal: narrow the discount to net asset value. We will soon propose to CMCDI new ideas to that end.

Another shareholder meeting will take place near the end of 2024, to approve the renewal CMCDI’s investment management agreement. We urge CMCDI to listen to shareholders.

Finally, we thank all the shareholders who voted. Stay in touch, and stay tuned for the next act.

Visit us: UnlockChinaMerchants.com

Write to us: ChinaMerchants@asmhk.com

招商局中国基金（133 HK，“中国基金”）的年度股东大会已于今天（2024年6月20日）上午10点举行。

我们，Argyle Street Management，出席了会议，并进行了发言和投票。我们对很多小股东能够积极发言并提出建设性意见感到鼓舞。

令人震惊的是，处于一场巨大利益冲突中心的诸立力先生和简家宜女士（ “简女士”，英文名Elizabeth）甚至没有出席会议。相反，在股东投票后，另一位董事谢如杰先生试图为简女士辩护，但我们认为其发言内容极为无力且不令人满意。

更重要的是，对于将简女士重新选举为董事的投票结果：

	赞成简女士重选✔️	反对简女士重选❌
投票股数	45,648,384	44,846,884
占全部已发行股份比例	29.97%	29.44%

虽然简女士以微弱的优势赢得投票，但此次结果也明确表达了股东们的意见。

考虑到招商局集团和诸立力先生（及其关联方）在中国基金持有29.6%的股份，这意味着几乎所有其他股东（包括有经验的机构投资者）都希望简女士离开。

小股东们正在利用自己的投票权利积极捍卫自身的利益。

未来，我们将继续与中国基金和股东们保持密切沟通。我们唯一的目标：缩小股价与净资产价值的折价。我们将很快向中国基金提出实现这一目标的方法。

另一次股东特别大会预计将于2024年年底举行，该股东大会将审批中国基金投资管理协议的续约事项。我们敦促中国基金倾听小股东的声音。

最后，我们感谢所有参与投票的小股东。保持联系，敬请期待下一步行动。

访问我们:  UnlockValueChinaMerchants.com

电邮我们:  ChinaMerchants@asmhk.com