China Merchants China Direct Investments : INVESTMENT IN IFLYTEK HEALTHCARE

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CHINA MERCHANTS CHINA DIRECT INVESTMENTS LIMITED

招商局中國基金有限公司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 133)

INVESTMENT IN IFLYTEK HEALTHCARE

China Merchants China Direct Investments Limited (the "Company") announces that Shenzhen Tian Zheng Investment Co., Ltd. ("Tian Zheng"), a wholly-owned subsidiary of the Company, entered into a share transfer agreement dated 27 December 2019 in relation to 安徽科大訊飛醫療信息技術有限公司 (Anhui iFlytek Healthcare Information Technology Co., Ltd.*, "iFlytek Healthcare"), pursuant to which Tian Zheng agrees to acquire 3% of the ordinary shares of iFlytek Healthcare from 安徽科訊創業投資基金合夥企業（有限合夥） (Anhui Iflytek Venture Capital LLP*) (a present shareholder of iFlytek Healthcare) for RMB60,000,000.

Information on iFlytek Healthcare

iFlytek Healthcare was established in May 2016. It is an "Artificial Intelligence (AI) plus Healthcare" project internally incubated by 科大訊飛股份有限公司 (Iflytek Co., Ltd.*, "Iflytek"), the A shares of which are listed on the Shenzhen Stock Exchange. iFlytek Healthcare is a start-up healthcare technology company which adopts intelligent speech and AI technology to build government-oriented intelligent healthcare service platforms and hospital-orientedspeech-to-text solutions, as well as to provide doctors with speech-to-text and computer assisted diagnosis system, so as to achieve an integration of regional healthcare data and provide doctors and patients with high-quality, convenient and efficient diagnosis and treatment services.

Reasons for and Benefits of Investing in iFlytek Healthcare

Based on its advanced technology in speech recognition and cognitive intelligence, iFlytek Healthcare has developed two relatively comprehensive software and hardware solutions, namely "Intelligent Doctor Assistant" and "Smart Hospital", for the primary care doctors and hospital specialists respectively. Relying on the sales network of its controlling shareholder, Iflytek, the solutions have already recorded sales revenue. With the accelerated ageing of population in China, the Company believes that government policies will drive further growth of the healthcare digitalization market, and emerging companies adopting AI technology to promote healthcare digitalization will have promising development prospects in the future.

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The Company believes that the investment in iFlytek Healthcare will further enhance the proportion of information technology and great healthcare related projects in the Company's investment portfolio and accordingly, will further optimise the investment portfolio of the Company.

For and on behalf of

CHINA MERCHANTS CHINA DIRECT

INVESTMENTS LIMITED

WANG Xiaoding

Director

Hong Kong, 30 December 2019

*For identification purposes only

As at the date hereof, the Executive Directors of the Company are Mr. CHU Lap Lik, Victor, Mr. WANG Xiaoding and Mr. TSE Yue Kit; the Non-executive Directors are Mr. ZHANG Jian, Mr. ZHANG Rizhong and Mr. KE Shifeng; and the Independent Non-executive Directors are Mr. LIU Baojie, Mr. TSANG Wah Kwong and Dr. LI Fang. In addition, Ms. KAN Ka Yee, Elizabeth is the Alternate Director to Mr. CHU Lap Lik, Victor.

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