Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 16 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) On 29 October 2020, China Re announced that the unaudited net profit for its insurance business for the first three quarters of 2020 was RMB6.20 billion, up 37.26% year-over-year. On 9 December 2020, China Re announced that its subsidiary, China Property and Casualty Reinsurance Co., Ltd. (“ China Re P&C ”), had successfully issued capital supplementary bonds in the nation’s inter-bank bond market, with a principal amount of RMB4 billion. The funds raised by the issuance of the capital supplementary bonds will be used to supplement the capital of China Re P&C in accordance with applicable laws and approval by regulatory authorities so as to improve its solvency and support the sustainable and steady development of its business. China UnionPay Co., Ltd. (“China UnionPay”) was established in March 2002, with its headquarters in Shanghai. It is a leading enterprise in the financial payment industry and is responsible for the construction and operation of a nationwide unified inter-bank information exchange network for bank cards, the provision of professional services related to inter-bank information exchange for bank cards, the management and operation of the “UnionPay” brand name, and the formulation of business specifications and technical standards for inter-bank transactions for bank cards. The Fund invested RMB220 million (equivalent to US$31.12 million) in June 2020 for a 0.17% equity interest in China UnionPay. In December 2020, the Fund received a cash dividend of RMB0.90 million from China UnionPay for 2019. As of the end of 2020, the carrying value of the Fund’s interest in China UnionPay was US$47.19 million. The Fund’s unrealised gain attributable to its investment in China UnionPay for 2020 was US$12.74 million. China UnionPay was recognised as a “High-tech Enterprise” for several consecutive years and the UnionPay E-commerce and E-Payment National Engineering Laboratory is currently the only national engineering laboratory in the finance industry in China, which undertakes a series of national-level key scientific research projects such as national cloud computing demonstration project and national science and technology support plan. In August 2020, China UnionPay announced that users of its Mobile QuickPass APP had exceeded 300 million. In the same month, China UnionPay’s subsidiary, UnionPay International Co., Ltd., announced that it had partnered with livi bank, a virtual bank in Hong Kong, to issue UnionPay virtual debit cards. It is the first time that a virtual bank in Hong Kong has issued UnionPay cards. China Media (Tianjin) Investment Management Co., Ltd. (“China Media Management”) was established in Tianjin, with registered capital of RMB60 million. The Fund invested RMB4.62 million (equivalent to US$0.68 million) in April 2010 for a 7.70% equity interest in China Media Management. As the general partner and investment manager of China Media Investment (see the section on China Media Investment below), China Media Management is responsible for defining and executing the investment strategy for China Media Investment, as well as for managing their operations. In June 2020, the Fund received a cash dividend of RMB10.45 million from China Media Management. As of the end of 2020, the carrying value of the Fund’s interest in China Media Management was US$1.35 million, representing a decrease of 37.50% from the value at the end of last year of US$2.16 million.