Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 17 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) During the investment period, China Media Management helped China Media Investment to successfully invest in several benchmark projects, and to successfully dispose of the projects of OCJ ( 東方購物 ), Shanghai Jade East Propagation Co., Ltd. and Renren Inc. In addition, it helped IMAX China Holding, Inc. (“ IMAX China ”) to successfully list on the Hong Kong Stock Exchange, and to subsequently sell all of the IMAX China shares that were held. Presently, China Media Management is actively assisting with exit arrangements for three projects, including Star China. China Media Creative Industry Private Equity (Shanghai) Centre (Limited Partnership) (“China Media Investment”) was established in Shanghai, and is the first fund in the culture and media sector approved for registration by the National Development and Reform Commission. Its total capitalisation is RMB2 billion. China Media Investment has an investment horizon of 10 years (Note: With the consent of all limited partners, the investment horizon has been extended two years in order to meet the exit requirements of the projects held). The scope of investment for China Media Investment includes major projects in broadcasting and media publishing, animation and creative media. China Media Management, in which the Fund has an interest, is the general partner and investment manager of China Media Investment. In April 2010, the Fund agreed to make a capital investment of RMB200 million by installment in China Media Investment. From June 2010 through 31 December 2020, the Fund has made successive capital injections into China Media Investment for a cumulative actual investment of RMB158.66 million (equivalent to US$24.76 million), representing 79.33% of the total investment of RMB200 million committed by the Fund. China Media Investment is currently in the late stages of its investment exit period, and the Fund has received confirmation that no further capital contribution shall be required. Through the end of December 2020, the Fund has actually received a total cash distributions of RMB237 million from China Media Investment, representing approximately 149% of the cumulative actual amount invested by the Fund. As of the end of 2020, the carrying value of the Fund’s interest in China Media Investment was US$27.79 million, representing a decrease of 16.80% from the value at the end of last year of US$33.40 million. As of the end of 2020, the unaudited net asset value of China Media Investment was RMB1.813 billion, representing a decrease of 7.92% compared to an audited net asset value as of the end of last year. Through the end of December 2020, China Media Investment had completed a full exit from four projects, while continuing to hold three projects, namely Star China, Shanghai Oriental DreamWorks Co., Ltd. (“ Oriental DreamWorks ”) and Beijing Weiying Technology Co., Ltd. (“ Weiying ”). Of these, Shanghai Canxing Culture Media Co., Ltd., the domestic operating entity of Star China, had submitted the materials to apply for an IPO with the CSRC by the end of December 2018 and updated its prospectus online on 30 December 2020. Next, with respect to the exit from Oriental DreamWorks, China Media Investment transferred part of its equity interest in Oriental DreamWorks to CMC Inc. in December 2019 and the transaction was duly completed in the first quarter of 2020. The consideration for the equity transfer was also distributed to the limited partners in April 2020. Lastly, a plan for the disposal of the equity interest in Weiying is now being implementing.