Annual Report 2021

China Merchants China Direct Investments Limited Annual Report 2021 17 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) On 28 December 2021, China Re announced the “Digital China Re 2.0” strategy, and has formulated new digital transformation framework and organisational reforms, along with better data capitalisation and the adoption of new business platforms and ecosystems, with a view to achieving a digital transformation of China Re by the end of 2025. 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. As of the end of 2021, the carrying value of the Fund’s interest in China Media Management was US$1.75 million, representing an increase of 29.63% over US$1.35 million at the end of last year. During the investment period, China Media Management helped China Media Investment to invest in an aggregate of seven projects, and also completed the disposal of four projects, namely OCJ ( 東方購物 ), Shanghai Jade East Propagation Co., Ltd., Renren Inc. and IMAX China Holding, Inc. Presently, China Media Management is actively assisting with exit arrangements for the projects of Star China, Shanghai Oriental DreamWorks Co., Ltd. (“ Oriental DreamWorks ”) and Beijing Weiying Technology Co., Ltd. (“ Weiying ”). 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 twice for a total of four 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, representing 10% of the total capitalisation of China Media Investment. Since June 2010, the Fund had made successive capital injections into China Media Investment for an aggregate 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. In addition, through the end of December 2021, the Fund 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 2021, the carrying value of the Fund’s interest in China Media Investment was US$27.61 million, representing a decrease of 0.65% from the value at the end of last year of US$27.79 million. As of the end of 2021, the unaudited net asset value of China Media Investment was RMB1,738 million, representing a decrease of 1.61% compared to an audited net asset value as of the end of last year.