Annual Report 2024

18 China Merchants China Direct Investments Limited Annual Report 2024 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) NBA China, L.P. (“NBA China”) is a limited liability partnership incorporated in the Cayman Islands in 2007. NBA China conducts all of the NBA’s businesses in the Greater China Region, including television broadcasting rights, advertising, sponsorships, events, digital media, and merchandising, among other new businesses. The original investment by the Fund in 2008 was US$23 million, representing a 1% partnership interest in NBA China. The Fund subsequently received returns of capital from NBA China for a cumulative amount of US$23 million in 2017, representing a full recovery of the capital invested in NBA China by the Fund. As of 31 December 2024, the Fund held a 1% partnership interest in NBA China. The Fund received a cash distribution from NBA China of US$2.57 million and US$3.01 million in the first quarter of both 2024 and 2025, respectively. As of the end of 2024, the carrying value of the Fund’s interest in NBA China was US$40.52 million, representing an increase of 45.23% over US$27.90 million at the end of last year. The Fund’s unrealised gain attributable to its investment in NBA China for 2024 was US$12.62 million, up 194.86% year-over-year. On 17 May 2024, NBA China and eHi, a national direct car rental brand, jointly announced that both parties have entered into a multi-year strategic cooperation relationship, with eHi becoming an official marketing partner and car rental service partner of NBA China. In the future, both parties will engage in long-term and comprehensive market cooperation, both online and offline. Through this collaboration, eHi expects to strengthen its connection with customers through NBA-branded events, as well as through marketing initiatives that will drive innovation and deliver more diverse and flexible travel solutions for fans and users. On 18 October 2024, the NBA and Tencent reached a renewal agreement, with Tencent continuing as the “NBA China’s Digital Media Exclusive Official Partner” and engaging in in-depth strategic cooperation with the NBA until 2027. On 6 December 2024, the NBA and Sands China announced a multi-year collaboration to bring the NBA China Games to Macao beginning in 2025, when the Brooklyn Nets and the Phoenix Suns will play two preseason games on 10 and 12 October 2025 at The Venetian Arena. This marks the return of the NBA China Games to China after a six-year hiatus, since 2019.