Annual Report 2023

16 16 China Merchants China Direct Investments Limited Annual Report 2023 INVESTMENT MANAGER’S DISCUSSION AND ANALYSIS (CONTINUED) REVIEW OF INVESTMENTS (CONTINUED) JIC Leasing Co., Ltd. (“JIC Leasing”) was established in Beijing in 1989 and is a leading independent finance leasing firm in China, principally engaged in finance leasing for businesses in a wide range of industries, including information technology; high-end equipment manufacturing; and healthcare, environmental protection and new energy. The Fund invested RMB246 million (equivalent to US$38.78 million) in October 2015 and held a 4.98% equity interest in JIC Leasing as of 31 December 2023. In December 2023, the Fund received a cash dividend (net of tax) of RMB24.21 million from JIC Leasing for 2022. As of the end of 2023, the carrying value of the Fund’s interest in JIC Leasing was US$14.05 million, representing a decrease of 13.43% from the value at the end of last year of US$16.23 million. The Fund’s unrealised loss attributable to its investment in JIC Leasing for 2023 was negative US$1.92 million, down 42.86% year-over-year. In 2023, JIC Leasing focused on its main business, while seeking to develop its business in alignment with the national strategic direction as well. At all times, JIC Leasing has sought to adhere to a prudent and steady business management style. For 2023, JIC Leasing recorded an unaudited net profit of RMB318 million, down 9.87% year- over-year. 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 2023, the carrying value of the Fund’s interest in China Media Management was US$1.02 million, representing a decrease of 29.66% from the value at the end of last year of US$1.45 million. 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 still actively assisting with exit arrangements for the remaining three projects, namely Star China, Shanghai Oriental DreamWorks Co., Ltd. (“ Oriental DreamWorks ”) and Beijing Weiying Technology Co., Ltd. (“ Weiying ”).