Annual Report 2023

18 18 China Merchants China Direct Investments Limited Annual Report 2023 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 2023, the Fund held a 1% partnership interest in NBA China. The Fund received a cash distribution from NBA China of US$2.05 million and US$2.57 million in the first quarter of both 2023 and 2024, respectively. As of the end of 2023, the carrying value of the Fund’s interest in NBA China was US$27.90 million, representing an increase of 18.12% over US$23.62 million at the end of last year. The Fund’s unrealised loss attributable to its investment in NBA China for 2023 was US$4.28 million, down 61.82% year-over-year. On 21 February 2023, NBA China and Ant Group jointly announced that both parties will enter into a comprehensive strategic partnership, making Alipay a strategic partner of NBA China for digital life. It marks the first time that fans in China have access to NBA video content on Alipay. The two parties will work together to create customised NBA experiences for NBA fans and the vast number of users on Ant Group’s digital platforms by developing NBA video content and program broadcasting, joint membership and mini-program, joint marketing programs through Ant Group’s privacy computing services, digital collectibles, as well as corporate social responsibility initiatives to engage both fans and entire communities. On 4 October 2023, the NBA and Decathlon, a leading global sporting goods retail group, announced that both parties will further expand their multi-year licensed merchandise partnership in order to provide a wider range of officially-licensed NBA products to fans in Africa, Asia (including China), Europe, the Middle East and Latin America. The licensed collection, including products, accessories, basketball footwear, apparel and branded backboards bearing the logo of various NBA teams or league, will be sold exclusively through Decathlon stores and online channels. On 25 December 2023, NBA China and iQOO announced that iQOO has become an official partner of NBA China and that the iQOO Neo9 series mobile phone released on 27 December will be designated as “the official mobile phone of NBA China.”