Unlocking Value

On our Xueqiu post, a netizen expressed her surprise that the Manager of China Merchants China Direct Investments (CMCDI, 133 HK) is a joint venture between China Merchants Group (through associates) and Victor Chu’s company:

Our friend on Xueqiu will be even more shocked to learn that: Victor Chu actually gets a far bigger share of the management fees and performance fees than China Merchants Group.

Yes, the Manager is a joint venture between China Merchants Capital Investment Co., Ltd. (“China Merchants Capital”, which owns 55% of the Manager) and Victor Chu China Investment Limited (VCCI, which owns 45%).

Unsurprisingly, VCCI is owned by Victor Chu and Elizabeth Kan (who is Victor’s lieutenant).

Interestingly, China Merchants Capital is not even entirely owned by China Merchants Group. In 2019, GLP bought a 50% stake in China Merchants Capital in a strategic partnership. GLP (formerly Global Logistic Properties) is the logistics property giant and owned by Hopu, Hillhouse, Bank of China and Vanke based on the latest disclosure.

All of the above facts can be found here and here.

That means each of China Merchants Group and GLP only owns 27.5% (half of 55%) effective shareholding in CMCDI’s Manager.

In FY2023, the Manager earned US$ 10.46m of management fees from CMCDI. This table shows how much fees went to whom:

Shareholder	Effective shareholding in the CMCDI manager	Effective share of fee revenue in 2023
Victor Chu + Elizabeth Kan	45%	US$ 4.71m
China Merchants Group	27.5%	US$ 2.88m
GLP	27.5%	US$ 2.88m
Total	100%	US$ 10.46m

We, Argyle Street Management, will let you decide whether this is fair or not.

Finally: the annual general meeting of CMCDI will take place on 20 June 2024. Elizabeth Kan is trying to get e-elected as an executive director. We will vote AGAINST her.

Visit us:  UnlockValueChinaMerchants.com

Write to us:  ChinaMerchants@asmhk.com

---

在我们的雪球帖子上，一位网友表达了她对招商局中国基金（133 HK，“中国基金”）的投资经理是招商局集团（通过关联公司）和诸立力先生（“诸先生”，英文名Victor Chu Lap Lik）的合资公司的事情感到震惊。

我们在雪球上的朋友将更加震惊地了解到：诸先生实际上获得的管理费和绩效费远比招商局集团要多得多。

中国基金的投资经理是招商局资本投资有限责任公司（“招商资本”，持有55%股份）和Victor Chu China Investment Limited（VCCI，持有45%股份）的合资企业。

VCCI由诸先生和簡家宜女士（诸先生的副手，“简女士”）共同拥有。

有趣的是，招商资本并非100%由招商局集团持有。在2019年，普洛斯（GLP）战略投资招商资本，增资后，普洛斯对招商资本的持股比例为50%。普洛斯（英文曾称Global Logistic Properties）是物流地产行业的巨头。根据最新披露，普洛斯由厚朴投资、高瓴资本、中银投资和万科共同组成财团持有。

以上所有信息可以在这里和这里找到。

这意味着招商局集团和普洛斯对投资经理的有效持股分别仅为27.5%（55%的一半）。

在2023财年，投资经理从中国基金获得了1,046万美元的管理费。以下表格显示了费用分配情况：

股东	于投资经理的 有效持股	2023年的 对应收入
诸先生和简女士	45%	471万美元
招商局集团	27.5%	288万美元
普洛斯	27.5%	288万美元
总计	100%	1,046万美元

我们，Argyle Street Management，将留给您决定这是否公平。

最后：中国基金的股东周年大会将于2024年6月20日举行。简女士正试图重选为执行董事。我们将反对重选簡家宜女士为董事。

访问我们:  UnlockValueChinaMerchants.com

电邮我们:  ChinaMerchants@asmhk.com