Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 135 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020 28. RELATED PARTY TRANSACTIONS The Company has appointed the Investment Manager for managing both listed and unlisted investments. Certain Directors of the Company are also Directors and/or shareholders of the Investment Manager. During the year, other than as disclosed elsewhere in the consolidated financial statements, the Group has incurred the following related party transactions: (a) The Company paid or accrued to the Investment Manager management fees totaling US$11,511,019 (2019: US$11,032,351). The fee is calculated based on a fixed percentage on the value of the Group’s adjusted assets on a quarterly basis as stipulated in the Investment Management Agreement (Note). (b) A performance fee of US$9,587,735 (2019: Nil) is provided for the year 2020 and is payable to the Investment Manager. The fee is calculated based on a fixed percentage on the agreed increment of the Group’s net asset value after certain adjustments as stipulated in the Investment Management Agreement (Note). (c) The amount due to the Investment Manager included in other payables in the consolidated statement of financial position as at 31 December 2020 was US$13,011,305 (2019: US$2,740,492). Amount due to the Investment Manager is unsecured, interest free and is repayable on demand. (d) Securities brokerage commission fee totaling US$2,777 (2019: US$7,283) was paid to a subsidiary of a substantial shareholder of the Company who has significant influence over the Company. (e) Pursuant to the Sub-participation Agreements, the financial liabilities of the Group with Mr. ZHANG Rizhong, Mr. WANG Xiaoding and Mr. TSE Yue Kit, who are Directors of both the Company and the Investment Manager, as at 31 December 2020, were US$53,084, US$316,300 and US$37,360, respectively (31 December 2019: US$19,938, US$231,276 and US$23,755, respectively). Moreover, the financial liability of the Group with Mr. LAW Hung Kuen, Janson, a Director of the Investment Manager, was US$52,577 (31 December 2019: US$21,225). (f) Key management compensation and services are disclosed in notes 10, 28(a) and (b) to the consolidated financial statements. Note: These related party transactions also constitute continuing connected transactions and are disclosed in accordance with Chapter 14A of the Listing Rules.