Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 50 DIRECTORS’ REPORT (CONTINUED) PUBLIC FLOAT Based on the information that is publicly available to the Company and within the knowledge of its Directors, throughout the year of 2020, there is sufficient public float of not less than 25% of the Company’s issued shares as required under the Listing Rules. CONTINUING CONNECTED TRANSACTION During the year, the Group had the following continuing connected transaction, certain details of which are disclosed in compliance with the requirements of Chapter 14A of the Listing Rules. Investment Management Agreement China Merchants China Investment Management Limited, a company incorporated in Hong Kong, is the Investment Manager of the Company for both listed and unlisted investments. Mr. ZHANG Rizhong, Mr. WANG Xiaoding, Mr. TSE Yue Kit, Ms. KAN Ka Yee, Elizabeth and Mr. CHU Lap Lik, Victor, are Directors of both the Company and the Investment Manager. Ms. KAN Ka Yee, Elizabeth and Mr. CHU Lap Lik, Victor have indirect beneficial interests in the Investment Manager. The Investment Manager is a connected person of the Company under Rule 14A.08 of the Listing Rules. The existing Investment Management Agreement entered into between the Company and the Investment Manager (the “ Existing Management Agreement ”) on 18 October 2018 became effective on 1 January 2019 and is for a fixed term ending on 31 December 2021. For the year ended 31 December 2020, the management fees which were calculated based on a fixed percentage on the value of the Group’s adjusted assets on a quarterly basis as stipulated in the Existing Management Agreement totaling US$11,511,019 (2019: US$11,032,351) were paid or payable to the Investment Manager. A performance fee of US$9,587,735 (2019: Nil) was accrued by the Company under the Existing Management Agreement. It was calculated based on a fixed percentage on the agreed increment of the Group’s net asset value after certain adjustments as stipulated in the Existing Management Agreement. The Independent Non-executive Directors have reviewed the above continuing connected transaction and have confirmed that the transaction has been entered into: 1. in the ordinary and usual course of the business of the Company and its subsidiaries; 2. on normal commercial terms or better; and 3. in accordance with the agreement governing them on terms that are fair and reasonable and in the interests of the shareholders of the Company as a whole.