Annual Report 2021

China Merchants China Direct Investments Limited Annual Report 2021 113 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2021 5. FINANCIAL INSTRUMENTS (CONTINUED) Fair value measurement of financial instruments (continued) Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis (continued) 31 December 2021 31 December 2020 Increase(+)/ decrease(-) in fair value of assets if 10% increase/ Increase(+)/ decrease(-) in fair value of assets if 10% increase/ Significant 31 December 31 December Relationship of decrease of the decrease of the 31 December 31 December Fair value Valuation unobservable 2021 2020 unobservable inputs unobservable unobservable Financial assets 2021 2020 hierarchy techniques input(s) Range Range to fair value inputs (Note 2) inputs (Note 2) US$ US$ US$ US$ Unlisted debt investments (Notes 1 and 4) 5,980,463 27,562,108 Level 3 Discounted cash flow - Discount rate 0% 0% - 4.3% The higher the discount rate, the lower the fair value — -33,000/ +33,000 Unlisted equity (Note 1) 57,915,319 46,324,082 Level 3 Net asset value - Net asset value of the underlying investments N/A N/A The higher the net asset value, the higher the fair vlaue N/A N/A Equity securities (including equity securities traded on the New Third Board and unlisted equity securities) (Note 1) 59,796,768 100,775,752 Level 3 Recent transaction price with discount/premium - Discount/premium for events/changes after transaction price 0% 0% The higher the discount/premium, the lower/higher the fair value +5,979,677/ -5,979,677 +10,077,575/ -10,077,575 Closing balance 967,373,378 909,272,978 Note 1: Financial assets at FVTPL represent those investments are measured at fair value with subsequent fair value gains or losses to be recognised in profit or loss. Note 2: Amount represents increase(+)/decrease(-) in fair value of the financial assets if the unobservable inputs were 10% increase/decrease while all the other variables were held constant. Note 3: The analysis of financial liabilities is set out in note 20. Note 4: Pursuant to the agreement, the loan, subject to the fulfillment of certain precedent conditions which are not under the control of the Group, could be converted into equity interest of Qinghai Provincial Qinghai Lake Tourism Group Co., Ltd. Given that the conditions are not under the control of the Group, the Directors consider that the conditions of conversion were not fulfilled as at 31 December 2021.