Annual Report 2021

China Merchants China Direct Investments Limited Annual Report 2021 137 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2021 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$13,971,923 (2020: US$11,511,019). 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$4,906,543 (2020: US$9,587,735) is provided for the year 2021 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 2021 was US$8,470,460 (2020: US$13,011,305). Amount due to the Investment Manager is unsecured, interest free and is repayable on demand. (d) Securities brokerage commission fee totaling US$329 (2020: US$2,777) 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 2021, were US$49,930, US$275,032 and US$38,887, respectively (31 December 2020: US$53,084, US$316,300 and US$37,360, respectively). The financial liability of the Group with Mr. ZHOU Xing, a Director of the Company and appointed on 26 April 2021, was US$38,571 (31 December 2020: US$48,363). Moreover, the financial liabilities of the Group with Mr. KANG Dong, a Director of the Investment Manager and appointed on 23 August 2021, and Mr. LAW Hung Kuen, Janson, a Director of the Investment Manager and resigned on 23 August 2021, were US$4,474 and US$57,555, respectively (31 December 2020: Nil and US$52,577, respectively). (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.