Annual Report 2021

China Merchants China Direct Investments Limited Annual Report 2021 52 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 2021, 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 (resigned as the Alternate Director of the Company on 13 September 2021) 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 was for a fixed term ended on 31 December 2021. On 18 October 2021, the Company announced that it had on 18 October 2021 entered into an Investment Management Agreement (the “ Revised Management Agreement ”) with the Investment Manager in relation to the proposed re-appointment of the Investment Manager as the investment manager of the Company immediately following the expiry date of the Existing Management Agreement. As the Investment Manager is a connected person of the Company and the transaction contemplated under the Revised Management Agreement constitutes a continuing connected transaction of the Company under Chapter 14A of the Listing Rules, the entering into of the Revised Management Agreement was subject to the reporting, announcement, annual review and independent shareholders’ approval requirements under the Listing Rules. A circular dated 8 November 2021 containing, among others, further details of the Revised Management Agreement, the recommendation of the independent board committee, the advice of the independent financial adviser to the independent board committee and the independent shareholders and a notice convening the extraordinary general meeting to approve the Revised Management Agreement and the proposed annual caps had been distributed to the shareholders of the Company. The independent shareholders of the Company approved the Revised Management Agreement and the proposed annual caps at the extraordinary general meeting held on 29 November 2021. The Revised Management Agreement became effective on 1 January 2022 and is for a fixed term ending on 31 December 2024.