Annual Report 2024

136 China Merchants China Direct Investments Limited Annual Report 2024 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2024 10. DIRECTORS’ EMOLUMENTS (CONTINUED) Notes: (a) Ms. KAN Ka Yee, Elizabeth has indirect beneficial interests in the Investment Manager which entered into an Investment Management Agreement with the Company on 18 October 2021 and became effective on 1 January 2022 and was for a fixed term of three years. The details of the existing investment management agreement can be referred to the circular dated 8 November 2021. The amount of management fee paid or accrued to the Investment Manager is disclosed in note 27 to the consolidated financial statements. (b) The emoluments for Executive Directors, Non-executive Directors and Independent Non-executive Directors shown above were paid or payable in accordance with their service contracts and for their services as Directors of the Company. (c) There was no arrangement under which the above Directors waived or agreed to waive any remuneration during both years. (d) There was no amount as inducement for the above Directors to join the Company and compensation for the loss of office as Directors in connection with the management of the affairs of the Group during both years. 11. EMPLOYEES’ EMOLUMENTS The five (2023: five) highest paid individuals in the Group were all Directors of the Company and details of their emoluments are included in note 10 above. 12. TAXATION The tax (charge) credit for the year comprises: 2024 2023 US$ US$ The Company and its subsidiaries Current tax: PRC Enterprise Income Tax (4,823,104) (144) Withholding tax for distributed earnings (2,814,548) (2,200,021) Deferred taxation (note 21) Current year (20,346,912) 9,020,498 Total (27,984,564) 6,820,333 No provision for taxation in Hong Kong has been made as the Company and its subsidiaries did not have assessable profits for both years. PRC Enterprise Income Tax in the PRC is calculated at the rates prevailing in the relevant regions. Under the Law of the PRC on Enterprise Income Tax, withholding tax is imposed on dividends declared in respect of profits earned by PRC subsidiaries from 1 January 2008 onwards. Deferred taxation has been provided for in the consolidated financial statements in respect of temporary differences attributable to retained profits of the PRC subsidiaries.