Annual Report 2024

China Merchants China Direct Investments Limited Annual Report 2024 137 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 12. TAXATION (CONTINUED) The tax (charge) credit for the year can be reconciled to the profit (loss) before taxation per the consolidated statement of profit or loss and other comprehensive income as follows: 2024 2023 US$ US$ Profit (loss) before taxation 148,335,878 (1,094,022) Tax at the domestic income tax rate of 25% (2023: 25%) (Note) (37,083,969) 273,506 Tax effect of expenses not deductible for tax purpose (3,452,962) (3,174,098) Tax effect of income not taxable for tax purpose 6,350,475 5,297,711 Tax effect of tax losses not recognised (1,214,594) (129,490) Utilisation of tax losses not recognised 374,064 — Withholding tax for undistributed earnings of PRC subsidiaries (31,714) 1,944,240 Withholding tax for distributed earnings (2,814,548) (2,200,021) Effect of different tax rates of the Company and its subsidiaries operating in other regions in the PRC 9,870,148 4,808,485 Over provision in prior years 18,536 — Taxation (27,984,564) 6,820,333 Note: The domestic tax rate (which is PRC Enterprise Income Tax rate applicable to the Company’s major subsidiaries in the PRC) represents the tax rate in the jurisdiction where the investments of the Group are substantially located.