Annual Report 2024

China Merchants China Direct Investments Limited Annual Report 2024 139 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2024 15. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 2024 2023 US$ US$ Equity and debt securities at FVTPL: – listed equities in PRC (Note a) 348,569,986 262,321,922 – listed equity in HK (Note a) 3,501,895 — – listed equity within lock–up period in HK (Note a) 42,610,956 — – listed equity within lock–up period in US (Note a) 28,110,000 — – listed equity on New Third Board (Note a) 1,035,001 1,959,704 – unlisted equities (Notes b and c) 306,007,407 385,783,322 – unlisted participating preferred unit (Note b) 40,520,000 27,900,000 – unlisted debt investment (Note b) 5,297,424 5,349,655 Total 775,652,669 683,314,603 Analysed to reporting purposes as Current assets 4,964,102 84,057,091 Non-current assets 770,688,567 599,257,512 Total 775,652,669 683,314,603 Notes: (a) The listed equity securities represent the Group’s interest held in China Merchants Bank Co., Ltd., iFLYTEK Co., Ltd., Oriental Pearl Media Co., Ltd. and China International Capital Corporation Limited whose fair values are determined based on the quoted market bid prices available on the relevant stock exchanges. The listed equity securities within lock-up period in HK and US represent the Group’s interest held in Xunfei Healthcare Technology Co., Ltd. and Pony AI Inc. subject to trading moratorium, respectively, and whose fair values are determined based on the quoted market bid prices available on the relevant stock exchanges and adjusted for lack of marketability due to their non-circulation. For equity securities listed on the New Third Board, namely Wuhan Rixin Technology Co., Ltd., whose fair value was arrived at by reference to the basis of valuation carried out by an independent valuer not connected with the Group. Determination of fair value is based on the best information available in the circumstances and includes appropriate risk adjustments for lack of marketability. Factors considered in determining the fair value of these investments include multiples of comparable companies listed on stock exchanges. Please refer to note 5 to the consolidated financial statements for further details of the valuation techniques. (b) As at 31 December 2024, fair values of unlisted equity investment amounting to US$15,350,000 (2023: US$122,987,609) were arrived at by reference to their recent transaction prices. For other unlisted investments, their fair values were arrived at on the basis of valuations (including net asset value) carried out by an independent valuer not connected with the Group. Determination of fair value is based on the best information available in the circumstances and includes appropriate risk adjustments for lack of marketability. Factors considered in determining the fair value of these investments include multiples of comparable companies listed on stock exchanges and/or latest available information about financial performance or financial position of investees. (c) As at 31 December 2024, included in unlisted equities investments amounting to US$388,612 (2023: US$399,565) was investment in an associate. The management elected not to apply the equity method and instead the investment is recognised as a financial asset at FVTPL.