Annual Report 2019

China Merchants China Direct Investments Limited Annual Report 2019 117 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2019 21. FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS The financial liabilities designated at FVTPL as at 31 December 2019 were related to the sub-participation agreements (the “ Sub-participation Agreements ”) entered into between the Company and the participants in respect of the investments by the Group in 北京銀廣通廣告有限公司 (Unibank Media Group Inc.), 武漢 日新科技股份有限公司 (Wuhan Rixin Technology Co., Ltd.), 華人文化 ( 天津 ) 投資管理有限公司 (China Media (Tianjin) Investment Management Co., Ltd.), 深圳吉陽智能科技有限公司 (Shenzhen Geesun Intelligent Technology Co., Ltd.), 華人文化產業股權投資 ( 上海 ) 中心 ( 有限合夥 ) (China Media Creative Industry Private Equity (Shanghai) Centre (Limited Partnership)), 江蘇華爾石英材料股份有限公司 (Jiangsu Huaer Quartz Materials Co., Ltd.), 西安金源電氣股份有限公司 (Xi’an Jinpower Electrical Co., Ltd.), 遼寧振隆特產股份有限 公司 (Liaoning Zhenlong Native Produce Holding Company Ltd.), 能通科技股份有限公司 (NTong Technology Co., Ltd.), 華勁集團股份有限公司 (Hwagain Group Co., Ltd.), 新疆承天農牧業發展股份有限公司 (Xinjiang Chengtian Agriculture & Animal Husbandry Development Co., Ltd.), 廣西新華幼兒教育投資有限公司 (Guangxi Xinhua Preschool Education Investment Corporation Limited), 東方明珠新媒體股份有限公司 (Oriental Pearl Media Co., Ltd.), 中建投租賃股份有限公司 (JIC Leasing Co., Ltd.), 中國再保險 ( 集團 ) 股份有限公司 (China Reinsurance (Group) Corporation), 雲南金瀾湄國際旅遊投資開發有限公司 (Yunnan Jinlanmei International Travel Investment Development Co., Ltd.), 科大訊飛股份有限公司 (Iflytek Co., Ltd.), 安徽科訊創業投資基金 合夥企業 ( 有限合夥 ) (Anhui Iflytek Venture Capital LLP), 榮寶齋文化有限公司 (Rong Bao Zhai Culture Co., Ltd.), 青海省青海湖旅遊集團有限公司 (Qinghai Provincial Qinghai Lake Tourism Group Co., Ltd.), 寧波梅 山保稅港區將門創業投資中心 ( 有限合夥 ) (Ningbo Meishan Free Trade Port Area Jiangmen Venture Capital LLP), 中科寒武紀科技股份有限公司 (CAS Cambricon Techonology Co., Ltd.), Pony AI Inc., 深圳嵐鋒創視 網絡科技有限公司 (Shenzhen Arashi Vision Co., Ltd.) and 安徽科大訊飛醫療信息技術有限公司 (Anhui iFlytek Healthcare Information Technology Co., Ltd.) (collectively referred to as the “ Project Companies ”). All above mentioned investments by the Group in the Project Companies are classified as financial assets at FVTPL categorised in Level 1 or Level 3. The classification and fair value of the Sub-participation Agreements are associated directly with these underlying investments and their valuation details are set out in note 5. As the Group considers that the Group’s exposure to price risk of such financial liabilities is insignificant, no sensitivity analysis on price risk of such financial liabilities is presented. As at 31 December 2019 and 2018, the financial liabilities designated at FVTPL are classified as non-current liabilities and presented in the consolidated statement of financial position. Pursuant to the Sub-participation Agreements, the participants will receive a portion of the return (in the form of dividends, interest, or other distributions or proceeds from realisation) from the Group’s investment in the Project Companies that is proportional to the amount provided by the participants to the Group as a percentage of the total Group’s investment in the Project Companies. If the Group suffers a loss from its investment in the Project Companies, the participants will correspondingly share a loss in the amount they provided to the Group on a pro rata basis. In general, the Sub-participation Agreements would be terminated upon the realisation of the Group’s investment in the Project Companies. Details of the Sub-participation Agreements are disclosed in the section of Investment Manager’s Discussion and Analysis and under the heading of Sub-participation Scheme.