Annual Report 2019

China Merchants China Direct Investments Limited Annual Report 2019 125 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2019 30. PARTICULARS OF SUBSIDIARIES (CONTINUED) Name Classes of shares held Place of incorporation/ registration and operation Principal activities Issued and paid-up capital Name of Directors Shenzhen Tian Zheng Investment Co., Ltd. Registered capital PRC/PRC Investment holding RMB700,000,000 (Indirectly owned limited liability company) Mr. WEI Pengchong ** Mr. SHEN Qi ## Wisetech Limited Ordinary BVI/PRC Investment holding US$1 (Directly owned limited liability company) Mr. WANG Xiaoding Ms. HO Man Yi Xinjiang Tian Hong Equity Investment Co., Ltd. Registered capital PRC/PRC Investment holding RMB30,000,000 (Indirectly owned limited liability company) Mr. WEI Pengchong ** Mr. SHEN Qi ## None of the subsidiaries had any debt securities subsisting at 31 December 2019 and 2018 or at any time during the year. * The Director was appointed during the year 2019. ** The Director was appointed during the year 2018. # The Director resigned during the year 2019. ## The Director resigned during the year 2018. 31. CAPITAL RISK MANAGEMENT The Group manages the capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The capital structure of the Group is equity attributable to owners of the Company, comprising share capital, reserves and retained profits as disclosed in the consolidated statement of changes in equity. The Directors review the capital structure by considering the cost of capital and the risks associated with capital. In view of this, the Group will balance its overall capital structure through new shares issues as well as the issue of new debt. The Group’s overall strategy remains unchanged throughout the year. 32. SUBSEQUENT EVENTS AFTER REPORTING PERIOD (a) On 27 February 2020, the transfer of a 3% equity interest in iFlytek Healthcare was duly completed. (b) The Group primarily invests directly in investment projects in the PRC, mostly for long-term. The Group has made an assessment on the outbreak of novel coronavirus, and considers that as the Group has a relatively strong liquidity, the epidemic should not have a material impact on the Group’s financial stability. However, various asset price risks, arising from volatility in the capital markets, will result in the fluctuation of fair value with respect to the investment projects held by the Group. It, in turn, will cause fluctuation in the net asset value of the Group.