Annual Report 2022

119 China Merchants China Direct Investments Limited Annual Report 2022 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2022 5. FINANCIAL INSTRUMENTS (CONTINUED) Fair value measurement of financial instruments (continued) Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis (continued) Note 1: Financial assets at FVTPL represent those investments are measured at fair value with subsequent fair value gains or losses to be recognised in profit or loss. Note 2: Amount represents increase(+)/decrease(-) in fair value of the financial assets if the unobservable inputs were 10% increase/decrease while all the other variables were held constant. Note 3: The analysis of financial liabilities is set out in note 20. Note 4: Pursuant to the agreement, the loan, subject to the fulfillment of certain precedent conditions which are not under the control of the Group, could be converted into equity interest of Qinghai Provincial Qinghai Lake Tourism Group Co., Ltd. Given that the conditions are not under the control of the Group, the Directors consider that the conditions of conversion were not fulfilled as at 31 December 2022. The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the consolidated financial statements approximate their fair values at both year ends. Level 1 Level 2 Level 3 2022 Total US$ US$ US$ US$ Financial assets at FVTPL 329,113,881 — 360,956,725 690,070,606 Financial liabilities designated at FVTPL 71,176 — 801,240 872,416 Level 1 Level 2 Level 3 2021 Total US$ US$ US$ US$ Financial assets at FVTPL 486,206,288 — 481,167,090 967,373,378 Financial liabilities designated at FVTPL 132,954 — 1,185,610 1,318,564