Annual Report 2023

China Merchants China Direct Investments Limited Annual Report 2023 125 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2023 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) 31 December 2023 31 December 2022 Increase(+)/ decrease(-) in fair value of assets if 10% increase/ Increase(+)/ decrease(-) in fair value of assets if 10% increase/ Significant 31 December 31 December Relationship of decrease of the decrease of the 31 December 31 December Fair value Valuation unobservable 2023 2022 unobservable inputs unobservable unobservable Financial assets 2023 2022 hierarchy techniques input(s) Range Range to fair value inputs (Note 2) inputs (Note 2) US$ US$ US$ US$ Financial assets at FVTPL Listed equity securities (Note 1) 262,321,922 329,113,881 Level 1 Quoted bid prices in active market N/A N/A N/A N/A N/A N/A Equity securities (including equity securities traded on the National Equities Exchange and Quotations (“ New Third Board ”) and unlisted equity securities), unlisted preferred equity and participating preferred unit (Note 1) 246,541,647 276,439,769 Level 3 Market comparable companies - Earnings multiples - Revenue multiples - Book value multiples - R&D expense multiples 21.9x - 32.9x 1.5x - 16.8x 0.6x - 2.2x 21.5x 19.1x - 24.7x 1.6x - 10.0x 0.7x - 6.8x N/A The higher the multiples, the higher the fair value +24,405,000/ -24,405,000 +31,075,000/ -31,075,000 - Discount rate for lack of marketability and specific risk 41.1% - 52.9% 43.2% - 54.5% The higher the discount rate, the lower the fair value -18,395,000/ +18,395,000 -26,955,000/ +26,955,000 Unlisted debt investment (Notes 1 and 4) 5,349,655 5,285,300 Level 3 Discounted cash flow - Discount rate 1.0% 2.3% The higher the discount rate, the lower the fair value -3,000/ +3,000 -18,000/ +18,000 Unlisted equity (Note 1) 51,463,425 71,231,656 Level 3 Net asset value - Net asset value of the underlying investments N/A N/A The higher the net asset value, the higher the fair vlaue N/A N/A Unlisted equity securities and unlisted preferred equity (Note 1) 117,637,954 8,000,000 Level 3 Recent transaction price with discount / premium - Discount / premium for events / changes after transaction price 0% 0% The higher the discount / premium, the lower / higher the fair value +11,763,795/ -11,763,795 +800,000/ -800,000 Closing balance 683,314,603 690,070,606