Annual Report 2023

China Merchants China Direct Investments Limited Annual Report 2023 127 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) Reconciliation of Level 3 fair value measurements of financial assets: Financial assets at FVTPL US$ Balance at 1 January 2022 481,167,090 Losses recognised in profit or loss (83,669,078) Exchange difference arising on translation to presentation currency (33,732,206) Purchases 10,728,082 Disposals (12,780,861) Return of capital (756,302) Balance at 31 December 2022 360,956,725 Balance at 1 January 2023 360,956,725 Gains recognised in profit or loss 51,753,060 Exchange difference arising on translation to presentation currency (5,444,626) Purchases 17,059,455 Return of capital (3,331,933) Balance at 31 December 2023 420,992,681 Of the total gains for the year included in profit or loss, gain of US$51,753,060 (2022: loss of US$91,290,196) relates to financial assets at FVTPL categorised in Level 3 held at year end. Fair value gains or losses on financial assets at FVTPL are included in “Net loss on financial assets at fair value through profit or loss”. Transfers between levels of the fair value measurement hierarchy are recognised as of the date of the event or change in circumstances that caused the transfer.