Annual Report 2023

China Merchants China Direct Investments Limited Annual Report 2023 147 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2023 27. RELATED PARTY TRANSACTIONS The Company has appointed the Investment Manager for managing both listed and unlisted investments. Certain Directors of the Company are also Directors and/or shareholders of the Investment Manager. During the year, other than as disclosed elsewhere in the consolidated financial statements, the Group has incurred the following related party transactions: (a) The Company paid or accrued to the Investment Manager management fees totaling US$10,458,859 (2022: US$11,154,282). The fee is calculated based on a fixed percentage on the value of the Group’s adjusted assets on a quarterly basis as stipulated in the Investment Management Agreement (Note). (b) The amount due to the Investment Manager included in other payables in the consolidated statement of financial position as at 31 December 2023 was US$5,383,594 (2022: US$4,959,510). Amount due to the Investment Manager is unsecured, interest free and is repayable on demand. (c) Securities brokerage commission fee totaling US$829 (2022: US$3,619) was paid to a subsidiary of a substantial shareholder of the Company who has significant influence over the Company. (d) Pursuant to the Sub-participation Agreements, the financial liabilities of the Group with Mr. ZHANG Rizhong (resigned as a Director of the Investment Manager on 1 September 2023), Mr. WANG Xiaoding and Mr. TSE Yue Kit, who are Directors of both the Company and the Investment Manager, as at 31 December 2023, were US$47,048, US$218,478 and US$32,218, respectively (31 December 2022: US$29,890, US$177,646 and US$24,986, respectively). The financial liability of the Group with Mr. ZHOU Xing, a Director of the Company, was US$16,608 (31 December 2022: US$28,455). Moreover, the financial liability of the Group with Mr. YANG Baiqian, a Director of the Investment Manager and appointed on 1 September 2023, was US$19,882 (31 December 2022: US$8,525). The financial liability of the Group with Mr. KANG Dong, a Director of the Investment Manager, was US$7,915 (31 December 2022: US$2,842). (e) Key management compensation and services are disclosed in notes 10 and 27(a) to the consolidated financial statements. Note: These related party transactions also constitute continuing connected transactions and are disclosed in accordance with Chapter 14A of the Listing Rules.