Annual Report 2024

China Merchants China Direct Investments Limited Annual Report 2024 127 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2024 5. FINANCIAL INSTRUMENTS (CONTINUED) Fair value measurement of financial instruments Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis Most of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation techniques and inputs used), as well as the level of the fair value hierarchy into which the fair value measurements are categorised (Levels 1 to 3) based on the degree to which the inputs to the fair value measurements are observable. 31 December 2024 31 December 2023 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 2024 2023 unobservable inputs unobservable unobservable Financial assets 2024 2023 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) 352,071,881 262,321,922 Level 1 Quoted bid prices in active market N/A N/A N/A N/A N/A N/A Listed equity securities within lock-up period (Note 1) 70,720,956 — Level 2 Quoted bid prices in active market and adjusted for lack of marketability - Discount rate for lack of marketability 9.1%-13.9% N/A The higher the discount rate, the lower the fair value -1,817,000/ +1,817,000 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) 287,967,026 246,541,647 Level 3 Market comparable companies - Earnings multiples - Revenue multiples - Book value multiples - R&D expense multiples - AUM multiples - Discount rate for lack of marketability and specific risk 25.7x - 37.4x 1.6x - 5.9x 0.9x - 6.9x 11.3x 0.01x 50.1% 21.9x - 32.9x 1.5x - 16.8x 0.6x - 2.2x 21.5x N/A 41.1% - 52.9% The higher the multiples, the higher the fair value The higher the discount rate, the lower the fair value +17,924,000/ -17,924,000 -9,531,000/ +9,531,000 +24,405,000/ -24,405,000 -18,395,000/ +18,395,000 Unlisted equity (Note 1) 49,542,806 56,813,080 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 value +4,425,000/ -4,425,000 +5,146,000/ -5,146,000 Unlisted equity securities and unlisted preferred equity (Note 1) 15,350,000 117,637,954 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 +1,535,000/ -1,535,000 +11,763,795/ -11,763,795 Closing balance 775,652,669 683,314,603