Annual Report 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025 130 China Merchants China Direct Investments Limited Annual Report 2025 4. KEY SOURCE OF ESTIMATION UNCERTAINTY The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets within the next financial year are as follows: Fair value of financial assets at FVTPL and financial liabilities designated at FVTPL As indicated in notes 5, 15 and 20, the Group selects appropriate valuation techniques for financial instruments not quoted in an active market. Valuation techniques commonly used by market practitioners are applied. The fair values of unlisted financial assets at FVTPL and financial liabilities designated at FVTPL are determined in accordance with generally accepted pricing models. To the extent practical, models use only market data. However, areas such as specific risk of investees and marketability discount require management to make estimates. Changes in assumptions about these factors could affect the estimated fair value of financial instruments. The values assigned to the financial assets and liabilities are based upon available information and professional judgement. They do not necessarily represent amounts which might ultimately be realised, since such amounts depend on future circumstance and cannot be reasonably determined until the individual position is realised. 5. FINANCIAL INSTRUMENTS Categories of financial instruments 2025 2024 US$ US$ Financial assets At FVTPL 1,013,887,070 775,652,669 Amortised cost 31,748,788 31,112,680 Financial liabilities Amortised cost 2,896,051 6,993,848 Designated at FVTPL 2,240,924 1,153,126