Annual Report 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025 132 China Merchants China Direct Investments Limited Annual Report 2025 5. FINANCIAL INSTRUMENTS (CONTINUED) Market risk (continued) Currency risk (continued) Foreign currency sensitivity For the currency risk of the Group, if RMB had appreciated/depreciated against USD by 5%, the Group’s after taxation result and equity for the year would decrease/increase by US$400,000 (2024: US$90,000). If RMB had appreciated/depreciated against Hong Kong Dollar by 5%, the Group’s after taxation result and equity for the year would decrease/increase by US$104,000 (2024: US$466,000). In the opinion of the management, the sensitivity analysis is unrepresentative of the inherent foreign currency risk as the year end exposure does not reflect the exposure during the year. Interest rate risk The Group is not subject to material fair value interest rate risk as the Group’s fixed interest rate bearing financial assets are measured at amortised cost. The Group is exposed to cash flow interest rate risk through the impact of rate changes on interest bearing financial assets (mainly short-term bank deposits at market rate) at market rates. At 31 December 2025, bank balances of US$9,711,842 (2024: Nil) were interest bearing and withdrawable on demand. Since the prevailing market interest rates are low, the Group considers that the overall interest rate risk is not significant. Interest rate sensitivity No sensitivity analysis on cash flow interest rate risk is prepared as the Group considers the effect would be minimal at the end of the reporting period.