Annual Report 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025 China Merchants China Direct Investments Limited Annual Report 2025 135 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 2025 31 December 2024 Financial assets 31 December 2025 31 December 2024 Fair value hierarchy Valuation techniques Significant unobservable input(s) 31 December 2025 Range 31 December 2024 Range Relationship of unobservable inputs to fair value Increase(+)/ decrease(-) in fair value of assets if 10% increase/ decrease of the unobservable inputs (Note 2) Increase(+)/ decrease(-) in fair value of assets if 10% increase/ decrease of the unobservable inputs (Note 2) US$ US$ US$ US$ Financial assets at FVTPL Listed equity securities (Note 1) 444,877,624 352,071,881 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) 186,990,244 70,720,956 Level 2 Quoted bid prices in active market and adjusted for lack of marketability - Discount rate for lack of marketability 4.4% 9.1%-13.9% The higher the discount rate, the lower the fair value -858,000/ +858,000 -1,817,000/ +1,817,000 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) 305,030,693 287,967,026 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 20.7x 2.1x - 29.2x 0.9x - 6.2x 20.2x 0.01x 46.5% 25.7x - 37.4x 1.6x - 5.9x 0.9x - 6.9x 11.3x 0.01x 50.1% The higher the multiples, the higher the fair value The higher the discount rate, the lower the fair value +18,635,000/ -18,635,000 -3,296,000/ +3,296,000 +17,924,000/ -17,924,000 -9,531,000/ +9,531,000 Unlisted equity (Note 1) 39,524,528 49,542,806 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 +3,952,000/ -3,952,000 +4,425,000/ -4,425,000 Unlisted equity securities and unlisted preferred equity (Note 1) 37,463,981 15,350,000 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 +3,746,000/ -3,746,000 +1,535,000/ -1,535,000 Closing balance 1,013,887,070 775,652,669