As of December 31, 2019, 2020 and 2021 and September 30, 2022, we had financial assets measured at fair value through profit or loss of US$0.6 million, US$1.4 million, US$1.5 million and US$1.5 million, respectively, representing the fair value of the deposit component of certain life insurance products we purchased from a licensed insurance company in Hong Kong, pursuant to which we are entitled to a guaranteed minimum return, as well as an unguaranteed investment return.
Financial Information · p. 317
The Level 3 fair value measurement of the deposit component of the insurance contracts held by our Group during the Track Record Period was measured based on the value in the statements provided by the insurance company.
Financial Information · p. 318
Our Directors have conducted the following to be satisfied with the reasonableness of the valuation of such financial assets within Level 3 of fair value measurement: (i) reviewing the terms of the insurance contracts, (ii) obtaining the statement from the insurance company and checking the balances of the deposit component of the insurance contracts, and (iii) considering our internal controls over the investment of such insurance contracts.
As at December 31, 2019, 2020 and 2021 and as at September 30, 2022, our financial assets at fair value through profit or loss was approximately USD2.0 million, USD2.4 million, USD3.3 million, and USD1.3 million, respectively.
Financial Information · p. 449
The fair value assessment of SEACON SINGAPORE and SEACON QINGDAO Bareboat Charter Agreements that are measured at level 3 fair value hierarchy requires significant estimates, which include risk-free rates, expected volatility, market information of recent transactions and other assumptions.
Financial Information · p. 449
At least once a year, our finance department uses valuation techniques to determine the fair value of our level 3 instruments and reports to senior management and our Directors.
Our financial assets at fair value through profit or loss were RMB127.4 million, RMB398.4 million, RMB801.4 million and RMB810.4 million as of December 31, 2019, 2020, 2021 and October 31, 2022, respectively.
Financial Information · p. 394
All the wealth management products that we invested in during the Track Record Period were issued by Ping An Bank and China Merchants Bank, and were not principal protected.
Financial Information · p. 396
Amounts invested in high-risk products should not exceed 10% of the total investable amount. Amounts invested in high-risk and medium-risk products combined should not exceed 50% of the total investable amount.
Financial assets at fair value through profit or loss ("FVTPL") primarily consist of low-risk wealth management products issued by some of the major banks in the PRC, such as China Everbright Bank and Ping An Bank. Such wealth management products generally have a term of less than a month.
Financial Information · p. 413
Our financial assets at FVTPL balances increased from RMB5.0 million as of December 31, 2021 to RMB110.0 million as of September 30, 2022, primarily attributable to the significant increase in our investments in certain wealth management products in the nine months ended September 30, 2022.
We have in place an internal investment policy regarding the supervision and approval process for our investments and we have implemented prudent investment strategies during the course of our business.