[22] Other financial assets

Other financial assets break down as follows:

Financial investments comprise the equity investments in Shanghai Quicktron Intelligent Technology Co., Ltd (fair value of €45.1 million; December 31, 2022: €25.9 million) and Zhejiang EP Equipment Co., Ltd. (fair value of €34.1 million; December 31, 2022: €30.0 million). These equity investments, which have been assigned to the FVOCI category under IFRS 9 owing to the strategic partnerships with the companies, are recognized at fair value through other comprehensive income without recycling to profit or loss upon disposal. The shares in Balyo SA that had been included in the financial investments in 2022 were sold in November 2023.

Finance receivables largely relate to loans to equity-accounted investments and loans to non-consolidated subsidiaries.

Other financial investments comprise long-term investments that are held in order to cover the defined benefit obligation and do not qualify as plan assets.

Derivative financial instruments comprise currency forwards and interest-rate swaps with a positive fair value that are used to reduce currency risk and interest-rate risk. Some of these derivative financial instruments are part of a formally documented hedge with a hedged item and are recognized in accordance with the hedge accounting rules. The decrease in derivative financial instruments was primarily attributable to interest-rate swaps and to falls in the yield curves used for measurement in the currency areas relevant to the KION Group (see note [42]).