Interim Report 2023

55 INTERIM REPORT 2023 20. RELATED PARTY TRANSACTIONS The directors of the Company regard CMG, a state-owned enterprise registered in the PRC and is controlled by the PRC government, as being the ultimate holding company of the Company. Related parties refer to entities in which CMG has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions, or directors or officers of the Company and its subsidiaries. Other than as disclosed elsewhere in this condensed consolidated interim financial information, a summary of significant related party transactions entered into in the normal course of business between the Group and its related parties during the period and balances arising from related transactions as at 30 June 2023 are as follows: (a) Balances and transactions with associates and joint ventures of the Group and with CMG, its subsidiaries, associates and joint ventures (collectively referred to as the “CMG Group”) Six months ended 30 June Note 2023 2022 HK$’million HK$’million Rental income from (i) – fellow subsidiaries 27 24 – associates 2 — – joint ventures 11 9 Interest expenses on lease liabilities (i) – fellow subsidiaries 1 3 Expenses relating to short-term leases (i) – fellow subsidiaries 4 4 Service income from (ii) – fellow subsidiaries 46 57 – associates 12 5 – joint ventures 35 39 – related parties 22 — Service fees paid to (iii) – fellow subsidiaries 56 28 – associates 33 34 – joint ventures 9 10 – related parties 19 20 Interest income from – a fellow subsidiary (iv) 10 5 – associates (v) 101 100 – a joint venture (v) 28 36 – related parties (vi) 9 10 Interest expenses and upfront fees paid to (vii) – immediate holding company 12 28 – fellow subsidiaries 10 6