Interim Report 2023

57 INTERIM REPORT 2023 20. RELATED PARTY TRANSACTIONS (CONTINUED) (b) Transactions with other PRC state-controlled entities A number of subsidiaries of the Company operate in the Mainland China, an economic environment currently predominated by entities controlled, jointly controlled or significantly influenced by the PRC government. These PRC subsidiaries therefore have substantial volumes of transactions with other PRC state-controlled entities during their ordinary course of businesses including but not limited to the purchases of assets, construction of ports and related facilities, bank deposits and borrowings, among others. (c) Key management compensation Six months ended 30 June 2023 2022 HK$’million HK$’million Salaries and other short-term employee benefits 10 9 21. EVENTS AFTER THE REPORTING PERIOD (i) A disposal group classified as held for sale During the period ended 30 June 2023, the Group entered into an Assets and Equity Transfer Agreement with Ningbo Zhoushan Port Company Limited (“Ningbo Port”), an associate of the immediate holding company of the Company, pursuant to which Ningbo Port agreed to purchase and the Group agreed to dispose 45% equity interest in Ningbo Daxie China Merchants International Terminals Co., Ltd. (“Ningbo Daxie”) at a consideration of RMB1,845 million (the “Disposal”). Ningbo Daxie originally is an indirect subsidiary of the Company with its financial results being consolidated into the Group. Upon completion of the Disposal, the Company will no longer hold any interest in Ningbo Daxie, thus Ningbo Daxie will no longer be accounted as a subsidiary in the consolidated financial statements of the Group. The assets and liabilities attributable to Ningbo Daxie, which are expected to be sold within twelve months, have been classified as a disposal group held for sale and are presented separately in the condensed consolidated statement of financial position as at 30 June 2023. In August 2023, the transaction has been completed.