Interim Report 2023

58 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Notes to the Condensed Consolidated Interim Financial Information For the six months ended 30 June 2023 21. EVENTS AFTER THE REPORTING PERIOD (CONTINUED) (ii) Establishment of a subsidiary engaged in logistics hub in Sri Lanka During the period ended 30 June 2023, Fortune Centre Group Limited, a wholly-owned subsidiary of the Company, entered into a shareholders agreement (the “Shareholders Agreement”) with Access Engineering PLC and Sri Lanka Ports Authority, in relation to the establishment and governance of the project company for the implementation of the South Asia Commercial and Logistics Hub Project (“SACLH Project”). The project company will be responsible for the financing, design, construction, development, operation, management and maintenance of the SACLH Project as a public private partnership on a “Build-Operate-Transfer” basis. The SACLH Project involves the development of the “South Asia Commercial and Logistics Hub”, a logistics centre in the Port of Colombo, which is located at the Western coast of Sri Lanka. Pursuant to the Shareholders Agreement, the Group shall have 70% interest in the project company and shall provide a capital contribution on a pro rata basis as disclosed in note 19(b). The project company will become a subsidiary of the Group as the Group has the right to appoint the majority of board members of the board of directors, which is the authority to have power to direct the relevant activities of the project company. In July 2023, a supplementary agreement to the Shareholders Agreement was entered and the total initial capital of the project company changed from USD84 million to USD78.9 million. Up to the date this condensed consolidated interim financial information were authorised for issuance, the Group has injected USD12 million.