Annual Report 2021

ANNUAL REPORT 2021 193 41. 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 these consolidated financial statements, a summary of significant related party transactions entered into in the normal course of business between the Group and its related parties during the year and balances arising from related transactions as at 31 December 2021 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”) Note 2021 2020 HK$’million HK$’million Rental income from (i) – fellow subsidiaries 51 42 – an associate — 1 – joint ventures 16 15 Interest expenses on lease liabilities (i) – fellow subsidiaries 2 4 Expenses relating to short-term leases (i) – fellow subsidiaries 4 7 Service income from (ii) – immediate holding company — 1 – fellow subsidiaries 261 134 – associates 43 59 – joint ventures 77 67 – related parties 1 — Service fees paid to (iii) – fellow subsidiaries 91 47 – associates 216 17 – joint ventures 23 18 – a related party 58 3