Annual Report 2023

193 ANNUAL REPORT 2023 39. 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 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”) Note 2023 2022 HK$’million HK$’million Rental income from (i) – fellow subsidiaries 58 71 – joint ventures 23 18 Interest expenses on lease liabilities (i) – fellow subsidiaries 3 4 Expenses relating to short-term leases (i) – fellow subsidiaries 7 16 Service income from (ii) – fellow subsidiaries 110 128 – associates 36 31 – joint ventures 86 81 – related parties 59 — Service fees paid to (iii) – fellow subsidiaries 112 76 – associates 107 144 – joint ventures 21 22 – related parties 36 42 Interest income from – a fellow subsidiary (iv) 19 14 – associates (v) 155 200 – a joint venture (v) 62 21 – related parties (vi) 17 21 Interest expenses and upfront fees paid to (vii) – immediate holding company 12 55 – fellow subsidiaries 21 11