[43] Related party disclosures

In addition to the subsidiaries included in the consolidated financial statements, the KION Group has direct or indirect business relationships with a number of non-consolidated subsidiaries, joint ventures and associates in the course of its ordinary business activities.

The related parties that are solely or jointly controlled by the KION Group or over which significant influence can be exercised are included in the list of shareholdings as at 31 December 2017 (see note [47]).

Another related party is Weichai Power Co. Ltd., Weifang, China, which indirectly holds a 43.3 per cent stake in KION GROUP AG. Since 2017, it has therefore had a majority at the Annual General Meeting and can exercise control over the KION Group. In the context of the capital increase in May 2017, Weichai Power (Luxembourg) Holding S.à r.l., Luxembourg (‘Weichai Power’), acquired 4,023,275 of the new shares in line with its stake in KION GROUP AG, which remained unchanged at 43.3 per cent. The distribution of a dividend of €0.80 per share to the shareholders of Weichai Power resulted in an outflow of funds from KION GROUP AG of €37.7 million.

The revenue that the KION Group generated in 2017 and 2016 from selling goods and services to related parties, and vice versa, is shown in > TABLES 120 – 121 along with the associated receivables and liabilities as at the reporting date. The receivables include a loan that the KION Group has granted to Linde Hydraulics GmbH & Co. KG, Aschaffenburg. The commitment included an amount of €9.3 million (31 December 2016: €5.3 million). This resulted in a loan receivable for the KION Group of €8.0 million as at 31 December 2017 (31 December 2016: €4.0 million); it has a variable interest rate. No valuation allowances for trade receivables had been recognised as at the reporting date, a situation that was unchanged on the end of 2016.

The members of the Executive Board and Supervisory Board of KION GROUP AG are also related parties. Details of the remuneration of the Executive Board and Supervisory Board can be found in note [45].

In its consolidated financial statements, which are published on the website of the Hong Kong Stock Exchange, Weichai Power Co. Ltd. states that its highest-level parent company is Shandong Heavy Industry Group Co., Ltd., Jinan, People’s Republic of China, which itself is owned by Shandong Province and thus the People’s Republic of China. The exemption for government-related entities were applied. There were no transactions that were significant, either individually or taken together, between the KION Group and companies with which the KION Group is closely associated solely because of its relationship with Shandong Heavy Industry Group Co., Ltd.