[45] Related party disclosures
In addition to its relationship with subsidiaries included in the consolidated financial statements, the KION Group has direct or indirect business relationships with a number of non-consolidated subsidiaries, associates and joint ventures, and other related parties 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 December 31, 2023 (see note [48]).
Weichai Power Co., Ltd., Weifang, People’s Republic of China, indirectly held a 46.5 percent stake in KION GROUP AG via Weichai Power (Luxembourg) Holding S.à r.l., Luxembourg (‘Weichai Power’, direct parent company) as at December 31, 2023 (December 31, 2022: 46.5 percent) and, in the assessment of the Executive Board of KION GROUP AG on the basis of IFRS as adopted by the EU, is the ultimate parent company. Without prejudice to this, Weichai Power Co., Ltd. states in its consolidated financial statements, which are published on the website of the Hong Kong Stock Exchange, that its ultimate parent company is Shandong Heavy Industry Group Co., Ltd., Jinan, People’s Republic of China. The latter is owned by the State-owned Assets Supervision and Administration Commission of Shandong People’s Government of the People’s Republic of China, Jinan, People’s Republic of China. There were no transactions that were significant, either individually or taken together, with the Shandong Heavy Industry Group Co., Ltd. or with its consolidated entities above the level of Weichai Power Co., Ltd.
The revenue that the KION Group generated in 2023 and 2022 from selling goods and services to related parties is shown in the table below along with the receivables that were outstanding at the reporting date.
|
Receivables |
Sales of goods and services |
||||
|---|---|---|---|---|---|---|
in € million |
Dec. 31, 2023 |
Dec. 31, 2022 |
2023 |
2022 |
||
Non-consolidated subsidiaries |
17.1 |
21.4 |
23.9 |
32.8 |
||
Associates (equity-accounted)1 |
48.8 |
37.0 |
198.1 |
145.3 |
||
Joint ventures (equity-accounted) |
11.5 |
19.4 |
64.9 |
75.2 |
||
Other related parties1 |
8.0 |
4.7 |
30.9 |
18.2 |
||
Total |
85.4 |
82.6 |
317.8 |
271.5 |
||
|
||||||
The figures for other related parties include transactions with Weichai Power and its affiliated companies; these comprise receivables of €5.8 million (December 31, 2022: €3.8 million) and sales of goods and services amounting to €20.3 million (2022: €11.1 million). The receivables from associates include a variable-rate loan that the KION Group has granted to Linde Hydraulics GmbH & Co. KG, Aschaffenburg. This involved a maximum commitment of €9.3 million (December 31, 2022: €9.3 million), from which the KION Group had a loan receivable with a nominal amount of €8.0 million as at December 31, 2023 (December 31, 2022: €8.0 million).
The KION Group has also made a commitment to the joint venture Schwerter Profile GmbH, Schwerte, to provide a shareholder loan with a maximum amount of €10.0 million, from which the KION Group had a loan receivable with a nominal amount of €6.8 million as at December 31, 2023 (December 31, 2022: €9.3 million).
The goods and services obtained from related parties in 2023 and 2022 are shown in the table below along with the liabilities that were outstanding at the reporting date.
|
Liabilities |
Purchases of goods and services |
||||
|---|---|---|---|---|---|---|
in € million |
Dec. 31, 2023 |
Dec. 31, 2022 |
2023 |
2022 |
||
Non-consolidated subsidiaries |
15.1 |
10.6 |
40.5 |
30.2 |
||
Associates (equity-accounted)1 |
7.5 |
8.1 |
123.3 |
104.4 |
||
Joint ventures (equity-accounted) |
99.8 |
105.0 |
123.6 |
92.3 |
||
Other related parties1 |
16.1 |
17.3 |
0.5 |
5.7 |
||
Total |
138.5 |
141.0 |
288.0 |
232.5 |
||
|
||||||
The figures for other related parties include transactions with Weichai Power and its affiliated companies; these comprise liabilities of €13.6 million (December 31, 2022: €16.0 million) and purchases of goods and services amounting to €0.0 million (2022: €5.3 million).
The distribution of a dividend of €0.19 per share for the 2022 financial year (dividend for financial year 2021: €1.50 per share) to Weichai Power resulted in a pro rata outflow of funds from KION GROUP AG of €11.6 million in 2023 (2022: outflow of €89.0 million).
The members of the Executive Board and Supervisory Board of KION GROUP AG, and their family members, are also related parties. Further related parties are the members of the Boards of Directors of Weichai Power Co., Ltd., Weifang, People’s Republic of China (ultimate parent company of KION GROUP AG), Weichai Power (Hong Kong) International Development Co., Ltd., People’s Republic of China (intermediate holding company), and Weichai Power Holding S.à r.l., Luxembourg (direct parent company), and their family members. Details of the remuneration of the Executive Board and Supervisory Board of KION GROUP AG can be found in note [47].