Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
ifrs Statement [line items] | |
Entity Registrant Name | GUANGSHEN RAILWAY CO LTD |
Entity Central Index Key | 1,012,139 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | GSH |
H shares [member] | |
ifrs Statement [line items] | |
Entity Common Stock, Shares Outstanding | 1,431,300,000 |
A shares [member] | |
ifrs Statement [line items] | |
Entity Common Stock, Shares Outstanding | 5,652,237,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | ||
Non-current assets | ||||||
Fixed assets-net | ¥ 23,617,138 | $ 3,629,888 | ¥ 24,278,032 | |||
Construction-in-progress | 1,430,671 | 219,890 | 790,308 | |||
Prepayments for fixed assets and construction-in-progress | 54,368 | 8,356 | 60,095 | |||
Leasehold land payments | 1,980,278 | 304,363 | 1,624,859 | |||
Goodwill | 281,255 | 43,228 | 281,255 | |||
Investments in associates | 174,548 | 26,828 | 167,604 | |||
Deferred tax assets | 37,005 | 5,688 | 79,929 | |||
Long-term prepaid expenses | 33,401 | 5,134 | 7,824 | |||
Available-for-sale investments | 296,414 | 45,558 | 53,826 | |||
Long-term receivable | 31,274 | 4,806 | 31,406 | |||
Total non-current assets | 27,936,352 | 4,293,739 | 27,375,138 | |||
Current assets | ||||||
Materials and supplies | 330,727 | 50,832 | 332,607 | |||
Trade receivables | 4,142,210 | 636,646 | 3,364,366 | |||
Prepayments and other receivables | 314,251 | 48,299 | 330,491 | |||
Short-term deposits | 108,000 | [2] | 16,599 | 108,000 | [2] | |
Cash and cash equivalents | 1,160,515 | 178,368 | 1,359,656 | |||
Assets classified as held for sale | 2,183 | 336 | 0 | |||
Total current assets | 6,057,886 | 931,080 | 5,495,120 | |||
Total assets | 33,994,238 | 5,224,819 | 32,870,258 | |||
Capital and reserves attributable to the Company's equity holders | ||||||
Share capital | 7,083,537 | 1,088,720 | 7,083,537 | |||
Share premium | 11,562,738 | 1,777,160 | 11,562,738 | |||
Other reserves | 3,109,516 | 477,924 | 2,825,593 | |||
Retained earnings | 6,928,886 | 1,064,950 | 6,582,190 | |||
Capital and reserves attributable to the Company's equity holders | 28,684,677 | 4,408,754 | 28,054,058 | |||
Non-controlling interests | (27,596) | (4,241) | (24,003) | |||
Total equity | 28,657,081 | 4,404,513 | 28,030,055 | |||
Non-current liabilities | ||||||
Deferred tax liabilities | 66,391 | 10,204 | 68,883 | |||
Deferred income | 105,791 | 16,260 | 106,810 | |||
Total non-current liabilities | 172,182 | 26,464 | 175,693 | |||
Current liabilities | ||||||
Trade payables | 1,325,077 | 203,661 | 1,143,523 | |||
Payables for fixed assets and construction-in-progress | 2,214,547 | 340,370 | 1,765,185 | |||
Dividends payable | 12,893 | 1,982 | 15,542 | |||
Income tax payable | 149,227 | 22,936 | 121,513 | |||
Accruals and other payables | 1,463,231 | 224,893 | 1,618,747 | |||
Total current liabilities | 5,164,975 | 793,842 | 4,664,510 | |||
Total liabilities | 5,337,157 | 820,306 | 4,840,203 | |||
Total equity and liabilities | ¥ 33,994,238 | $ 5,224,819 | ¥ 32,870,258 | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. | |||||
[2] | Note: The original effective interest rate of term deposits was 1.56% per annum (2016: 1.65% per annum). |
CONSOLIDATED COMPREHENSIVE INCO
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016CNY (¥)¥ / shares | Dec. 31, 2015CNY (¥)¥ / shares | ||
Revenue | |||||
Total revenue | ¥ 18,331,422,000 | $ 2,817,488 | [1] | ¥ 17,280,504,000 | ¥ 15,725,309,000 |
Operating expenses: | |||||
Employee benefits | (6,842,220,000) | (6,219,347,000) | (5,210,097,000) | ||
Land use right leases | (57,358,000) | (55,090,000) | (55,090,000) | ||
Materials and supplies | (1,627,992,000) | (1,697,166,000) | (1,565,648,000) | ||
Depreciation of fixed assets | (1,662,460,000) | (1,518,970,000) | (1,411,742,000) | ||
Amortisation of leasehold land payments | (45,680,000) | (38,670,000) | (28,413,000) | ||
Total operating expenses | (16,932,587,000) | (2,602,491) | [1] | (15,637,999,000) | (14,156,735,000) |
Other losses - net | (48,477,000) | (7,451) | [1] | (108,270,000) | (114,627,000) |
Operating profit | 1,350,358,000 | 207,546 | [1] | 1,534,235,000 | 1,453,947,000 |
Finance (costs)/income-net | (10,170,000) | (1,563) | [1] | 2,551,000 | (4,608,000) |
Share of results of associates, net of tax | 6,944,000 | 1,067 | [1] | 7,223,000 | 2,499,000 |
Profit before income tax | 1,347,132,000 | 207,050 | [1] | 1,544,009,000 | 1,451,838,000 |
Income tax expense | (335,364,000) | (51,544) | [1] | (390,309,000) | (388,530,000) |
Profit for the year | 1,011,768,000 | 155,506 | [1] | 1,153,700,000 | 1,063,308,000 |
Items that may be reclassified to profit or loss | |||||
Changes in the fair values of available-for-sale financial assets | 242,588,000 | 37,285 | [1] | ||
Deferred tax liabilities for the changes in the fair values of available-for-sale financial assets | (60,647,000) | (9,321) | [1] | ||
Total comprehensive income for the year, net of tax | 1,193,709,000 | 183,470 | [1] | 1,153,700,000 | 1,063,308,000 |
Profit attributable to: | |||||
Equity holders of the Company | 1,015,361,000 | 156,058 | [1] | 1,158,253,000 | 1,070,822,000 |
Non-controlling interests | (3,593,000) | (552) | [1] | (4,553,000) | (7,514,000) |
Profit for the year | 1,011,768,000 | 155,506 | [1] | 1,153,700,000 | 1,063,308,000 |
Total comprehensive income attributable to: | |||||
Equity holders of the Company | 1,197,302,000 | 184,022 | [1] | 1,158,253,000 | 1,070,822,000 |
Non-controlling interests | (3,593,000) | (552) | [1] | (4,553,000) | (7,514,000) |
Total comprehensive income for the year, net of tax | ¥ 1,193,709,000 | $ 183,470 | [1] | ¥ 1,153,700,000 | ¥ 1,063,308,000 |
Earnings per share for profit attributable to the equity holders of the Company during the year | |||||
Basic and diluted | (per share) | ¥ 0.14 | $ 0.02 | [1] | ¥ 0.16 | ¥ 0.15 |
Earnings per equivalent ADS | |||||
Basic and diluted | (per share) | ¥ 7.17 | $ 1.10 | [1] | ¥ 8.18 | ¥ 7.56 |
Railroad Businesses [member] | |||||
Revenue | |||||
Passenger | ¥ 7,757,077,000 | $ 1,192,241 | [1] | ¥ 7,358,851,000 | ¥ 6,997,562,000 |
Freight | 1,893,594,000 | 291,040 | [1] | 1,718,260,000 | 1,761,449,000 |
Railway network usage and other transportation related services | 7,644,230,000 | 1,174,897 | [1] | 7,093,198,000 | 5,874,727,000 |
Total revenue | 17,294,901,000 | 2,658,178 | [1] | 16,170,309,000 | 14,633,738,000 |
Operating expenses: | |||||
Business tax and surcharge | (21,658,000) | (3,329) | [1] | (38,723,000) | (46,785,000) |
Employee benefits | (6,300,223,000) | (968,327) | [1] | (5,654,869,000) | (4,767,083,000) |
Equipment leases and services | (4,372,330,000) | (672,015) | [1] | (4,193,555,000) | (3,908,545,000) |
Land use right leases | (57,358,000) | (8,816) | [1] | (55,090,000) | (55,090,000) |
Materials and supplies | (1,314,002,000) | (201,958) | (1,336,614,000) | (1,224,262,000) | |
Repair and facilities maintenance costs, excluding materials and supplies | (879,597,000) | (135,192) | [1] | (612,484,000) | (716,193,000) |
Depreciation of fixed assets | (1,632,926,000) | (250,976) | [1] | (1,488,324,000) | (1,387,534,000) |
Cargo logistics and outsourcing service charges | (246,563,000) | (37,896) | [1] | (206,195,000) | (158,947,000) |
Amortisation of leasehold land payments | (34,348,000) | (5,279) | [1] | (27,338,000) | (17,949,000) |
Social services expenses | 0 | 0 | [1] | (11,297,000) | (16,080,000) |
Utility and office expenses | (60,360,000) | (9,277) | [1] | (55,718,000) | (63,602,000) |
Others | (930,691,000) | (143,044) | [1] | (881,586,000) | (788,335,000) |
Total operating expenses | (15,850,056,000) | (2,436,109) | [1] | (14,561,793,000) | (13,150,405,000) |
Other businesses [member] | |||||
Revenue | |||||
Total revenue | 1,036,521,000 | 159,310 | [1] | 1,110,195,000 | 1,091,571,000 |
Operating expenses: | |||||
Employee benefits | (541,997,000) | (83,303) | [1] | (564,478,000) | (443,014,000) |
Materials and supplies | (313,990,000) | (48,259) | (360,552,000) | (341,386,000) | |
Depreciation of fixed assets | (29,534,000) | (4,539) | [1] | (30,646,000) | (24,208,000) |
Amortisation of leasehold land payments | (11,332,000) | (1,742) | [1] | (11,332,000) | (10,464,000) |
Utility and office expenses | (34,488,000) | (5,301) | [1] | (23,051,000) | (30,080,000) |
Others | (151,190,000) | (23,238) | [1] | (86,147,000) | (157,178,000) |
Total operating expenses | ¥ (1,082,531,000) | $ (166,382) | [1] | ¥ (1,076,206,000) | ¥ (1,006,330,000) |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENTS ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Cash flows from operating activities | |||||
Cash generated from operations | ¥ 2,962,704 | $ 455,359 | ¥ 2,212,863 | ¥ 2,520,379 | |
Income tax paid | (327,865) | (50,392) | (571,625) | (260,688) | |
Net cash generated from operating activities | 2,634,839 | 404,967 | 1,641,238 | 2,259,691 | |
Cash flows from investing activities | |||||
Payments for acquisition of fixed assets and construction-in-progress; and prepayments for fixed assets, net of related payables | (2,273,426) | (349,419) | (1,973,897) | (1,292,273) | |
Proceeds from disposal of fixed assets | 527 | 81 | 17,950 | 7,821 | |
Government grants received | 0 | 0 | 6,082 | 8,160 | |
Interest received | 1,779 | 273 | 1,949 | 2,895 | |
Payment for investment in associates | (19,110) | ||||
Increase in short-term deposits with maturities more than three months, net | 0 | 0 | (2,000) | (2,000) | |
Dividends received | 6,473 | 995 | 14,214 | 5,884 | |
Payment for business combination, net of cash acquired | (60,612) | ||||
Net cash used in investing activities | (2,264,647) | (348,070) | (1,935,702) | (1,349,235) | |
Cash flows from financing activities | |||||
Dividends paid to non-controlling interests' shareholders | (533) | ||||
Dividends paid to the Company's shareholders | (569,333) | (87,504) | (566,683) | (354,177) | |
Net cash used in financing activities | (569,333) | (87,504) | (566,683) | (354,710) | |
Net increase/(decrease) in cash and cash equivalents | (199,141) | (30,607) | (861,147) | 555,746 | |
Cash and cash equivalents, at beginning of year | 1,359,656 | 208,975 | 2,220,803 | 1,665,057 | |
Cash and cash equivalents, at end of year | ¥ 1,160,515 | $ 178,368 | ¥ 1,359,656 | ¥ 2,220,803 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ¥ in Thousands, $ in Thousands | Share capital [member]CNY (¥) | Share capital [member]USD ($) | [1] | Share premium [member]CNY (¥) | Share premium [member]USD ($) | [1] | Statutory surplus reserve [member]CNY (¥) | Statutory surplus reserve [member]USD ($) | [1] | Discretionary surplus reserve [member]CNY (¥) | Discretionary surplus reserve [member]USD ($) | [1] | Other reserves [member]CNY (¥) | Other reserves [member]USD ($) | [1] | Retained earnings [member]CNY (¥) | Retained earnings [member]USD ($) | [1] | Total [member]CNY (¥) | Total [member]USD ($) | [1] | Non-controlling interests [member]CNY (¥) | Non-controlling interests [member]USD ($) | [1] | CNY (¥) | USD ($) | [1] |
Balance at beginning of year at Dec. 31, 2014 | ¥ 7,083,537 | ¥ 11,562,738 | ¥ 2,292,724 | ¥ 304,059 | ¥ 5,502,785 | ¥ 26,745,843 | ¥ 40,617 | ¥ 26,786,460 | |||||||||||||||||||
Total comprehensive income | 1,070,822 | 1,070,822 | (7,514) | 1,063,308 | |||||||||||||||||||||||
Profit for the year | 1,070,822 | 1,070,822 | (7,514) | 1,063,308 | |||||||||||||||||||||||
Appropriation | ¥ 192,860 | (192,860) | |||||||||||||||||||||||||
Utilisation | (192,860) | 192,860 | |||||||||||||||||||||||||
Business combination | (49,902) | (49,902) | |||||||||||||||||||||||||
Appropriations from retained earnings (Note 22) | 111,760 | (111,760) | |||||||||||||||||||||||||
Transaction with owners: | (354,177) | (354,177) | (1,427) | (355,604) | |||||||||||||||||||||||
Balance at end of year at Dec. 31, 2015 | 7,083,537 | 11,562,738 | 2,404,484 | 304,059 | 0 | 6,107,670 | 27,462,488 | (18,226) | 27,444,262 | ||||||||||||||||||
Total comprehensive income | 1,158,253 | 1,158,253 | (4,553) | 1,153,700 | |||||||||||||||||||||||
Profit for the year | 1,158,253 | 1,158,253 | (4,553) | 1,153,700 | |||||||||||||||||||||||
Appropriation | 204,792 | (204,792) | |||||||||||||||||||||||||
Utilisation | (204,792) | 204,792 | |||||||||||||||||||||||||
Appropriations from retained earnings (Note 22) | 117,050 | (117,050) | |||||||||||||||||||||||||
Transaction with owners: | (566,683) | (566,683) | (1,224) | (567,907) | |||||||||||||||||||||||
Dividends relating to the year (Note 33) | (566,683) | (566,683) | (1,224) | (567,907) | |||||||||||||||||||||||
Balance at end of year at Dec. 31, 2016 | 7,083,537 | 11,562,738 | 2,521,534 | 304,059 | 6,582,190 | 28,054,058 | (24,003) | 28,030,055 | |||||||||||||||||||
Total comprehensive income | 181,941 | 1,015,361 | 1,197,302 | (3,593) | 1,193,709 | $ 183,470 | |||||||||||||||||||||
Profit for the year | 1,015,361 | 1,015,361 | (3,593) | 1,011,768 | 155,506 | ||||||||||||||||||||||
Other comprehensive income (Note 22) | 181,941 | 181,941 | 181,941 | ||||||||||||||||||||||||
Special reserve - Safety Production Fund (Note 22) | 0 | ||||||||||||||||||||||||||
Appropriation | 227,250 | (227,250) | |||||||||||||||||||||||||
Utilisation | (227,250) | 227,250 | |||||||||||||||||||||||||
Appropriations from retained earnings (Note 22) | 101,982 | (101,982) | |||||||||||||||||||||||||
Transaction with owners: | (566,683) | (566,683) | (566,683) | ||||||||||||||||||||||||
Dividends relating to the year (Note 33) | (566,683) | (566,683) | (566,683) | ||||||||||||||||||||||||
Balance at end of year at Dec. 31, 2017 | ¥ 7,083,537 | $ 1,088,720 | ¥ 11,562,738 | $ 1,777,160 | ¥ 2,623,516 | $ 403,227 | ¥ 304,059 | $ 46,733 | ¥ 181,941 | $ 27,964 | ¥ 6,928,886 | $ 1,064,950 | ¥ 28,684,677 | $ 4,408,754 | ¥ (27,596) | $ (4,241) | ¥ 28,657,081 | $ 4,404,513 | |||||||||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
GENERAL INFORMATION [abstract] | |
Disclosure of general information about company | 1 1 GENERAL INFORMATION Guangshen Railway Company Limited (the “Company”) was established as a joint stock limited company in the People’s Republic of China (the “PRC”) on 6 March 1996. On the same date, the Company assumed the business operations of certain railroad and other related businesses (collectively the “Businesses”) that had been undertaken previously by its predecessor, Guangshen Railway Company (the “Predecessor”), certain subsidiaries of the Predecessor ; and b y Guangzhou Railway (Group) Company (the “Guangzhou Railway Group”) and certain of its subsidiaries prior to the formation of the Company. The Predecessor was controlled by and was under the administration of the Guangzhou Railway Group. Pursuant to a restructuring agreement entered into between the Guangzhou Railway Group, the Predecessor and the Company in 1996, the Company issued to the Guangzhou Railway Group 100% of its equity interest in the form of 2,904,250,000 ordinary shares (the "State-owned Domestic Shares") for the exchange of assets and liabilities associated with the operations of the Businesses (the "Restructuring"). After the Restructuring, the Predecessor changed its name to Guangzhou Railway (Group) Guangshen Railway Enterprise Development Company (the "GEDC"). In May 1996, the Company issued 1,431,300,000 shares, representing 217,812,000 H Shares ("H Shares") and 24,269,760 American Depositary Shares ("ADSs", one ADS represents 50 H Shares) in a global public offering for cash of approximately RMB4,214,000,000 in order to finance capital expenditure and working capital requirements of the Company and its subsidiaries (collectively defined as the "Group"). In December 2006, the Company issued 2,747,987,000 A Shares on the Shanghai Stock Exchange through an initial public offering of shares in order to finance the acquisition of the business and related assets and liabilities associated with the railway transportation business ("Yangcheng Railway Business") of Guangzhou Railway Group Yangcheng Railway Enterprise Development Company ("Yangcheng Railway "), a wholly owned subsidiary of Guangzhou Railway Group which operates a railway line between the cities of Guangzhou and Pingshi in the Southern region of the PRC. Before March 2013, the Ministry of Railway of the PRC ("MOR") was the controlling entity of the Company’s single largest shareholder (i.e. Guangzhou Railway Group). In addition, it was the government authority which governed and monitored the railway business centrally within the PRC. 1 GENERAL INFORMATION (CONTINUED) On 14 March 2013, pursuant to the approved plan of State Council Institutional Reform and Transformation of Government Functions and Approval On Setting Up China Railway Company by the State Council , the previous controlling entity of Guangzhou Railway Group, MOR, was dissolved. The administrative functions of MOR were transferred to the Ministry of Transport and a newly established authority called the National Railway Administration; while the business functions were transferred to the China Railway Corporation ("CRC"). Accordingly, the equity interests of Guangzhou Railway Group, which was wholly controlled by MOR previously, were also transferred to the CRC (“Reform”). The Reform was completed on 1 January 2017 and CRC has become the controlling entity of the Company’s principal shareholder since that date, Guangzhou Railway Group,CRC, together with subsidiaries which were wholly controlled by MOR previously (hereinafter collectively as “CRC Group”) became related parties of the Group. The principal activities of the Group are the provision of passenger and freight transportation on railroads. The Group also operates certain railroad and other businesses, which principally include services offered in railway stations; and sales of food, beverages and merchandises on board the trains and in the railway stations. The registered address of the Company is No.1052 Heping Road, Luohu District, Shenzhen, Guangdong Province, the People’s Republic of China. The financial statements were authorised for issue by the board of directors of the Company on 25 April 2018. The English names of all companies listed in the financial statements are direct translations of their registered names in Chinese if no registered names in English are available. |
PRINCIPAL ACCOUNTING POLICIES
PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
PRINCIPAL ACCOUNTING POLICIES [abstract] | |
Disclosure of principal accounting policies | 1 2 PRINCIPAL ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 2.1 Basis of preparation The consolidated financial statements have been prepared in accordance with all applicable International Financial Reporting Standards ("IFRS") as issued by International Accounting Standards Board ("IASB"). The consolidated financial statements have been prepared under the historical cost convention except for certain available-for-sale investments. 2 principal accounting policies (CONTINUED) 2.1 Basis of preparation (continued) The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4. 2.1.1 Changes in accounting policy and disclosures (a) New and amended standards adopted by the Group The following amendments to standards have been adopted by the Group for the first time for the financial year beginning on 1 January 2017: · Income taxes- Amendments to IAS 12; · Statement of cash flows- Amendments to IAS 7; and · Disclosure of interest in other entities- Amendment to IFRS 12 The directors of the Company consider that the adoption of these amendments did not have any impact on the amounts recognised in prior periods. Most of the amendments will also not affect the current or future periods. (b) The following new standards, amendments and interpretations have been issued as at 31 December 2017 but are not effective for the financial statements for the year ended 31 December 2017: Title of standard Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions Nature of change The amendments relate to the following areas: (1) the accounting for the effects of vesting conditions on cash - settled share - based payment transactions; (2) the classification of share-based payment transactions with net settlement features for withholding tax obligations; (3) the accounting for a modification to the terms and conditions of a share - based payment that changes the transaction from cash - settled to equity - settled. Impact Management has assessed the effects of applying the new standard on the Group’s financial statements. Given there were no share based payment transactions undertaken by the Company and the Group, no significant impact has been identified. Date of adoption by Group These amendments will be effective for annual periods beginning on or after 1 January 2018. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (continued) 2.1.1 Changes in accounting policy and disclosures (continued) (b) The following new standards, amendments and interpretations have been issued as at 31 December 2017 but are not effective for the financial statements for the year ended 31 December 2017 (continued): Title of standard IFRS 9 Financial Instruments Nature of change IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. Impact The Group has reviewed its financial assets and liabilities and is expecting the following impact from the adoption of the new standard on 1 January 2018: (i) The majority of the Group’s equity instruments that were currently classified as available-for-sale investments as at 31 December 2017 will satisfy the conditions for classification as at fair value through other comprehensive income (FVOCI) and hence there will be no significant change to the accounting for these assets. The other financial assets held by the Group which include loans and receivables, will meet the conditions for classification as financial instruments recorded at amortised cost under IFRS9. Accordingly, the Group does not expect the new provision of the new standard would affect the classification and measurement of these financial assets. However, gains or losses realised on the sale of financial assets at FVOCI will no longer be transferred to profit or loss upon sales of the instruments, but instead be reclassified from the FVOCI reserve to retained earnings. (ii) There will be no impact on the Group’s accounting for financial liabilities, as the new requirements only affect the accounting of financial liabilities that are designated at fair value through profit or loss and the Group does not have any such liabilities. (iii) The new impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses as is the case under IAS 39 Financial Instruments: Recognition and Measurement. It applies to financial assets classified at amortised cost, debt instruments measured at FVOCI, contract assets under IFRS 15 Revenue from Contracts with Customers, lease receivables, loan commitments and certain financial guarantee contracts. Based on the assessments undertaken to date, the Group expects an increase in the provision for impairment by approximately 1% of debt balances. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (continued) 2.1.1 Changes in accounting policy and disclosures (continued) (b) The following new standards, amendments and interpretations have been issued as at 31 December 2017 but are not effective for IFRS financial statements for the year ended 31 December 2017 (continued): Title of standard IFRS 9 Financial Instruments Impact The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the Group’s disclosures about its financial instruments particularly in the year of adoption of the new standard. Date of adoption by Group Must be applied for financial years commencing on or after 1 January 2018. The Group will apply the new rules using modified retrospective method from 1 January 2018, with the practical expedients permitted under the standard. Comparatives for 2017 will not be restated. Title of standard IFRS 15 Revenue from Contracts with Customers Nature of change The IASB has issued a new standard for the recognition of revenue. This will replace IAS 18 which covers contracts for goods and services and IAS 11 which covers construction contracts. The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer. The standard permits either a full retrospective or a modified retrospective approach for the adoption. Impact Management has assessed the effects of applying the new standard on the group’s financial statements. Given the nature and mode of provision of services, revenue transactions are expected not to trigger significant differences in the accounting treatments under the requirements of the new standards, no significant impact has been identified. Date of adoption by group Mandatory for financial years commencing on or after 1 January 2018. The group intends to adopt the standard using the modified retrospective approach which means that the cumulative impact of the adoption will be recognised in retained earnings as of 1 January 2018 and that comparatives will not be restated. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (continued) 2.1.1 Changes in accounting policy and disclosures (continued) (b) The following new standards, amendments and interpretations have been issued as at 31 December 2017 but are not effective for IFRS financial statements for the year ended 31 December 2017 (continued): Title of standard IFRS 16 Leases Nature of change IFRS16 was issued in January 2016. It will result in almost all leases being recognised on the balance sheet, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases. The accounting for lessors will not significantly change. Impact The standard will affect primarily the accounting for the Group’s operating leases. Management is currently assessing the impact of applying the new standard on the Group’s financial statements. Date of adoption by group Mandatory for financial years commencing on or after 1 January 2019. At this stage, the Group does not intend to adopt the standard before its effective date. The Group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. Title of standard Amendments to IFRS 10 and IAS 28 Sale or contribution of assets between an investor and its associate or joint venture Nature of change The amendments address an inconsistency between IFRS 10 and IAS 28 in the sale and contribution of assets between an investor and its associate or joint venture. A full gain or loss is recognised when a transaction involves a business. A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if those assets are within a subsidiary. Impact Management has assessed the effects of applying the new standard on the Group’s financial statements and no significant impact has been identified. Date of adoption by Group The effective date of these amendments is to be determined pending the outcome of the IASB’s research project on equity accounting. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.2 Subsidiaries 2.2.1 Consolidation A subsidiary is an entity (including a structured entity) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. (a) Business combinations The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis. Non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation are measured at either fair value or the present ownership interests’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. All other components of non-controlling interests are measured at their acquisition date fair value, unless another measurement basis is required by IFRS. Acquisition-related costs are expensed as incurred. If the business combination is achieved in stages, the acquirer shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognise the resulting gain or loss, if any, in profit or loss. Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with IAS 39 in profit or loss. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for within equity. The excess of the consideration transferred and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in profit or loss (Note 2.9). Intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.2 Subsidiaries (continued) 2.2.1 Consolidation (continued) (b) Changes in ownership interests in subsidiaries without change of control Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. (c) Disposal of subsidiaries When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities, which means that amounts previously recognised in other comprehensive income are reclassified to profit or loss. 2.3 Associates An associate is an entity over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition. The Group's investments in associates include goodwill identified on acquisition. Upon the acquisition of the ownership interest in an associate, any difference between the cost of the associate and the Group’s share of the net fair value of the associate’s identifiable assets and liabilities is accounted for as goodwill. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.3 Associates (continued) If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate. The Group’s share of post-acquisition profit or loss is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount within 'share of result of associates' ,included in the consolidated comprehensive income statement. Profits or losses and other comprehensive income resulting from upstream and downstream transactions between the Group and its associates are recognised in the Group’s financial statements only to the extent of unrelated investor’s interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group. In the Company’s balance sheet, investments in associates are accounted for at cost less provision for impairment losses. Cost also includes direct attributable costs of investment. The results of associates are accounted for by the Company on the basis of dividend received and receivable. 2.4 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the senior executives of the Company that make strategic decisions. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.5 Foreign currency transaction (a) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in Renminbi ("RMB"), which is the Company’s functional and the Group’s presentation currency. (b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign exchange gains and losses are presented in the consolidated comprehensive income statement within " Finance (costs)/income-net ". 2.6 Fixed assets Fixed assets are stated at historical cost less depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items (for the case of fixed assets acquired by the Company from Predecessor during the Restructuring, the revaluated amount in the Restructuring was deemed costs). Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Depreciation is calculated using the straight-line method to allocate the cost amount, after taking into account the estimated residual value of not more than 4% of cost, of each asset over its estimated useful life. The estimated useful lives are as follows: 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.6 Fixed assets (continued) Buildings (a) 20 to 40 years Tracks, bridges and service roads (a) 16 to 100 years Locomotives and rolling stock 20 years Communications and signalling systems 8 to 20 years Other machinery and equipment 4 to 25 years (a) The estimated useful lives of some buildings, tracks, bridges and service roads exceed the initial lease periods of the land use rights from operation lease (details contained in Note 36(b)); and the initial period of certain land use right acquired (Note 2.8), on which these assets are located. The Group will renew the term of land use right upon its expiry in strict compliance with requirements of relevant laws and regulations. There is no substantive impediment for the renewal except for public interests. In addition, based on the provision of the land use right operating lease agreement entered into with Guangzhou Railway Group (Note 36(b)), the Company can renew the lease at its own discretion upon expiry of the operating lease term. Based on the above consideration, the directors of the company consider the current estimated useful lives of those assets to be reasonable. The assets residual values and estimated useful lives are reviewed, and adjusted if appropriate, at the end of each year. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.10). Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within "other losses - net", included in the consolidated comprehensive income statement. 2.7 Construction-in-progress Construction-in-progress represents buildings, tracks, bridges and service roads under construction, and mainly includes the construction related costs for the associated facilities of the existing railway lines of the Group. Construction-in-progress is stated at cost, which includes all expenditures and other direct costs, site restoration costs, prepayments attributable to the construction and interest charges arising from borrowings used to finance the construction during the construction period, less impairment loss. Construction-in-progress is not depreciated until such assets are completed and ready for their intended use. From time to time, certain railway assets of the Group require major modifications and improvements. The carrying amounts are transferred from fixed assets to construction-in-progress. The carrying amounts, including costs of modifications, are transferred back to fixed assets upon completion of the improvement projects. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.8 Leasehold land payments The Group acquired the right to use certain pieces of land for certain of its rail lines, railway stations and other businesses. The consideration paid for such land represents pre-paid lease payments, which are amortised over the lease terms of 36.5 to 50 years using the straight-line method. 2.9 Goodwill Goodwill represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of identifiable net assets acquired. Goodwill arising from acquisitions of subsidiaries’ business is disclosed separately on the consolidated balance sheet. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units ("CGUs"), or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level. Goodwill impairment reviews are undertaken at least annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 2.10 Impairment of non-financial assets other than goodwill Assets that subjected to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.11 Non-current assets held for sale Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, financial assets and investment property that are carried at fair value, which are specifically exempt from this requirement. An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of derecognition. Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. 2.12 Financial assets 2.12.1 Classification The Group classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, available-for-sale financial assets and held to maturity investment. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. In current year, the Group held loan and receivables and available-for-sale financial assets. (a) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets except for the amounts that are settled or expected to be settled more than 12 months after the end of the reporting period. These are classified as non-current assets. The Group’s loans and receivables comprise "long-term receivables", "trade and other receivables", "short-term deposits" and "cash and cash equivalents" in the consolidated balance sheet. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.12 Financial assets (continued ) 2.12.1 Classification (continued) (b) Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless the investment matures or management intends to dispose of it within 12 months of the end of the reporting period. 2.12.2 Recognition and measurement Regular way purchases and sales of financial assets are recognised on the trade-date - the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Available-for-sale financial assets are subsequently carried at fair value, except for those investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, which shall be measured at cost. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Loans and receivables are subsequently carried at amortised cost using the effective interest method. Changes in the fair value of monetary and non-monetary securities classified as available-for-sale are recognised in other comprehensive income. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognised in equity are included in profit or loss as "other gain/losses - net". Dividends on available-for-sale equity instruments are recognised in profit or loss when the Group’s right to receive payments is established. The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group established fair value by using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models, making maximum use of market inputs and relying as little as possible on entity-specific inputs. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.13 Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty. 2.14 Impairment of financial assets (a) Assets carried at amortised cost The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a " loss event " ) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. The criteria that the Group uses to determine that there is objective evidence of an impairment loss: include: · Significant financial difficulty of the issuer or obligor; · A breach of contract, such as a default or delinquency in interest or principal payments; · The Group, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider; · It becomes probable that the borrower will enter bankruptcy or other financial reorganisation; · The disappearance of an active market for that financial asset because of financial difficulties; or · Observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the portfolio, including: (i) adverse changes in the payment status of borrowers in the portfolio; (ii) national or local economic conditions that correlate with defaults on the assets in the portfolio. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.14 Impairment of financial assets (continued) (a) Assets carried at amortised cost (continued) For loans and |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL RISK MANAGEMENT [abstract] | |
Disclosure of financial risk management | 3 3 FINANCIAL RISK MANAGEMENT 3.1 Financial risk factor The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk and cash flow and fair value interest rate risk ), credit risk, and liquidity risk. The Group’s overall risk management strategy seeks to minimise the potential adverse effects on the financial performance of the Group. (a) Market risk (i) Foreign currency risk The Group mainly operates in the PRC with most of the transactions settled in RMB. RMB is also the functional and presentation currency of the Group. RMB is not freely convertible into other foreign currencies. The conversion of RMB denominated balances into foreign currencies is subject to the rates and regulations of foreign exchange control promulgated by the PRC government. Any foreign currency denominated monetary assets and liabilities other than in RMB would subject the Group to foreign exchange exposure. The Group’s objective of managing the foreign currency risk is to minimise potential adverse effects arising from foreign transaction movements. Depending on volatility of specific foreign currency being exposed, measures are taken by management to manage the foreign currency positions. The following table shows the Group’s foreign currency denominated monetary assets (in RMB thousands equivalent): Currency As at 31 December Monetary assets denomination 2016 2017 (RMB’000) (RMB’000) Cash and cash equivalents HKD 115,680 32,650 Cash and cash equivalents USD 96 146 Other receivables HKD 66 67 115,842 32,863 The Group may experience a loss as a result of any foreign currency exchange rate fluctuations in connection with monetary assets shown above. The Group has not used any means to hedge the exposure. 3 FINANCIAL RISK MANAGEMENT (CONTINUED) 3.1 Financial risk factor (continued) (a) Market risk (continued) (i) Foreign currency risk (continued) As at 31 December 2017, if RMB had weakened/strengthened by 5% against the HKD with all other variables held constant, profit after tax for the year would have been RMB1,232,000 (2016: RMB4,340,000) higher/lower, mainly as a result of foreign exchange gains/losses on translation of HKD-denominated cash in banks. The impact of exchange fluctuations of USD is not expected to be significant. (ii) Cash flow and fair value interest rate risk Other than deposits held in banks, the Group does not have significant interest-bearing assets or liabilities. The average interest rate of deposits held in banks in the PRC throughout the year was approximately 1.54% (2016 : 1.38% ) per annum . Any change in the interest rate promulgated by the People’s Bank of China from time to time is not considered to have a significant impact to the Group. As at 31 December 2017 and 2016, the Group had no interest bearing debts, which may expose the Group to any interest rate risk. (b) Credit risk Credit risk is managed on a group basis. Credit risk arises from bank balances, trade and other receivables (excluding prepayments) and long-term receivable. The credit quality of financial assets that are neither past due nor impaired can be analysed by the identity of counterparties as follows: As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Trade receivables Due from Guangzhou Railway Group and its subsidiaries 721,557 1,261,244 Due from CRC Group (excluding Guangzhou Railway Group and its subsidiaries) 1,314,352 1,106,311 Due from third parties 481,372 431,473 2,517,281 2,799,028 3 FINANCIAL RISK MANAGEMENT (CONTINUED) 3.1 Financial risk factor (continued) (b) Credit risk (continued) As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Other receivables excluding prepayments Due from Guangzhou Railway Group and its subsidiaries 2,619 9,460 Due from CRC Group (excluding Guangzhou Railway Group and its subsidiaries) 3,846 381 Due from third parties 220,035 194,245 226,500 204,086 Long-term receivable Due from a third party 31,406 31,274 For trade and other receivables, management performs ongoing credit evaluations of its customers/debtors’ financial condition and generally does not require collateral from the customers/debtors. After assessing the expected reali s ability and timing for collection of the outstanding balances, the Group maintains a provision for impairment of receivables and actual losses incurred have been within management’s expectation. As at December 31, 2016 As at December 31, 2017 RMB’000 RMB’000 Cash at bank and short-term deposits Placed in listed banks in the PRC 1,467,616 1,268,478 Cash and short term deposits are placed with reputable banks. There was no recent history of default of cash and cash equivalents and short-term deposits from such financial institutions. There were no other financial assets carrying a significant exposure to credit risk. None of the financial assets that are fully performing has been renegotiated in the current year. (c) Liquidity risk Prudent liquidity risk management includes maintaining sufficient cash and the ability to close out market positions. Management monitors rolling forecasts of the Group’s liquidity reserves (comprising cash and cash equivalents) on the basis of expected cash flows. 3 FINANCIAL RISK MANAGEMENT (CONTINUED) 3.1 Financial risk factor (continued) (c) Liquidity risk (continued) The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant. Less than Between 1 and 2 years Between 2 and 5 years RMB’000 RMB’000 RMB’000 At 31 December 2017 Trade and other payables excluding other tax payables, employee salary and benefits payables and advances 2,356,953 - - Payables for fixed assets and construction-in-progress 2,214,547 - - Dividends payable 12,893 - - At 31 December 2016 Trade and other payables excluding other tax payables, employee salary and benefits payables and advances 2,201,483 - - Payables for fixed assets and construction-in-progress 1,765,185 - - Dividends payable 15,542 - - 3.2 Capital risk management The Group’s objectives of managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. As at December 2017 and 2016, the directors considered that the Group’s capital risk is manageable as the Group is continuously able to generate sufficient working capital from its daily operation. 3 FINANCIAL RISK MANAGEMENT (CONTINUED) 3.3 Fair value estimation According to amendment to IFRS 7 for financial instruments that are measured in the balance sheet at fair value, it requires disclosure of fair value measurements by level of following fair value measurement hierarchy: · Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). · Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). · Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). As at 31 December 2017, the Group did not have any financial instruments that were measured at fair value except for certain available-for-sale financial assets (Note 15). As at 31 December 2016,the Group did not have any financial instrument that were measured at fair value. As at 31 December 2017 and 2016, the fair values of other financial instruments approximated their carrying values. (i) Fair value hierarchy Note Level 1 Level 2 Level 3 Total Available‑for‑sale financial assets 15 - - 280 ,088 280 ,088 |
CRITICAL ACCOUNTING ESTIMATES A
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS [abstract] | |
Disclosure of critical accounting estimates and judgements | 4 4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Impairment of receivables The Group makes provision for impairment of receivables based on an assessment of the recoverability of trade and other receivables with reference to the extent and duration that the amount will be recovered. Provisions are applied where events or changes in circumstances indicate that the balances may not be collectible. The identification of impairment requires the use of judgement and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying amount of trade and other receivables and the impairment charge in the period in which such estimate has been changed. 4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) Estimation of the fair value of certain available-for-sale financial assets The Group makes estimates of the fair value of the available-for-sale financial assets with consideration of the assessed enterprise value, which is regarded as the best estimate of the fair value. The assessment of fair value requires the use of judgement and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying amount of available-for-sale financial assets and changes in the fair value of available-for-sale financial assets recorded in other comprehensive income. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION [abstract] | |
Disclosure of operating segments | 5 5 SEGMENT INFORMATION The chief operating decision-maker s ha ve been identified as the senior executives of the Company. Senior executives of the Company review the Group’s internal reporting in order to assess performance and allocate resources. T he operating segments were determined based on these management reports. Senior executives evaluate the business from a perspective o f revenues and operating results generated from railroad and related business conducted by the Company ("the Railway Transportation Business"). Other segments mainly include on-board catering services, leasing, sales of materials, sale of goods and other businesses related to railway transportation provided by the subsidiaries of the Company. Senior executives of the Company assess the performance of the operating segments based on a measure of the profit before income tax. Other information provided, except as noted below, to senior executives of the Company is measured in a manner consistent with that in the consolidated financial statements. The segment results for 20 15, 201 6 and 2017 are as follows: The Railway Transportation Business All other segments Elimination Total 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Segment revenue - Railroad and Business 14,633,738 16,170,309 17,294,901 - - - - - - 14,633,738 16,170,309 17,294,901 - Other Businesses 672,455 663,418 705,423 458,944 487,097 395,661 (39,828) (40,320) (64,563) 1,091,571 1,110,195 1,036,521 Total revenue 15,306,193 16,833,727 18,000,324 458,944 487,097 395,661 (39,828) (40,320) (64,563) 15,725,309 17,280,504 18,331,422 Segment result 1,487,249 1,549,120 1,341,601 (28,549) 3,548 14,519 (6,862) (8,659) (8,988) 1,451,838 1,544,009 1,347,132 Finance costs/(income) - net 4,448 (2,728) 10,011 160 177 159 - - - 4,608 (2,551) 10,170 Share of results of associates, net of tax 2,499 7,223 6,944 - - - - - - 2,499 7,223 6,944 Depreciation of fixed assets 1,404,439 1,511,570 1,655,657 7,303 7,400 6,803 - - - 1,411,742 1,518,970 1,662,460 Amortisation of leasehold land payments 17,949 27,338 34,348 10,464 11,332 11,332 - - - 28,413 38,670 45,680 Amortisation of long-term prepaid expenses 13,842 6,729 3,256 337 239 (88) - - - 14,179 6,968 3,168 Impairment of fixed assets 80,393 - 11,185 - - - - - - 80,393 - 11,185 Impairment of construction-in progress 2,434 5,662 - - - - - - - 2,434 5,662 - Loss arising from business combination - - - 45,073 - - - - - 45,073 - - Provision for/(reversal of) impairment of materials and supplies 64,096 (5,209) 7,844 - - - - - - 64,096 (5,209) 7,844 5 SEGMENT INFORMATION (CONTINUED) A reconciliation of the segment results to profit of 201 5 , 201 6 and 201 7 is as follows: The Railway Transportation Business All other segments Elimination Total 201 5 201 6 201 7 201 5 201 6 201 7 201 5 201 6 201 7 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Segment result 1,487,249 1,549,120 1,341,601 (28,549) 3,548 14,519 (6,862) (8,659) (8,988) 1,451,838 1,544,009 1,347,132 Income tax expense (372,142) (385,840) (328,727) (16,388) (4,469) (6,637) - - - (388,530) (390,309) (335,364) Profit/( l oss) for the year 1,115,107 1,163,280 1,012,874 (44,937) (921) 7,882 (6,862) (8,659) (8,988) 1,063,308 1,153,700 1,011,768 The Group is domiciled in the PRC. All the Group's revenues were generated in the PRC, and the total assets are also located in the PRC . The Railway Transportation Business All other segments Elimination Total 201 6 201 7 201 6 201 7 201 6 201 7 201 6 201 7 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Total segment assets 32,483,625 33,621,101 586,519 535,840 (199,886) (162,703) 32,870,258 33,994,238 Total segment assets include: Investment in associates 167,604 174,548 - - - - 167,604 174,548 Additions to non-current assets (other than financial instruments and deferred tax assets) 2,817,557 2,415,143 3,279 1,083 - - 2,820,836 2,416,226 Total segment liabilities 4,398,759 4,908,103 588,128 545,500 (146,684) (116,446) 4,840,203 5,337,157 Revenues of approximately RMB3,595,959,000 (2015: RMB2,508,916,000and 2016: RMB3,407,998,000) were derived from Guangzhou Railway Group and its subsidiaries. These revenues are attributable to the Railway Transportation Business. Except that, no revenues derived from a single external customer have exceeded 10% of the total revenues. |
FIXED ASSETS-NET
FIXED ASSETS-NET | 12 Months Ended |
Dec. 31, 2017 | |
FIXED ASSETS-NET [abstract] | |
Disclosure of fixed assets-net | 5 6 FIXED ASSETS-NET Buildings Tracks, Locomotives Communications Other Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 At 1 January 2016 Cost 6,989,242 15,615,264 7,657,021 1,807,311 6,022,269 38,091,107 Accumulated depreciation (2,336,451) (2,980,811) (3,587,690) (1,341,344) (3,769,890) (14,016,186) Impairment - - - - (1,162) (1,162) Net book amount 4,652,791 12,634,453 4,069,331 465,967 2,251,217 24,073,759 Year ended 31 December 2016 Opening net book amount 4,652,791 12,634,453 4,069,331 465,967 2,251,217 24,073,759 Additions due to business combination - - 565,493 11,859 71,538 648,890 Other additions 6,294 - 446,754 42,182 154,100 649,330 Transfer in from construction-in-progress (Note 7) 485,087 88,128 36,584 77,808 330,106 1,017,713 Transfer out to construction-in-progress for improvements/modifications (Note 7) (4,743) - (189,888) (2,958) (8,797) (206,386) Transfer in from construction-in-progress after repair 10,451 2,088 430,050 6,613 21,833 471,035 Reclassifications (10,141) (94) - 172 10,063 - Reclassified to leasehold land payments - (715,003) - - - (715,003) Disposals (946) (92,586) (42,618) (1,621) (4,565) (142,336) Depreciation charges (293,503) (216,765) (460,387) (107,148) (441,167) (1,518,970) Closing net book amount 4,845,290 11,700,221 4,855,319 492,874 2,384,328 24,278,032 At 31 December 2016 Cost 7,468,977 14,887,093 8,557,841 1,917,478 6,514,493 39,345,882 Accumulated depreciation (2,623,687) (3,186,872) (3,702,522) (1,424,604) (4,129,003) (15,066,688) Impairment - - - - (1,162) (1,162) Net book amount 4,845,290 11,700,221 4,855,319 492,874 2,384,328 24,278,032 Year ended 31 December 2017 Opening net book amount 4,845,290 11,700,221 4,855,319 492,874 2,384,328 24,278,032 Other additions 1,849 - 69,311 13,086 123,436 207,682 Transfer in from construction-in-progress (Note 7) 345,676 179,842 843,489 80,867 203,557 1,653,431 Transfer out to construction-in-progress for improvement/modifications (Note 7) (305,208) - (987,236) (299) (18,903) (1,311,646) Transfer in from construction-in-progress after repair 310,885 - 875,497 299 16,697 1,203,378 Reclassifications 1,342 7,116 25 - (8,483) - Reclassified to leasehold land payments - (403,282) - - - (403,282) Disposals (15,942) (69,516) (234,830) (744) (15,780) (336,812) Depreciation charges (332,581) (216,075) (571,640) (115,870) (426,294) (1,662,460) Impairment charge - - (9,865) - (1,320) (11,185) Closing net book amount 4,851,311 11,198,306 4,840,070 470,213 2,257,238 23,617,138 At 31 December 2017 Cost 7,441,605 14,588,338 7,903,204 1,993,168 6,628,084 38,554,399 Accumulated depreciation (2,590,294) (3,390,032) (3,053,269) (1,522,955) (4,368,375) (14,924,925) Impairment - - (9,865) - (2,471) (12,336) Net book amount 4,851,311 11,198,306 4,840,070 470,213 2,257,238 23,617,138 6 (a) As at 31 December 2017, the ownership certificates of certain buildings of the Group with an aggregate carrying value of approximately RMB 1,858,288,000 (2016: RMB1,819,505,000) had not been obtained by the Group. After consultation made with the Company’s legal counsel, the directors of the Company consider that there is no legal restriction for the Group to apply for and obtain the ownership certificates of such buildings and it should not lead to any significant adverse impact on the operations of the Group. (b) As at 31 December 2017, fixed assets of the Group with an aggregate net book value of approximately RMB155,125,000 (2016: RMB116,953,000) had been fully depreciated but they were still in use. |
CONSTRUCTION-IN-PROGRESS
CONSTRUCTION-IN-PROGRESS | 12 Months Ended |
Dec. 31, 2017 | |
CONSTRUCTION-IN-PROGRESS [abstract] | |
Disclosure of construction-in-progress | 5 7 CONSTRUCTION-IN-PROGRESS 201 6 201 7 RMB’000 RMB’000 At 1 January 569,573 790,308 Additions due to business combination 59,992 - Transfer in from fixed assets for improvement/modifications (Note 6) 206,386 1,311,646 Other additions 1,448,767 2,185,526 Transfer to fixed assets (Note 6) (1,017,713) (1,653,431) Transfer out to fixed assets after improvement/modifications (Note 6) (471,035) (1,203,378) Impairment (5,662) - At 31 December 790,308 1,430,671 Construction-in-progress as at 31 December 2017 mainly comprise of improvement projects for road existing railway equipment in the PRC. For the year ended 31 December 2017, no interest expense (2016: Nil) had been capitalised in the construction-in-progress balance as there were no third party borrowings during the year. |
LEASEHOLD LAND PAYMENTS
LEASEHOLD LAND PAYMENTS | 12 Months Ended |
Dec. 31, 2017 | |
LEASEHOLD LAND PAYMENTS [abstract] | |
Disclosure of lease prepayments | 5 8 LEASEHOLD LAND PAYMENTS The Group’s interests in leasehold land represent prepaid operating lease payments in the PRC and its net book value are analysed as follows: RMB’000 At 1 January 2016 Cost 1,274,082 Accumulated amortisation (325,556) Net book amount 948,526 Year ended 31 December 2016 Opening net book amount 948,526 Transfer from fixed assets (Note 6) 715,003 Amortisation charges (38,670) Closing net book amount 1,624,859 At 31 December 2016 Cost 1,989,085 Accumulated amortisation (364,226) Net book amount 1,624,859 Year ended 31 December 2017 Opening net book amount 1,624,859 Transfer from fixed assets (Note 6) 403,282 Assets classified as held for sale (2,183) Amortisation charges (45,680) Closing net book amount 1,980,278 At 31 December 2017 Cost 2,388,326 Accumulated amortisation (408,048) Net book amount 1,980,278 As at 31 December 2017, land use right certificates of certain pieces of land of the Group with an aggregate carrying value of approximately RMB1,318,686,000 (2016: RMB936,304,000) had not been obtained. After consultation made with the Company’s legal counsel, the directors of the Company consider that there is no legal restriction for the Group or the Company to apply for and obtain the land use right certificates and it should not lead to any significant adverse impact on the operations of the Group or the Company. 8 LEASEHOLD LAND PAYMENTS(CONTINUED) The remaining lease period of leasehold land as at 31 December 2017 was as follows: 201 6 201 7 RMB’000 RMB’000 Lease of between 10 to 20 years 873,411 1,257,346 Lease of between 20 to 30 years 751,448 722,932 1,624,859 1,980,278 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL [abstract] | |
Disclosure of goodwill | 5 9 GOODWILL RMB’000 Year ended 31 December 201 6 and 201 7 Opening net book amount 281,255 Additions - Impairment - Closing net book amount 281,255 At 31 December 201 6 and 201 7 Cost 281,255 Accumulated impairment - Net book amount 281,255 As at 31 December 2017 and 2016, the outstanding balance of goodwill arose from the excess of a purchase consideration paid by the Company over the aggregate fair values of the identifiable assets, liabilities and contingent liabilities of the Yangcheng Railway Business acquired by the Company in 2009. On 1 January 2009, the Group integrated the Yangcheng Railway Business with the Group’s railway business in order to improve the operation efficiency. As a result, the management considers that the Yangcheng Railway Business and the Group’s other railway business (collectively the " Combined Railway Business " ) represents the lowest level of CGUs within the Group at which goodwill is monitored for internal management purposes. As a result, the goodwill balance has been allocated to the CGU comprising the Combined Railway Business. The recoverable amount of the CGU is determined based on higher of value-in-use and fair value less costs to sell. These calculations use pre-tax cash flow projections based on financial forecasts prepared by management covering a five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated below. 9 GOODWILL(CONTINUED) The key assumptions used for value-in-use calculations are as follows: Railroad business 201 6 201 7 Gross margin 18.92% 17.76% Growth rate 2 .00 % 2.00% Discount rate 12.44% 12.44% Management estimated the gross margin and growth rate based on past performance and its expectations for the market development. The discount rate used is pre-tax and reflect specific risks relating to the railroad business segment. Even if the budgeted growth rate used in the value-in-use calculation for the CGU in railroad business had been 10% lower than management’s estimates as at 31 December 2017, the Group would not need to recognise impairment charges against goodwill. Even if the estimated pre-tax discount rate applied to the discounted cash flows for the CGU in railroad business had been 1 % higher than management’s estimates as at 31 December 2017, no impairment charges had to be recognised by the Group against goodwill. |
SUBSIDIARIES
SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2017 | |
SUBSIDIARIES [abstract] | |
Disclosure of subsidiaries | 5 11 INVESTMENTS IN ASSOCIATES 201 6 201 7 RMB’000 RMB’000 Share of net assets 167,604 174,548 Less: provision for impairment - - 167,604 174,548 The movement of investments in associates of the Group during the year is as follows: 201 6 201 7 RMB’000 RMB’000 Beginning of the year 168,711 167,604 Share of results after tax 7,223 6,944 Dividend (8,330) - End of the year 167,604 174,548 As at 31 December 201 7 , the Group had direct interests in the following companies which are incorporated/established and are operating in the PRC: Name of the entity Percentage of equity interest attributable to the Company Paid-in capital Principal activities Guangzhou Tiecheng Enterprise Company Limited (“Tiecheng”) 49% RMB343,050,000 Properties leasing and trading of merchandise Shenzhen Guangzhou Railway Civil Engineering Company (“Shentu”) 49% RMB64,000,000 Construction of railroad properties All the above associates are limited liability companies and they are unlisted companies. There are no significant contingent liabilities relating to the Group’s interest in the associates and there are no significant restrictions on the transfer of assets or earnings from the associates to the Group . 11 INVESTMENTS IN ASSOCIATES (CONTINUED) Set out below are the summarised financial information for Tiecheng and Shentu which are accounted for using the equity method in the consolidated financial statements. Summarised balance sheets Tiecheng Shentu 201 6 201 7 201 6 201 7 RMB’000 RMB’000 RMB’000 RMB’000 Current assets 87,733 105,556 921,761 780,104 Non-current assets 339,409 333,602 7,614 12,151 Total assets 427,142 439,158 929,375 792,255 Current liabilities 210,553 210,546 803,713 664,646 Non-current liabilities 202 - - - Total liabilities 210,755 210,546 803,713 664,646 Equity 216,387 228,612 125,662 127,609 Share of net assets 106,030 112,020 61,574 62,528 Carrying amount of interest in associates 106,030 112,020 61,574 62,528 Summarized comprehensive income statements Tiecheng Shentu 2015 2016 201 7 2015 2016 201 7 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Revenue 32,955 41,217 44,351 467,911 493,277 506,608 Net profit 4,516 8,800 12,225 583 5,941 1,947 Other comprehensive income - - - - - - Total comprehensive income for the year 4,516 8,800 12,225 583 5,941 1,947 Reconciliation of the summarised financial information presented to the carrying amount of its interests in associates as follows: Tiecheng Shentu Total 201 6 201 7 201 6 201 7 201 6 201 7 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Opening net assets 207,587 216,387 136,721 125,662 344,308 342,049 P rofit for the year 8,800 12,225 5,941 1,947 14,741 14,172 Dividend - - (17,000) - (17,000) - Closing net assets 216,387 228,612 125,662 127,609 342,049 356,221 Percentage of ownership interest 49% 49% 49% 49% 49% 49% Carrying value 106,030 112,020 61,574 62,528 167,604 174,548 |
INVESTMENTS IN ASSOCIATES
INVESTMENTS IN ASSOCIATES | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS IN ASSOCIATES [abstract] | |
Disclosure of associates | 5 11 INVESTMENTS IN ASSOCIATES 201 6 201 7 RMB’000 RMB’000 Share of net assets 167,604 174,548 Less: provision for impairment - - 167,604 174,548 The movement of investments in associates of the Group during the year is as follows: 201 6 201 7 RMB’000 RMB’000 Beginning of the year 168,711 167,604 Share of results after tax 7,223 6,944 Dividend (8,330) - End of the year 167,604 174,548 As at 31 December 201 7 , the Group had direct interests in the following companies which are incorporated/established and are operating in the PRC: Name of the entity Percentage of equity interest attributable to the Company Paid-in capital Principal activities Guangzhou Tiecheng Enterprise Company Limited (“Tiecheng”) 49% RMB343,050,000 Properties leasing and trading of merchandise Shenzhen Guangzhou Railway Civil Engineering Company (“Shentu”) 49% RMB64,000,000 Construction of railroad properties All the above associates are limited liability companies and they are unlisted companies. There are no significant contingent liabilities relating to the Group’s interest in the associates and there are no significant restrictions on the transfer of assets or earnings from the associates to the Group . 11 INVESTMENTS IN ASSOCIATES (CONTINUED) Set out below are the summarised financial information for Tiecheng and Shentu which are accounted for using the equity method in the consolidated financial statements. Summarised balance sheets Tiecheng Shentu 201 6 201 7 201 6 201 7 RMB’000 RMB’000 RMB’000 RMB’000 Current assets 87,733 105,556 921,761 780,104 Non-current assets 339,409 333,602 7,614 12,151 Total assets 427,142 439,158 929,375 792,255 Current liabilities 210,553 210,546 803,713 664,646 Non-current liabilities 202 - - - Total liabilities 210,755 210,546 803,713 664,646 Equity 216,387 228,612 125,662 127,609 Share of net assets 106,030 112,020 61,574 62,528 Carrying amount of interest in associates 106,030 112,020 61,574 62,528 Summarized comprehensive income statements Tiecheng Shentu 2015 2016 201 7 2015 2016 201 7 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Revenue 32,955 41,217 44,351 467,911 493,277 506,608 Net profit 4,516 8,800 12,225 583 5,941 1,947 Other comprehensive income - - - - - - Total comprehensive income for the year 4,516 8,800 12,225 583 5,941 1,947 Reconciliation of the summarised financial information presented to the carrying amount of its interests in associates as follows: Tiecheng Shentu Total 201 6 201 7 201 6 201 7 201 6 201 7 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Opening net assets 207,587 216,387 136,721 125,662 344,308 342,049 P rofit for the year 8,800 12,225 5,941 1,947 14,741 14,172 Dividend - - (17,000) - (17,000) - Closing net assets 216,387 228,612 125,662 127,609 342,049 356,221 Percentage of ownership interest 49% 49% 49% 49% 49% 49% Carrying value 106,030 112,020 61,574 62,528 167,604 174,548 |
DEFERRED TAX ASSETS_(LIABILITIE
DEFERRED TAX ASSETS/(LIABILITIES) | 12 Months Ended |
Dec. 31, 2017 | |
DEFERRED TAX ASSETS/(LIABILITIES) [abstract] | |
Disclosure of deferred taxes | 5 12 DEFERRED TAX ASSETS/(LIABILITIES) 201 6 201 7 RMB’000 RMB’000 Deferred tax assets 98,862 115,716 Less: Offsetting of deferred tax liabilities (18,933) (78,711) Deferred tax assets(net) 79,929 37,005 Deferred tax liabilities (87,816) (145,102) Less: Offsetting of deferred tax assets 18,933 78,711 Deferred tax liabilities(net) (68,883) (66,391) 11,046 (29,386) The analysis of deferred tax assets and deferred tax liabilities is as follows: As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Deferred tax assets: -Deferred tax assets to be recovered after more than 12 months 97,706 114,387 -Deferred tax assets to be recovered within 12 months 1,156 1,329 98,862 115,716 Deferred tax liabilities: -D eferred tax liabilities to be recovered after more than 12 months (83,937) (142,159) -Deferred tax liabilities to be recovered within 12 months (3,879) (2,943) (87,816) (145,102) The movement in deferred tax assets and liabilities of the Group during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows: 12 DEFERRED TAX ASSETS/(LIABILITIES) (CONTINUED) At 1 January 2016 (Charged)/ At 31 (Charged)/ At 31 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Deferred tax assets: Impairment provision for receivables 7,828 (825) 7,003 (2,230) 4,773 Impairment provision for fixed assets and construction-in-progress 2,739 1,416 4,155 2,793 6,948 Impairment provision for materials and supplies 11,837 (5,843) 5,994 1,126 7,120 Differences in accounting base and tax base of government grants 24,952 768 25,720 (201) 25,519 Differences in accounting base and tax base of employee benefits obligations 35,207 4,448 39,655 992 40,647 Loss on disposal of fixed assets 30,805 (14,520) 16,285 14,424 30,709 Others 50 - 50 (50) - 113,418 (14,556) 98,862 16,854 115,716 At 1 January 2016 Charged/ At 31 Charged/ At 31 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Deferred tax liabilities: Differences in accounting base and tax base in recognition of fixed assets 9,607 (1,340) 8,267 (404) 7,863 Differences in accounting base and tax base in recognition of leasehold land payments 71,376 (2,493) 68,883 (2,493) 66,390 Changes in the fair value of available-for-sale financial assets - - - 60,647 60,647 Others 10,562 104 10,666 (464) 10,202 91,545 (3,729) 87,816 57,286 145,102 12 DEFERRED TAX ASSETS/(LIABILITIES) (CONTINUED) Deferred income tax assets are recognised for tax loss carry-forwards and other temporary difference to the extent that the realisation of the related tax benefit through future taxable profits is probable. The Group did not recognise deferred income tax assets in respect of tax losses and other temporary difference amounting to RMB95,370,000 (2016: RMB89,630,000) arising from operations of subsidiaries which do not foresee to have enough tax deductible assessable profits in the near future. As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Tax losses that can be carried forward (Note a) 77,328 82,918 Deductible temporary differences 12,302 12,452 89,630 95,370 Note a: The tax loss carry-forwards in which no deferred income tax assets were recognised will expire in the following years: As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 2017 15,405 - 2018 14,307 13,499 2019 6,516 6,371 2020 18,478 18,478 2021 22,622 22,325 2022 - 22,245 77,328 82,918 |
LONG-TERM PREPAID EXPENSES
LONG-TERM PREPAID EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
LONG-TERM PREPAID EXPENSES [abstract] | |
Disclosure of long-term prepaid expenses | 5 13 LONG-TERM PREPAID EXPENSES The long-term prepaid expenses represented staff uniforms. The movements of long-term prepaid expenses are set forth as follows: 201 6 201 7 RMB’000 RMB’000 At 1 January Cost 63,770 64,077 Accumulated amortisation (49,285) (56,253) Net book amount 14,485 7,824 Year ended 31 December Opening net book amount 14,485 7,824 Additions 307 28,745 Amortisation (6,968) (3,168) Closing net book amount 7,824 33,401 At 31 December Cost 64,077 92,822 Accumulated amortisation (56,253) (59,421) Net book amount 7,824 33,401 |
FINANCIAL INSTRUMENTS BY CATEGO
FINANCIAL INSTRUMENTS BY CATEGORY | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS BY CATEGORY [abstract] | |
Disclosure of detailed information about financial instruments | 5 14 FINANCIAL INSTRUMENTS BY CATEGORY Loans and receivables Available- for-sale Total RMB’000 RMB’000 RMB’000 Financial assets as at 31 December 2017 Available-for-sale investments (Note 15) - 296,414 296,414 Long-term receivable (Note 16) 31,274 - 31,274 Trade and other receivables excluding prepayments (Notes 18 and 19) 4,417,317 - 4,417,317 Short-term deposits (Note 20) 108,000 - 108,000 Cash and cash equivalents (Note 20) 1,160,515 - 1,160,515 Total 5,717,106 296,414 6,013,520 Financial assets as at 31 December 2016 Available-for-sale investments (Note 15) - 53,826 53,826 Long-term receivable (Note 16) 31,406 - 31,406 Trade and other receivables excluding prepayments (Notes 18 and 19) 3,665,646 - 3,665,646 Short-term deposits (Note 20) 108,000 - 108,000 Cash and cash equivalents (Note 20) 1,359,656 - 1,359,656 Total 5,164,708 53,826 5,218,534 14 FINANCIAL INSTRUMENTS BY CATEGORY (CONTINUED) Financial liabilities as at 31 December 2017 Other Financial liabilities Trade and other payables excluding other tax payables, employee salary and benefits payables and advances (Notes 25 and 26) 2,356,953 Payables for fixed assets and construction-in-progress 2,214,547 Dividends payable 12,893 Total 4,584,393 Financial liabilities as at 31 December 2016 Trade and other payables excluding other tax payables, employee salary and benefits payables and advances (Notes 25 and 26) 2,201,483 Payables for fixed assets and construction-in-progress 1,765,185 Dividends payable 15,542 Total 3,982,210 |
AVAILABLE-FOR-SALE INVESTMENTS
AVAILABLE-FOR-SALE INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
AVAILABLE-FOR-SALE INVESTMENTS [abstract] | |
Disclosure of available-for-sale investments | 5 15 AVAILABLE-FOR-SALE INVESTMENTS 201 6 201 7 RMB’000 RMB’000 Investments in unlisted companies 53,826 296,414 The available-for-sale investments mainly represent equity interests held by the Group in certain unlisted companies with percentage ownership less than 2% individually. (i) In 2017, one substantial investee company within available-for sale instruments sent a written proposal to all its shareholders, requesting for additional capital injections to be made according to the respective percentage of equity interests held by each investor at the assessed enterprise value of that investee company (“Assessed Fair Value”). Accordingly, the carrying amount of the whole investment in this investee company as at 31 December 2017 had been stated at fair value(RMB 280,088,000) determined based on the Assessed Fair Value and an amount of fair value changes of RMB 242,588,000 had been included in other comprehensive income (Note 22). 15 AVAILABLE-FOR-SALE INVESTMENTS(CONTINUED) The following table presents the changes in level 3 items for the periods ended 31 December 2017: RMB’000 Closing balance 31 December 2016 - Transfer from cost 37,500 Fair value changes recognised in other comprehensive income 242,588 Closing balance 31 December 2017 280,088 (i) Due to the fact that there is no quoted market price in an active market available for the assessment of the fair values of other remaining investments, the directors of the Company are of the opinion that their fair values could not be reliably measured by any reasonable valuation methods. As a result, the investments in other unlisted companies had been carried at cost, subject to review for impairment loss. As at 31 December 2017, no impairment provision was considered necessary by the directors. |
LONG-TERM RECEIVABLE
LONG-TERM RECEIVABLE | 12 Months Ended |
Dec. 31, 2017 | |
LONG-TERM RECEIVABLE [abstract] | |
Disclosure of long-term receivable | 15 16 LONG-TERM RECEIVABLE The long-term receivable balance represents freight service fees receivable from a third party customer which was acquired from Yangcheng Railway Business. On the acquisition date of Yangcheng Railway Business, it was remeasured at its then fair value, which was assessed by the discounted cash flow method by making reference to the repayment schedule agreed by both parties. The balance is subsequently carried at amortised cost using an average effective interest rate of 6.54%. The balance approximated its fair value as at 31 December 2017. |
MATERIALS AND SUPPLIES
MATERIALS AND SUPPLIES | 12 Months Ended |
Dec. 31, 2017 | |
MATERIALS AND SUPPLIES [abstract] | |
Disclosure of materials and supplies | 15 17 MATERIALS AND SUPPLIES As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Raw materials 184,520 185,639 Reusable rail-line track materials 79,311 76,017 Accessories 67,236 67,493 Retailing consumables 1,540 1,578 332,607 330,727 17 MATERIALS AND SUPPLIES (CONTINUED) The costs of materials and supplies consumed by the Group during the year were recognised as "operating expenses" in the amount of RMB1,627,992,000 (2016: RMB1,697,166,000 and 2015: RMB1,565,648,000). As at 31 December 2017, the balance of the provision for writing down the materials and supplies to their net realisable values was approximately RMB28,466,000 (2016: RMB23,976,000). During the year, additional provision of RMB7,844,000 was made and RMB3,354,000 was written off arising from realization of losses in the disposal of these assets (2016: RMB18,163,000). |
TRADE RECEIVABLES
TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
TRADE RECEIVABLES [abstract] | |
Disclosure of trade receivables | 17 18 TRADE RECEIVABLES As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Trade receivables 3,369,331 4,148,413 Including: receivables from related parties 730,061 2,808,052 Less: Provision for impairment of receivables (4,965) (6,203) 3,364,366 4,142,210 As at 31 December 2017 and 2016, the Group’s trade receivables were all denominated in RMB. The majority of the trade receivable were from state-owned railroad companies or companies in transportation industry. The passenger railroad services are usually transacted on a cash basis. The Group does not have formal contractual credit terms agreed with its customers for freight services but the trade receivables are usually settled within a period less than one year. As a result, the Group regards any receivable balance within one year being not overdue. The aging analysis of the outstanding trade receivables is as follows: As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Within 1 year (Note 3.1(b)) 2,517,281 2,799,028 Over 1 year but within 2 years 588,640 763,812 Over 2 years but within 3 years 223,675 522,122 Over 3 years 39,735 63,451 3,369,331 4,148,413 18 TRADE RECEIVABLES(CONTINUED) Management performs ongoing credit evaluations of its customers/debtors’ financial condition and generally does not require collateral from the customers/debtors. After assessing the expected realisability and timing for collection of the outstanding balances, the Group maintains a provision for impairment of trade receivables and actual losses incurred have been within management’s expectation. As at 31 December 2017, the Group’s trade receivables of approximately RMB1,343,182,000 (2016: RMB847,085,000) were past due but not impaired. These relate to a number of independent customers that are state-owned companies engaged in the railroad and transportation business, including High Speed train operations in the PRC. There had been continuous businesses transactions carried out with the Group with these customers and there was continuous repayment made and no history of default. The aging analysis of these trade receivables is as follows: As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Over 1 year but within 2 years 588,640 758,141 Over 2 years but within 3 years 223,675 522,122 Over 3 years but within 5 years 34,770 62,919 847,085 1,343,182 As at 31 December 2017, the Group’s trade receivables of approximately RMB6,203,000 (2016:RMB4,965,000) had been impaired and provided for. The related customers were in significant financial difficulties. The aging analysis of these receivables is as follows: 201 6 201 7 RMB’000 RMB’000 Over 1 year but within 2 years - 5,671 Over 5 years 4,965 532 4,965 6,203 Movements on the provision for impairment of trade receivables are as follows: 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 At 1 January 7,003 8,395 4,965 Provision for impairment loss 3,305 6 5,904 Reversal (127) - - Written-off (1,786) (3,436) (4,666) At 31 December 8,395 4,965 6,203 18 TRADE RECEIVABLES(CONTINUED) The maximum exposure to credit risk at the reporting date is the carrying value mentioned above. The Group does not hold any collateral as security. |
PREPAYMENTS AND OTHER RECEIVABL
PREPAYMENTS AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
PREPAYMENTS AND OTHER RECEIVABLES [abstract] | |
Disclosure of prepayments and other receivables | 17 19 PREPAYMENTS AND OTHER RECEIVABLES As at 31 December 201 6 As at 31 December 2017 RMB’000 RMB’000 Due from third parties 304,530 268,715 Due from related parties 25,961 45,536 330,491 314,251 As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Other receivables 314,616 288,432 Less: Provision for impairment loss (13,336) (13,325) Other receivables, net (Note (a)) 301,280 275,107 Prepayments (Note (b)) 29,211 39,144 330,491 314,251 (a) Other receivables mainly represent miscellaneous deposits and receivables arising from the course of provision of non-railway transportation services by the Group. As of 31 December 2017, the input VAT with related invoices not been received or verified amounted to RMB122,190,000 (2016: RMB 156,072,000). Movements on the provision for impairment of other receivables are as follows: 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 At 1 January 62,060 13,377 13,336 Provision for impairment loss 62 - - Reversal of impairment loss provision (7,699) (1) (3) Written-off (28,734) (40) (8) Elimination arising from business combination (12,312) - - At 31 December 13,377 13,336 13,325 (b) Prepayments mainly represent amounts paid in advance to the suppliers for utilities and other operating expenses of the Group. 19 PREPAYMENTS AND OTHER RECEIVABLES (CONTINUED) The carrying amounts of the Group’s prepayments and other receivables are denominated in the following currencies: As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 RMB 330,425 314,184 HKD 66 67 330,491 314,251 The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. The Group does not hold any collateral as security. |
CASH AND CASH EQUIVALENTS AND S
CASH AND CASH EQUIVALENTS AND SHORT-TERM DEPOSITS | 12 Months Ended |
Dec. 31, 2017 | |
CASH AND CASH EQUIVALENTS AND SHORT-TERM DEPOSITS [abstract] | |
Disclosure of cash and cash equivalents and short-term deposits | 17 20 CASH AND CASH EQUIVALENTS AND SHORT-TERM DEPOSITS As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Cash at bank and on hand 1,007,156 1,108,015 Term deposits with initial term not more than three months 352,500 52,500 Cash and cash equivalents 1,359,656 1,160,515 Term deposits with initial term of over three months (Note) 108,000 108,000 1,467,656 1,268,515 Note: The original effective interest rate of term deposits was 1.56% per annum (2016: 1.65% per annum). The carrying amounts of the cash and cash equivalents and short-term deposits are denominated in the following currencies: As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 RMB 1,351,880 1,235,719 HKD 115,680 32,650 USD 96 146 1,467,656 1,268,515 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2017 | |
SHARE CAPITAL [abstract] | |
Disclosure of classes of share capital | 17 21 SHARE CAPITAL As at 31 December 2017 and 2016, the total authorised number of ordinary shares is 7,083,537,000 shares with a par value of RMB1.00 per share. These shares are divided into A shares and H shares. They rank pari passu against each other and they were fully paid up. As at 31 December 2015 Movement As at 31 December 2016 Movement As at 31 December 2017 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Authorised, issued and fully paid: Listed shares - H shares 1,431,300 - 1,431,300 - 1,431,300 - A shares 5,652,237 - 5,652,237 - 5,652,237 Total 7,083,537 - 7,083,537 - 7,083,537 |
RESERVES
RESERVES | 12 Months Ended |
Dec. 31, 2017 | |
RESERVES [abstract] | |
Disclosure of reserves | 17 22 RESERVES According to the provisions of the Articles of Association of the Company, the Company shall first set aside 10% of its profit after tax attributable to shareholders as indicated in the Company’s statutory financial statements for the statutory surplus reserve (except where the reserve has reached 50% of the Company’s registered share capital) in each year. The Company may also make appropriations from its profit attributable to shareholders to a discretionary surplus reserve, provided that it is approved by a resolution passed in a shareholders’ general meeting. These reserves cannot be used for purposes other than those for which they are created and are not distributable as cash dividends without the prior approval obtained from the shareholders in a shareholders’ general meeting under specific circumstances. When the statutory surplus reserve is not sufficient to make good for any losses of the Company in previous years, the current year profit attributable to shareholders shall be used to make good the losses before any allocations are set aside for the statutory surplus reserve. The statutory surplus reserve, the discretionary surplus reserve and the share premium account could be converted into share capital of the Company provided it is approved by a resolution passed in a shareholders’ general meeting with the provision that the ending balance of the statutory surplus reserve does not fall below 25% of the registered share capital amount. The Company may either allot newly created shares to the shareholders at the same proportion of the existing number of shares held by these shareholders, or it may increase the par value of each share. 22 RESERVES (CONTINUED) For the year ended 31 December 2015, 2016 and 2017, the directors proposed the following appropriations to reserves of the Company: 2015 2015 2016 2016 2017 2017 Percentage RMB’000 Percentage RMB’000 Percentage RMB’000 Statutory surplus reserve 10% 111,760 10% 117,050 10% 101,982 In accordance with the provisions of the Articles of Association of the Company, the profit after appropriation to reserves and available for distribution to shareholders shall be the lower of the retained earnings determined under (a) PRC GAAP or (b) IFRS. Due to the fact that the statutory financial statements of the Company have been prepared in accordance with PRC GAAP, the retained earnings so reported may be different from those reported in the statement of changes in shareholders’ equity prepared under IFRS contained in these financial statements. The main difference between the retained earnings of the Company determined under PRC GAAP and those determined under IFRS was relating to accounting policies in respect of investment in associates adopted under PRC GAAP and IFRS. For the year 2015, 2016 and 2017, the movement of ‘Special reserve - Safety Production Fund’ of the Group are as below: 2015 2016 2017 RMB’000 RMB’000 RMB’000 Beginning of the year - - - Appropriation for retained earnings 192,860 204,792 227,250 Utili s ation (192,860) (204,792) (227,250) End of the year - - - The Company is engaged in passenger and freight transportation business. In accordance with the regulations issued by Ministry of Finance and State Administration of Work Safety of the PRC, the Company is required to establish a special reserve ("Safety Production Fund") calculated based on the passenger and freight transportation revenue of the previous year using the following percentages: (a) 1% for regular freight business; (b) 1.5% for passenger transportation, dangerous goods delivery business and other special business. 22 RESERVES (CONTINUED) The Safety Production Fund is mainly used for the renovation and maintenance of security equipment and facilities. For the purpose of the consolidated financial statements under IFRS, such reserve is established through an appropriation from retained earnings based on the aforementioned method. When the Safety Production Fund is actually utilised, the actual expenses incurred are charged to profit or loss. For the year 2015, 2016 and 2017, the movement of other comprehensive income of the Group are as below: 2015 2016 2017 RMB’000 RMB’000 RMB’000 Beginning of the year - - - Addition due to fair value changes on available-for-sale investments - - 242,588 Addition due to deferred liabilities related to fair value changes on available-for-sale investments - - (60,647) End of the year - - 181,941 The additions of other comprehensive income in current year is attributable to the fair value changes of investment in an available-for-sale financial instrument as mentioned in Note 15. |
DEFERRED INCOME
DEFERRED INCOME | 12 Months Ended |
Dec. 31, 2017 | |
DEFERRED INCOME RELATING TO GOVERNMENT GRANTS [abstract] | |
Disclosure of deferred income relating to government grants | 17 23 DEFERRED INCOME 2016 2017 RMB’000 RMB’000 Government grants 106,810 105,754 Others - 37 Total 106,810 105,791 Government grants relating to costs are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets. |
EMPLOYEE BENEFITS OBLIGATIONS
EMPLOYEE BENEFITS OBLIGATIONS | 12 Months Ended |
Dec. 31, 2017 | |
EMPLOYEE BENEFITS OBLIGATIONS [abstract] | |
Disclosure of employee benefits obligations | 17 24 EMPLOYEE BENEFITS OBLIGATIONS As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Employee benefits obligations(Note 26) 34,043 30,745 Less: current portion included in accruals and other payables (34,043) (30,745) - - 24 EMPLOYEE BENEFITS OBLIGATIONS (CONTINUED) Pursuant to a redundancy plan implemented by the Group in 2006, selected employees who had met certain specified criteria and accepted voluntary redundancy were provided with an offer of early retirement benefits, up to their official age of retirement. Such arrangements required specific approval granted by management of the Group. With the acquisition of the Yangcheng Railway Business in 2007 and Guangmeishan Railway Company Limited(“GRCL”) Business and Guangdong Sanmao Railway Company Limited (“GSRC”) Business in 2016 (Note37), the Group has also assumed certain retirement and termination benefits obligations associated with the operations of Yangcheng Railway Business, GSRL Business and GSRC Business. These obligations mainly include the redundancy termination benefits similar to those mentioned above, as well as the obligation for funding post-retirement medical insurance premiums of retired employees before the respective acquisitions. The employee benefits obligations have been provided for by the Group at amounts equal to the total expected benefit payments. Where the obligation does not fall due within twelve months, the obligation payable has been discounted using a pre-tax rate that reflects management’s current market assessment of the time value of money and risk specific to the obligation. The discount rate was determined with reference to treasury bond yields in the PRC. The movement in the employee benefits obligation during current year is as follows: 2016 2017 RMB’000 RMB’000 At 1 January 13,380 34,043 Additions 24,727 - Payments (4,064) (3,298) At 31 December 34,043 30,745 |
TRADE PAYABLES
TRADE PAYABLES | 12 Months Ended |
Dec. 31, 2017 | |
TRADE PAYABLES [abstract] | |
Disclosure of trade payables | 17 25 TRADE PAYABLES As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Payables to third parties 610,472 614,822 Payables to related parties 533,051 710,255 1,143,523 1,325,077 The aging analysis of trade payables was as follows: As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Within 1 year 860,315 1,075,298 Over 1 year but within 2 years 258,227 180,294 Over 2 years but within 3 years 7,477 49,359 Over 3 years 17,504 20,126 1,143,523 1,325,077 |
ACCRUALS AND OTHER PAYABLES
ACCRUALS AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUALS AND OTHER PAYABLES [abstract] | |
Disclosure of accrued expenses and other liabilities | 17 26 ACCRUALS AND OTHER PAYABLES As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Due to third parties 1,188,416 1,017,309 Due to related parties 430,331 445,922 1,618,747 1,463,231 As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Payables to GEDC assumed by business combination with Zengcheng Lihua 368,560 377,703 Advances received from customers 295,088 152,010 Other deposits received 242,104 226,453 Deposits received for construction projects 207,877 203,886 Salary and welfare payables 172,299 178,427 Amount received on behalf of Labour Union 68 ,914 73,463 Other taxes payable 59,357 70,173 Deposits received from ticketing agencies 36,018 34,298 Employee benefits obligations (Note 24) 34,043 30,745 Housing maintenance fund 15,692 15,740 Other payables 118,795 100,333 1,618,747 1,463,231 |
AUDITORS' REMUNERATION
AUDITORS' REMUNERATION | 12 Months Ended |
Dec. 31, 2017 | |
AUDITORS' REMUNERATION [abstract] | |
Disclosure of auditors' remuneration | 17 27 AUDITORS’ REMUNERATION Auditors’ remuneration in respect of audit and non-audit services provided by the auditors for the year ended 31 December 2017 were RMB8,400,000 and RMB950,000 respectively (2016: RMB8,080,000 and RMB190,000 respectively and 2015: RMB8,080,000 and RMB250,000, respectively). |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
EMPLOYEE BENEFITS [abstract] | |
Disclosure of employee benefits | 17 28 EMPLOYEE BENEFITS 201 5 201 6 201 7 R MB ’000 R MB ’000 R MB ’000 Wages and salaries 3,672,234 4,362,506 4,848,830 Provision for medical, housing scheme and other employee benefits (a) 916,965 1,114,918 1,220,708 Contributions to the defined contribution scheme (b) 620,898 741,923 772,682 5,210,097 6,219,347 6,842,220 (a) Housing scheme In accordance with the PRC housing reform regulations, the Group is required to make contributions to a state-sponsored housing fund at 10% or 12% of the salaries of the employees. At the same time, the employees are also required to make a contribution at 10% or 12% of the salaries out of their payroll. The employees are entitled to claim the entire sum of the fund under certain specified withdrawal circumstances. The Group has no further legal nor constructive obligation towards housing benefits of these employees offered beyond the above contributions made. (b) D efined contribution pension scheme All the full-time employees of the Group are entitled to join a statutory pension scheme. The employees would receive pension payments equal to their basic salaries payable upon their retirement up to their death. Pursuant to the PRC laws and regulations, contributions to the basic old age insurance for the Group’s local staff are to be made monthly to a government agency based on 26% of the standard salary set by the provincial government, of which 18% is borne by the Company or its subsidiaries and the remainder 8% is borne by the employees. The government agency is responsible for the pension liabilities due to the employees upon their retirement. The Group accounts for these contributions on an accrual basis and charges the related contributions to expense in the year to which the contributions relate. (c) Five highest paid individuals The five individuals whose emoluments were the highest in the Group for the year include one director (2016: one), three senior executives (2016: four) and one supervisor (2016: Nil) . The emolument range of each individual is within the band of Nil to RMB498,000 (2016 : Nil to RMB 447,255). |
OTHER LOSSES - NET
OTHER LOSSES - NET | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LOSSES - NET [abstract] | |
Disclosure of other losses - net | 17 29 OTHER LOSSES– NET 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Loss on disposal of fixed assets - net (49,008) (133,073) (77,026) Interest income from banks 38,145 24,772 18,974 Dividend income on available-for-sale investments 5,884 5,884 6,473 G overnment grants 7,349 9,769 13,272 Impairment of fixed assets(Note 6) (80,393) - (11,185) Loss arising from business combination (45,073) - - Impairment of construction-in-progress(Note 7) (2,434) (5,662) - Income from compensation 1,167 749 295 Impairment of trade receivables (Note 18) - (6) (5,904) Unwinding of interest accrued on long-term receivable - 2,602 2,868 Others 9,736 (13,305) 3,756 (114,627) (108,270) (48,477) |
FINANCE (COSTS)_INCOME - NET
FINANCE (COSTS)/INCOME - NET | 12 Months Ended |
Dec. 31, 2017 | |
FINANCE (COSTS)/INCOME - NET [abstract] | |
Disclosure of finance income (cost) | 17 30 FINANCE (COSTS)/INCOME - NET 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Bank charges (7,387) (3,823) (2,866) Amortisation of interest for employee benefit obligations (Note 2 4 ) (226) - - Net foreign exchange (losses) / gains 3,005 6,374 (7,304) (4,608) 2,551 (10,170) |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAX EXPENSE [abstract] | |
Disclosure of income tax expense | 17 31 INCOME TAX EXPENSE In 2015 , 2016 and 2017 , the applicable income tax rate of the Company was 25%. An analysis of the current year income tax expense is as follows: 201 5 2016 2017 RMB’000 RMB’000 RMB’000 Current income tax 416,480 379,482 355,579 Deferred income tax (Note 1 2 ) (27,950) 10,827 (20,215) 388,530 390,309 335,364 The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the tax rate of the home country of the Company as follows: 201 5 2016 2017 RMB’000 RMB’000 RMB’000 Profit before tax 1,451,838 1,544,009 1,347,132 Tax calculated at the statutory rate of 2 5 % (20 16 and 2015 : 25 %) 362,960 386,002 336,783 Effect of income not subject to tax (2,096) (3,277) (3,354) Effect of expenses not deductible for tax purposes 1,920 1,928 663 Effect of undeductible loss arising from business combination 11,268 - - Reversal of deferred tax assets for the impairment loss of investments in associates and other receivable recognized in prior years 10,500 - - Tax losses for which no deferred tax asset was recognised 4,619 5,656 5,561 Over provision of previous year’s income tax - - (3,886) Utilisation of previously unrecognised tax losses (641) - (403) Income tax expense 388,530 390,309 335,364 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE [abstract] | |
Disclosure of earnings per share | 17 32 EARNINGS PER SHARE The calculation of basic earnings per share is based on the net profit for the year attributable to equity holders of approximately RMB1,015,361,000 (2015 and 2016: RMB1,070,822,000 and RMB1,158,253,000 ), divided by the weighted average number of ordinary shares outstanding during the year of 7,083,537,000 shares (2015 and 2016: 7,083,537,000 shares). There were no dilutive potential ordinary shares during each of the three years in the period ended December 31, 2017. The calculation of earnings per equivalent ADS is based on the net profit for the year attributable to equity holders, divided by the weighted average equivalent ADSs (one ADS represents 50 H Shares) outstanding during the year of 141,670,740 ADSs (2015 and 2016: 141,670,740 ADSs). 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Profit attributable to owners of the Company 1,070,822 1,158,253 1,015,361 Weighted average number of ordinary shares in issue 7,083,537 7,083,537 7,083,537 W eighted average equivalent ADSs 141,670 141,670 141,670 Basic and diluted earnings per share RMB0.15 RMB0.16 RMB0.14 Basic and diluted earnings per equivalent ADS RMB7.56 RMB8.18 RMB7.17 |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2017 | |
ifrs DIVIDENDS [abstract] | |
Disclosure of dividends | 17 33 DIVIDENDS The dividends paid to the ordinary shareholders of the Group in 20 15 , 20 16 and 20 17 were all RMB566,683,000 (RMB0.0 8 per share) respectively. 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Final, proposed, of RMB0. 08 (20 15 and 201 6 : RMB0.08) per ordinary share 566,683 566,683 566,683 At the meeting of the directors held on 28 March 2018, the directors proposed a final dividend of RMB0.08 per ordinary share for the year ended 31 December 2017, which is subject to the approval by the shareholders in general meeting. This proposed dividend was not reflected as a dividend payable in the Group’s and the Company’s financial statements as at 31 December 2017. |
CASH FLOW GENERATED FROM OPERAT
CASH FLOW GENERATED FROM OPERATIONS | 12 Months Ended |
Dec. 31, 2017 | |
CASH FLOW GENERATED FROM OPERATIONS [abstract] | |
Disclosure of cash flow generated from operations | 17 34 CASH FLOW GENERATED FROM OPERATIONS (a) Reconciliation from profit before income tax to net cash generated from operations: 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Profit before income tax: 1,451,838 1,544,009 1,347,132 Adjustments for: Depreciation of fixed assets (Note 6) 1,411,742 1,518,970 1,662,460 Impairment of fixed assets (Note 6) 80,393 - 11,185 Impairment of construction-in-progress (Note 7) 2,434 5,662 - Loss arising from business combination 45,073 - - Provision for/ (reversal of) impairment of materials and supplies (Note 17) 64,096 (5,209) 7,844 Amortisation of leasehold land payments (Note 8) 28,413 38,670 45,680 Loss on disposal of fixed assets and costs on repairs 49,008 133,073 321,741 Amortisation of long-term prepaid expenses (Note 13) 14,179 6,968 3,168 Amortisation of interest for employee benefit obligations (Note 2 4 ) 226 - - Share of results of associates , net of tax (Note 1 1 ) (2,499) (7,223) (6,944) Dividend income on available-for-sale investments (Note 29 ) (5,884) (5,884) (6,473) Provision for impairment of receivables (4,459) 5 5,901 Amortisation of deferred income (2,529) (3,258) (3,282) Interest income (5,502) (4,353) (4,647) Operating profit before working capital changes 3,126,529 3,221,430 3,383,765 Increase in trade receivables (553,980) (1,034,064) (419,349) Decrease in materials and supplies 34,843 14,432 6,121 Increase in prepayments and other receivables 83,553 (47,594) (12,975) Decrease in long-term receivable 2,000 2,000 3,000 I ncrease in trade payables (270,151) 34,178 181,554 (Decrease)/increase in accruals and other payables 97,585 22,481 (179,412) Net cash generated from operations 2,520,379 2,212,863 2,962,704 34 CASH FLOW GENERATED FROM OPERATIONS (CONTINUED) (b) In the cash flow statement, proceeds from disposal of fixed assets comprise: 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Net book amount ( Note 6 ) 83,944 142,336 336,812 Receivable arising from disposal of fixed assets (21,627) 20,349 - Payable arising from disposal of fixed assets - - (2,457) Transfer to materials and supplies (5,488) (11,662) (12,087) Loss on disposal of fixed assets and costs on repairs (49,008) (133,073) (321,741) Proceeds from disposal of fixed assets 7,821 17,950 527 |
CONTINGENCY
CONTINGENCY | 12 Months Ended |
Dec. 31, 2017 | |
CONTINGENCY [abstract] | |
Disclosure of contingent liabilities | 17 35 CONTINGENCY There were no significant contingent liabilities as at 31 December 2017 and up to the date of approval of these financial statements. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS [abstract] | |
Disclosure of commitments | 17 36 COMMITMENTS (a) Capital commitments As at 31 December 2017, the Group had the following capital commitments: As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Contracted but not provided for 769,013 1,341,055 Authorised but not contracted for 1,165,237 518,945 A substantial amount of these commitments is related to the reform of stations or facilities relating to the existing railway lines of the Company, which would be financed by self-generated operating cash flow. 36 COMMITMENTS (CONTINUED) (b) Operating lease commitments In connection with the acquisition of Yangcheng Railway Business, the Company signed an agreement on 15 November 2004 with Guangzhou Railway Group for leasing the land use rights associated with the land on which the acquired assets of Yangcheng Railway Business are located. The agreement became effective upon the completion of the acquisition on 1 January 2007 and the remaining lease term is 20 years, renewable at the discretion of the Company. According to the terms of the agreement, the rental for such lease would be agreed by both parties every year with a maximum amount not exceeding RMB74,000,000 per year. During the year ended 31 December 2017, the related lease rental paid and payable was approximately RMB57,358,000 ( 2015 and 2016: RMB55,090,000). |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2017 | |
BUSINESS COMBINATIONS [abstract] | |
Disclosure of detailed information about business combinations | 17 37 BUSINESS COMBINATIONS On 26 October 2016, the Company entered into agreements to acquire certain railway service businesses of Guangzhou Railway Group, Guangmeishan Railway Company Limited (“GRCL”) and Guangdong Sanmao Railway Company Limited(“GSRC”). GRCL and GSRC are subsidiaries of Guangzhou Railway Group which operate freight service business (the “Acquisition"). The purchase considerations payable to Guangzhou Railway Group, GRCL and GSRC were approximately RMB28,657,000, RMB453,658,000 and RMB249,677,000, respectively. On 26 October 2016, the Company obtain control over above mentioned railway service businesses and the directors of the Company determined that it was the completion date of the Acquisition. The results of the operations of the above-mentioned entities have been included in the Group’s consolidated comprehensive income statement from 26 October 2016 onwards accordingly. The following table summarizes the consideration paid for Guangzhou Railway Group, GRCL and GSRC, the fair value of identifiable assets acquired and liabilities assumed at the date of the Acquisition: Guangzhou Railway Group GRCL CSRC Total RMB’000 RMB’000 RMB’000 RMB’000 Amount payables arising from the Acquisition(a) 28,657 453,658 249,677 731,992 Less : Employee benefits obligation undertaken - (9,024) (15,703) (24,727) Total consideration(a) 28,657 444,634 233,974 707,265 37 BUSINESS COMBINATIONS(CONTINUED) (a) The total consideration of approximately RMB707,265,000 had been offset against the trade receivables due from Guangzhou Railway Group, GRCL and GSRC to the Group. Therefore, no actual cash outflow occurred in the business acquisition. As at the completion date of the Acquisition, the fair value of the identifiable assets and liabilities acquired were as below: Inventories 23,110 Fixed assets (Note 6) 648,890 Construction-in-progress (Note 7) 59,992 Other liabilities (24,727) Total identifiable 707,265 Total consideration 707,265 Goodwill - The directors of the Company made reference to the valuation report performed by an independent valuer on the acquired businesses when they determined the fair value of the identifiable assets and the liabilities acquired. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [abstract] | |
Disclosure of transactions between related parties | 17 38 RELATED PARTY TRANSACTIONS Parties are considered to be related if one party 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. (a) Related parties that control the Company or are controlled by the Company: See Note 10 for the principal subsidiaries. None of the shareholders is the controlling entity of the Company. (b) Nature of the principal related parties that do not control/are not controlled by the Company: (i) Guangzhou Railway Group and its subsidiaries Name of related parties Relationship with the Company Single largest shareholder and its subsidiaries Guangzhou Railway Group Single largest shareholder Guangzhou Railway Group YangCheng Railway Enterprise Development Company Subsidiary of the single largest shareholder GRCL Subsidiary of the single largest shareholder GEDC Subsidiary of the single largest shareholder Guangzhou Railway Material Supply Company Subsidiary of the single largest shareholder Yuehai Railway Company Limited Subsidiary of the single largest shareholder Shichang Railway Company Limited Subsidiary of the single largest shareholder Guangzhou Railway Station Service Centre Subsidiary of the single largest shareholder Changsha Railway Construction Company Limited Subsidiary of the single largest shareholder Guangdong Sanmao Enterprise Development Company Limited Subsidiary of the single largest shareholder Guangzhou Yuetie Operational Development Company Subsidiary of the single largest shareholder 3 8 RELATED PARTY TRANSACTIONS (CONTINUED) (b) Nature of the principal related parties that do not control/are not controlled by the Company (continued): (i) Guangzhou Railway Group and its subsidiaries (continued): Name of related parties Relationship with the Company Guangzhou Railway Rolling Stock Works Subsidiary of the single largest shareholder Foreign Economic & Trade Development Corporation of Guangzhou Railway Group Subsidiary of the single largest shareholder Guangdong Tieqing International Travel Agency Company Limited Subsidiary of the single largest shareholder Huaihua Railway Engineer Construction Company Subsidiary of the single largest shareholder Xiashen Railway Guangdong Company Limited Subsidiary of the single largest shareholder Ganshao Railway Company Limited Subsidiary of the single largest shareholder Hunan Changtie Industrial Development Co. Ltd. Subsidiary of the single largest shareholder Guangzhou Railway Real Estate Construction Company Subsidiary of the single largest shareholder Guangzhou Beiyang Information Technology Company Limited Subsidiary of the single largest shareholder Guangdong Sanmao Railway Capital Construction Company Subsidiary of the single largest shareholder Associates of the Group Tiecheng Associate of the Group Shentu Associate of the Group (ii) Relationship with CRC and other railway companies On 14 March 2013, pursuant to the Approval, the previous controlling entity of Guangzhou Railway Group, MOR, had been dismantled. The administrative function of MOR were transferred to the Ministry of Transport and the newly established National Railway Bureau, and its business functions were transferred to the CRC. Accordingly, the equity interests of Guangzhou Railway Group which was wholly controlled by MOR previously were transferred to the CRC (“Reform”). The Reform was completed since 1 January 2017 and the Company disclosed details of transactions undertaken with CRC Group for both years of 2017 and 2016 for reference. Unless otherwise specified, the transactions with CRC Group disclosed below have excluded transactions undertaken with Guangzhou Railway Group and its subsidiaries. 38 RELATED PARTY TRANSACTIONS (CONTINUED) (c) In addition to those disclosed elsewhere in the financial statements, during the year, the Group had the following material transactions undertaken with related parties: (I) Material transactions undertaken with Guangzhou Railway Group and its subsidiaries: 201 5 2016 2017 RMB’000 RMB’000 RMB’000 Provision of services and sales of goods Transportation related services Provision of train transportation services to Guangzhou Railway Group and its subsidiaries (i) 751,956 1,425,538 1,505,348 Revenue collected by CRC for railway network usage and related services provided to Guangzhou Railway Group and its subsidiaries (ii) 1,180,852 1,400,876 1,428,752 Revenue from railway operation service provided to Guangzhou Railway Group’s subsidiaries (iii) 550,168 579,253 660,847 2,482,976 3,405,667 3,594,947 Other services Sales of materials and supplies to Guangzhou Railway Group and its subsidiaries (iv) 25,940 29,449 23,386 Services received and purchase made Transportation related services Provision of train transportation services by Guangzhou Railway Group and its subsidiaries (i) 888,903 989,778 1,048,524 Cost settled by CRC for railway network usage and related services provided by Guangzhou Railway Group and its subsidiaries (ii) 1,406,962 1,628,336 1,720,849 Operating lease rental paid to Guangzhou Railway Group for the leasing of land use rights (Note 3 6 (b)) 55,090 55,090 57,358 2,350,955 2,673,204 2,826,731 Other services Social services (employee housing and public security services and other ancillary services) provided by GEDC and Yangcheng Railway (iii) 16,080 11,297 - Provision of repair and maintenance services by Guangzhou Railway Group and its subsidiaries (iv) 489,038 306,988 298,040 Purchase of materials and supplies from Guangzhou Railway Group and its subsidiaries (v) 384,262 469,273 455,716 Provision of construction services by Guangzhou Railway Group and its subsidiaries (vi) 226,089 347,409 272,390 1,115,469 1,134,967 1,026,146 38 RELATED PARTY TRANSACTIONS (CONTINUED) (c) In addition to those disclosed elsewhere in the financial statements, during the year, the Group had the following material transactions undertaken with related parties (continued): (I) Material transactions undertaken with Guangzhou Railway Group and its subsidiaries: (i) The service charges are determined based on a pricing scheme set by the CRC or based on negotiation between the contracting parties with reference to actual costs incurred. (ii) Such revenues/charges are determined by the CRC based on its standard charges applied on a nationwide basis. (iii) The service charges are levied based on contract prices determined based on a "cost plus a profit margin" and agreed between both contract ing parties. (iv) The prices are determined based on mutual negotiation between the contracting parties with reference to actual costs incurred. (v) The prices are determined based on mutual negotiation between the contracting parties with reference to procurement costs incurred plus a management fee ranged from 0.3% to 5% on the costs. (vi) Based on construction amount determined under national railway engineering guidelines. (II) Material transactions with CRC and other railway companies The Group work in cooperation with the CRC and other railway companies owned and controlled by CRC for the operations of certain long distance passenger train and freight transportation businesses within the PRC. The revenues generated therefrom are collected and settled by the CRC according to its central recording and settlement systems (see details in Note 2.24). The charges for the use of the rail lines and services provided by other railway companies are also instructed by the CRC and settled by the CRC based on its systems. Since March 2013, the collection, processing and distribution functions of revenues which were executed by MOR previously have been transferred to CRC. As at 31 December 2017, the cooperation mode and pricing model had not been subject to any material changes . 38 RELATED PARTY TRANSACTIONS (CONTINUED) (c) In addition to those disclosed elsewhere in the financial statements, during the year, the Group had the following material transactions undertaken with related parties (continued): (II) Material transactions with CRC and other railway companies (continued): In addition to those disclosed elsewhere in the financial statements, during the year, the Group had the following material transactions undertaken with the CRC Group: 2015 2016 2017 RMB’000 RMB’000 RMB’000 Provision of s ervices and sales of goods Transportation related services Provision of train transportation services to CRC Group (i) 36,515 29,794 81,396 Revenue collected by CRC for services provided to CRC Group (ii) 1,752,666 1,777,640 1,877,719 Revenue from railway operation service provided to CRC Group (iii) 1,421,995 1,628,143 1,800,692 3,211,176 3,435,577 3,759,807 Other services Provision of repairing services for cargo trucks to CRC Group (ii) 284,348 323,993 333,917 Sales of materials and supplies to CRC Group (iv) 38,395 7,073 7,185 Provision of apartment leasing services to CRC Group (iv) 762 641 722 323,505 331,707 341,824 Services received and purchases made Transportation related services Provision of train transportation services by CRC Group (i) 277,138 292,754 306,208 Cost settled by CRC for services provided by CRC Group (ii) 1,365,352 1,376,047 1,395,591 1,642,490 1,668,801 1,701,799 Other services Provision of repair and maintenance services by CRC Group (iv) 2,813 42,954 31,089 Purchase of materials and supplies from CRC Group (v) 33,591 15,220 19,258 Provision of construction services by CRC Group (vi) 13,538 4,385 - 49,942 62,559 50,347 (i) The service charges are determined based on a pricing scheme set by the CRC or based on negotiation between the contracting parties with reference to actual costs incurred . (ii) Such revenue/charges are determined by the CRC based on its standard charges applied on a nationwide basis. 3 8 (c) In addition to those disclosed elsewhere in the financial statements, during the year, the Group had the following material transactions undertaken with related parties (continued): (II) Material transactions with CRC and other railway companies (continued): In addition to those disclosed elsewhere in the financial statements, during the year, the Group had the following material transactions undertaken with the CRC Group (continued): (iii) The service charges are levied based on contract prices determined based on a “cost plus a profit margin” and explicitly agreed between both contracting parties. (iv) The prices are determined based on mutual negotiation between the contracting parties with reference to actual costs incurred. (v) The prices are determined based on mutual negotiation between the contracting parties with reference to procurement costs incurred plus a management fee range d from 0.3% to 5% on the costs . (vi) Based on construction amounts determined under national railway engineering guidelines . (III) Revenues collected and settled through the CRC: 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 - Passenger transportation 6,642,129 6,960,491 7,295,985 - Freight transportation 1,022,025 1,105,061 1,266,122 - Other transportation related services 86,199 86,883 112,267 7,750,353 8,152,435 8,674,374 38 RELATED PARTY TRANSACTIONS (CONTINUED) (d) As at 31 December 201 6 and 2017 , the Group had the following material balances maintained with related parties: (I) Material balances with Guangzhou Railway Group and its subsidiaries: 2016 2017 RMB’000 RMB’000 Trade receivables 730,061 1,435,421 - Guangzhou Railway Group (i) 229,056 132,830 - Subsidiaries of Guangzhou Railway Group (i) 501,005 1,302,591 Prepayments and other receivables 25,961 44,329 - Guangzhou Railway Group 691 3,277 - Subsidiaries of Guangzhou Railway Group 25,270 41,052 Prepayments for fixed assets and construction-in-progress 225 4,352 - Guangzhou Railway Group - - - Subsidiaries of Guangzhou Railway Group (ii) 225 4,352 Trade payables 533,051 681,587 - Guangzhou Railway Group (i) 61,486 61,899 - Subsidiaries of Guangzhou Railway Group (ii) 432,712 619,509 - Associates 38,853 179 Payables for fixed assets and construction-in-progress 249,308 342,519 - Guangzhou Railway Group 10,805 53,821 - Subsidiaries of Guangzhou Railway Group 168,038 220,377 - Associates 70,465 68,321 Accruals and other payables 430,331 439,509 - Guangzhou Railway Group 5,663 7,390 - Subsidiaries of Guangzhou Railway Group (iii) 422,877 430,041 - Associates (iv) 1,791 2,078 38 RELATED PARTY TRANSACTIONS (CONTINUED) (e) As at 31 December 201 6 and 2017 , the Group had the following material balances maintained with related parties (continued): (I) Material balances with Guangzhou Railway Group and its subsidiaries: (i) The trade balances due from/to Guangzhou Railway Group, subsidiaries of Guangzhou Railway Group mainly represent service fees and charges payable and receivable balances arising from the provision of passenger transportation and cargo forwarding businesses jointly with these related parties within the PRC. (ii) The trade payables due to subsidiaries of Guangzhou Railway Group mainly represent payables arising from unsettled fees for purchase of materials and provision of other services according to various service agreements entered into between the Group and the related parties. (iii) The other payables due to subsidiaries of Guangzhou Railway Group mainly represent the performance deposits received for construction projects and deposits received from ticketing agencies. (iv) The other payables due to associates mainly represent the performance deposits received for construction projects operated by associates. As at 31 December 2016 and 201 7 , all the balances maintained with related parties were unsecured, non-interest bearing and were repayable on demand. (II) Material balances with CRC Group: As at 31 December 2016 2017 RMB’000 RMB’000 Due from CRC Group - Trade receivables 1,443,272 1,372,631 - Other receivables 4,672 1,207 Due to CRC Group - Trade payables and payables for fixed assets and construction-in-progress 65,496 62,620 - Other payables 15,901 6,413 As at 31 December 2017, all the balances maintained with CRC Group were unsecured, non-interest bearing and were repayable on demand. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS [abstract] | |
Disclosure of events after reporting period | 17 39 SUBSEQUENT EVENTS (a) At the meeting of the directors held on 28 March 2018, the directors proposed a final dividend of RMB0.08 per ordinary share for the year ended 31 December 2017, which is subject to the approval by the shareholders in general meeting(Note 33) . This proposed dividend was not reflected as a dividend payable in the Group’s and the Company’s financial statements as at 31 December 2017. (b) On 27 December 2017, the directors of the Company proposed to hand over the land use rights of certain land parcels owned by the Company for resumption in accordance with laws in response to the urban renewal demand in Guangzhou City. On 19 April 2018, the Company entered into the Resumption Compensation Agreement with the Guangzhou Land Development Center (“GLDC” or the “Purchaser”) and other vendors, pursuant to which the Purchaser agreed to resume the land use rights over the land with an initial total compensation of RMB 6.00 billion (subject to adjustments), of which the initial compensation amount payable to the Company will be approximately RMB 1.30 billion (subject to adjustments). GLDC is a public institution under the Guangzhou Land Resources and Planning Commission, which is responsible for the administration of government land reserve. The transaction is subject to the certain conditions, including the approval from the shareholders at the general meeting of the Company, and such conditions may or may not be fulfilled. If the conditions required for the completion of the transaction are not fulfilled, the transaction may not proceed. |
PRINCIPAL ACCOUNTING POLICIES (
PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
PRINCIPAL ACCOUNTING POLICIES [abstract] | |
Basis of preparation | 2.1 2.1 Basis of preparation The consolidated financial statements have been prepared in accordance with all applicable International Financial Reporting Standards ("IFRS") as issued by International Accounting Standards Board ("IASB"). The consolidated financial statements have been prepared under the historical cost convention except for certain available-for-sale investments. 2 principal accounting policies (CONTINUED) 2.1 Basis of preparation (continued) The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4. 2.1.1 Changes in accounting policy and disclosures (a) New and amended standards adopted by the Group The following amendments to standards have been adopted by the Group for the first time for the financial year beginning on 1 January 2017: · Income taxes- Amendments to IAS 12; · Statement of cash flows- Amendments to IAS 7; and · Disclosure of interest in other entities- Amendment to IFRS 12 The directors of the Company consider that the adoption of these amendments did not have any impact on the amounts recognised in prior periods. Most of the amendments will also not affect the current or future periods. (b) The following new standards, amendments and interpretations have been issued as at 31 December 2017 but are not effective for the financial statements for the year ended 31 December 2017: Title of standard Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions Nature of change The amendments relate to the following areas: (1) the accounting for the effects of vesting conditions on cash - settled share - based payment transactions; (2) the classification of share-based payment transactions with net settlement features for withholding tax obligations; (3) the accounting for a modification to the terms and conditions of a share - based payment that changes the transaction from cash - settled to equity - settled. Impact Management has assessed the effects of applying the new standard on the Group’s financial statements. Given there were no share based payment transactions undertaken by the Company and the Group, no significant impact has been identified. Date of adoption by Group These amendments will be effective for annual periods beginning on or after 1 January 2018. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (continued) 2.1.1 Changes in accounting policy and disclosures (continued) (b) The following new standards, amendments and interpretations have been issued as at 31 December 2017 but are not effective for the financial statements for the year ended 31 December 2017 (continued): Title of standard IFRS 9 Financial Instruments Nature of change IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. Impact The Group has reviewed its financial assets and liabilities and is expecting the following impact from the adoption of the new standard on 1 January 2018: (i) The majority of the Group’s equity instruments that were currently classified as available-for-sale investments as at 31 December 2017 will satisfy the conditions for classification as at fair value through other comprehensive income (FVOCI) and hence there will be no significant change to the accounting for these assets. The other financial assets held by the Group which include loans and receivables, will meet the conditions for classification as financial instruments recorded at amortised cost under IFRS9. Accordingly, the Group does not expect the new provision of the new standard would affect the classification and measurement of these financial assets. However, gains or losses realised on the sale of financial assets at FVOCI will no longer be transferred to profit or loss upon sales of the instruments, but instead be reclassified from the FVOCI reserve to retained earnings. (ii) There will be no impact on the Group’s accounting for financial liabilities, as the new requirements only affect the accounting of financial liabilities that are designated at fair value through profit or loss and the Group does not have any such liabilities. (iii) The new impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses as is the case under IAS 39 Financial Instruments: Recognition and Measurement. It applies to financial assets classified at amortised cost, debt instruments measured at FVOCI, contract assets under IFRS 15 Revenue from Contracts with Customers, lease receivables, loan commitments and certain financial guarantee contracts. Based on the assessments undertaken to date, the Group expects an increase in the provision for impairment by approximately 1% of debt balances. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (continued) 2.1.1 Changes in accounting policy and disclosures (continued) (b) The following new standards, amendments and interpretations have been issued as at 31 December 2017 but are not effective for IFRS financial statements for the year ended 31 December 2017 (continued): Title of standard IFRS 9 Financial Instruments Impact The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the Group’s disclosures about its financial instruments particularly in the year of adoption of the new standard. Date of adoption by Group Must be applied for financial years commencing on or after 1 January 2018. The Group will apply the new rules using modified retrospective method from 1 January 2018, with the practical expedients permitted under the standard. Comparatives for 2017 will not be restated. Title of standard IFRS 15 Revenue from Contracts with Customers Nature of change The IASB has issued a new standard for the recognition of revenue. This will replace IAS 18 which covers contracts for goods and services and IAS 11 which covers construction contracts. The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer. The standard permits either a full retrospective or a modified retrospective approach for the adoption. Impact Management has assessed the effects of applying the new standard on the group’s financial statements. Given the nature and mode of provision of services, revenue transactions are expected not to trigger significant differences in the accounting treatments under the requirements of the new standards, no significant impact has been identified. Date of adoption by group Mandatory for financial years commencing on or after 1 January 2018. The group intends to adopt the standard using the modified retrospective approach which means that the cumulative impact of the adoption will be recognised in retained earnings as of 1 January 2018 and that comparatives will not be restated. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (continued) 2.1.1 Changes in accounting policy and disclosures (continued) (b) The following new standards, amendments and interpretations have been issued as at 31 December 2017 but are not effective for IFRS financial statements for the year ended 31 December 2017 (continued): Title of standard IFRS 16 Leases Nature of change IFRS16 was issued in January 2016. It will result in almost all leases being recognised on the balance sheet, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases. The accounting for lessors will not significantly change. Impact The standard will affect primarily the accounting for the Group’s operating leases. Management is currently assessing the impact of applying the new standard on the Group’s financial statements. Date of adoption by group Mandatory for financial years commencing on or after 1 January 2019. At this stage, the Group does not intend to adopt the standard before its effective date. The Group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. Title of standard Amendments to IFRS 10 and IAS 28 Sale or contribution of assets between an investor and its associate or joint venture Nature of change The amendments address an inconsistency between IFRS 10 and IAS 28 in the sale and contribution of assets between an investor and its associate or joint venture. A full gain or loss is recognised when a transaction involves a business. A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if those assets are within a subsidiary. Impact Management has assessed the effects of applying the new standard on the Group’s financial statements and no significant impact has been identified. Date of adoption by Group The effective date of these amendments is to be determined pending the outcome of the IASB’s research project on equity accounting. |
Subsidiaries | 2.2 2.2 Subsidiaries 2.2.1 Consolidation A subsidiary is an entity (including a structured entity) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. (a) Business combinations The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis. Non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation are measured at either fair value or the present ownership interests’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. All other components of non-controlling interests are measured at their acquisition date fair value, unless another measurement basis is required by IFRS. Acquisition-related costs are expensed as incurred. If the business combination is achieved in stages, the acquirer shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognise the resulting gain or loss, if any, in profit or loss. Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with IAS 39 in profit or loss. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for within equity. The excess of the consideration transferred and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in profit or loss (Note 2.9). Intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.2 Subsidiaries (continued) 2.2.1 Consolidation (continued) (b) Changes in ownership interests in subsidiaries without change of control Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. (c) Disposal of subsidiaries When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities, which means that amounts previously recognised in other comprehensive income are reclassified to profit or loss. |
Associates | 2.3 2.3 Associates An associate is an entity over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition. The Group's investments in associates include goodwill identified on acquisition. Upon the acquisition of the ownership interest in an associate, any difference between the cost of the associate and the Group’s share of the net fair value of the associate’s identifiable assets and liabilities is accounted for as goodwill. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.3 Associates (continued) If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate. The Group’s share of post-acquisition profit or loss is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount within 'share of result of associates' ,included in the consolidated comprehensive income statement. Profits or losses and other comprehensive income resulting from upstream and downstream transactions between the Group and its associates are recognised in the Group’s financial statements only to the extent of unrelated investor’s interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group. In the Company’s balance sheet, investments in associates are accounted for at cost less provision for impairment losses. Cost also includes direct attributable costs of investment. The results of associates are accounted for by the Company on the basis of dividend received and receivable. |
Segment reporting | 2.4 2.4 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the senior executives of the Company that make strategic decisions. |
Foreign currency transaction | 2.5 2.5 Foreign currency transaction (a) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in Renminbi ("RMB"), which is the Company’s functional and the Group’s presentation currency. (b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign exchange gains and losses are presented in the consolidated comprehensive income statement within " Finance (costs)/income-net ". |
Fixed assets | 2.6 2.6 Fixed assets Fixed assets are stated at historical cost less depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items (for the case of fixed assets acquired by the Company from Predecessor during the Restructuring, the revaluated amount in the Restructuring was deemed costs). Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Depreciation is calculated using the straight-line method to allocate the cost amount, after taking into account the estimated residual value of not more than 4% of cost, of each asset over its estimated useful life. The estimated useful lives are as follows: 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.6 Fixed assets (continued) Buildings (a) 20 to 40 years Tracks, bridges and service roads (a) 16 to 100 years Locomotives and rolling stock 20 years Communications and signalling systems 8 to 20 years Other machinery and equipment 4 to 25 years (a) The estimated useful lives of some buildings, tracks, bridges and service roads exceed the initial lease periods of the land use rights from operation lease (details contained in Note 36(b)); and the initial period of certain land use right acquired (Note 2.8), on which these assets are located. The Group will renew the term of land use right upon its expiry in strict compliance with requirements of relevant laws and regulations. There is no substantive impediment for the renewal except for public interests. In addition, based on the provision of the land use right operating lease agreement entered into with Guangzhou Railway Group (Note 36(b)), the Company can renew the lease at its own discretion upon expiry of the operating lease term. Based on the above consideration, the directors of the company consider the current estimated useful lives of those assets to be reasonable. The assets residual values and estimated useful lives are reviewed, and adjusted if appropriate, at the end of each year. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.10). Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within "other losses - net", included in the consolidated comprehensive income statement. |
Construction-in-progress | 2.7 2.7 Construction-in-progress Construction-in-progress represents buildings, tracks, bridges and service roads under construction, and mainly includes the construction related costs for the associated facilities of the existing railway lines of the Group. Construction-in-progress is stated at cost, which includes all expenditures and other direct costs, site restoration costs, prepayments attributable to the construction and interest charges arising from borrowings used to finance the construction during the construction period, less impairment loss. Construction-in-progress is not depreciated until such assets are completed and ready for their intended use. From time to time, certain railway assets of the Group require major modifications and improvements. The carrying amounts are transferred from fixed assets to construction-in-progress. The carrying amounts, including costs of modifications, are transferred back to fixed assets upon completion of the improvement projects. |
Leasehold land payments | 2.8 2.8 Leasehold land payments The Group acquired the right to use certain pieces of land for certain of its rail lines, railway stations and other businesses. The consideration paid for such land represents pre-paid lease payments, which are amortised over the lease terms of 36.5 to 50 years using the straight-line method. |
Goodwill | 2.9 2.9 Goodwill Goodwill represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of identifiable net assets acquired. Goodwill arising from acquisitions of subsidiaries’ business is disclosed separately on the consolidated balance sheet. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units ("CGUs"), or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level. Goodwill impairment reviews are undertaken at least annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. |
Impairment of non-financial assets other than goodwill | 2.10 2.10 Impairment of non-financial assets other than goodwill Assets that subjected to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date. |
Non-current assets held for sale | 2.11 2.11 Non-current assets held for sale Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, financial assets and investment property that are carried at fair value, which are specifically exempt from this requirement. An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of derecognition. Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. |
Financial assets | 2.12 2.12 Financial assets 2.12.1 Classification The Group classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, available-for-sale financial assets and held to maturity investment. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. In current year, the Group held loan and receivables and available-for-sale financial assets. (a) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets except for the amounts that are settled or expected to be settled more than 12 months after the end of the reporting period. These are classified as non-current assets. The Group’s loans and receivables comprise "long-term receivables", "trade and other receivables", "short-term deposits" and "cash and cash equivalents" in the consolidated balance sheet. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.12 Financial assets (continued ) 2.12.1 Classification (continued) (b) Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless the investment matures or management intends to dispose of it within 12 months of the end of the reporting period. 2.12.2 Recognition and measurement Regular way purchases and sales of financial assets are recognised on the trade-date - the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Available-for-sale financial assets are subsequently carried at fair value, except for those investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, which shall be measured at cost. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Loans and receivables are subsequently carried at amortised cost using the effective interest method. Changes in the fair value of monetary and non-monetary securities classified as available-for-sale are recognised in other comprehensive income. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognised in equity are included in profit or loss as "other gain/losses - net". Dividends on available-for-sale equity instruments are recognised in profit or loss when the Group’s right to receive payments is established. The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group established fair value by using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models, making maximum use of market inputs and relying as little as possible on entity-specific inputs. |
Offsetting financial instruments | 2.13 2.13 Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty. |
Impairment of financial assets | 2.14 2.14 Impairment of financial assets (a) Assets carried at amortised cost The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a " loss event " ) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. The criteria that the Group uses to determine that there is objective evidence of an impairment loss: include: · Significant financial difficulty of the issuer or obligor; · A breach of contract, such as a default or delinquency in interest or principal payments; · The Group, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider; · It becomes probable that the borrower will enter bankruptcy or other financial reorganisation; · The disappearance of an active market for that financial asset because of financial difficulties; or · Observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the portfolio, including: (i) adverse changes in the payment status of borrowers in the portfolio; (ii) national or local economic conditions that correlate with defaults on the assets in the portfolio. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.14 Impairment of financial assets (continued) (a) Assets carried at amortised cost (continued) For loans and receivables category, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in profit or loss. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor’s credit rating), the reversal of the previously recognised impairment loss is recognised in profit or loss. (b) Assets classified as available for sale The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired. For equity investments, a significant or prolonged decline in the fair value of the security below its cost is also an evidence that the assets are impaired. If any such evidence exists, the cumulative loss, which is measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss, is removed from equity and recognised in profit or loss. Impairment losses recognised in profit or loss on equity instruments are not reversed through profit or loss. |
Long-term prepaid expenses | 2.15 2.15 Long-term prepaid expenses Long-term prepaid expenses include the various expenditures that have been incurred but should be recognised as expenses over more than one year in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expected beneficial period and are presented at actual expenditure incurred, net of accumulated amortisation. |
Materials and supplies | 2.16 2.16 Materials and supplies Materials and supplies are stated at the lower of cost and net realisable value. Cost is determined using the weighted average method. Materials and supplies are charged as fuel costs and repair and maintenance expenses when consumed, or capitalised to fixed assets when the items are installed with the related fixed assets, whichever is appropriate. The cost of materials and supplies may not be recoverable if they are damaged, become wholly or partially obsolete, or if their selling prices have declined due to various reasons. When such circumstances happen, cost of materials and supplies is written to net realisable value, which is the estimated selling price less applicable variable expenses. |
Trade and other receivables | 2.17 2.17 Trade and other receivables Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection of trade and other receivables is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets. Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. |
Cash and cash equivalents | 2.18 2.18 Cash and cash equivalents Cash and cash equivalents include cash in hand; deposits held at call with banks; and other short-term highly liquid investments with original maturities of three months or less. |
Share capital | 2.19 2.19 Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Trade payables | 2.20 2.20 Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. The Group derecognises financial liability when, and only when, the Group’s obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. |
Current and deferred income tax | 2.21 2.21 Current and deferred income tax The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. (a) Current income tax The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the PRC where the Company’s subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. (b) Deferred income tax Inside basis differences Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Outside basis differences Deferred income tax liabilities are provided on taxable temporary differences arising from investments in subsidiaries, and associates and joint arrangements, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Generally the Group is unable to control the reversal of the temporary difference for associates. Only when there is an agreement in place that gives the Group the ability to control the reversal of the temporary difference in the foreseeable future, deferred tax liability in relation to taxable temporary differences arising from the associate’s undistributed profits is not recognised. Deferred income tax assets are recognised on deductible temporary differences arising from investments in subsidiaries, and associates and joint arrangements only to the extent that it is probable the temporary difference will reverse in the future and there is sufficient taxable profit available against which the temporary difference can be utilised. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.21 Current and deferred income tax(continued) (c) Offsetting Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. |
Employee benefits | 2.22 2.22 Employee benefits (a) Defined contribution plan The Group pays contributions to defined contribution schemes operated by the local government for employee benefits in respect of pension and unemployment. The Group also pays contribution to defined contribution schemes operated by Guangzhou Railway Group for employee supplementary pension benefit. The Group has no further payment obligations once the contributions have been paid. The contributions to the defined contribution schemes are recognised as staff costs when they are due. (b) Termination benefits Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of IAS 37 and involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value. |
Provisions | 2.23 2.23 Provisions Provisions are recognised when: the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. |
Revenue recognition | 2.24 2.24 Revenue recognition Revenue comprises the fair value of the consideration received or receivable for the sales of goods and provision of services in the ordinary course of the Group’s activities. Revenue is shown net of value-added tax, rebates and discounts and after eliminating sales within the Group. The Group recognises revenue when the services are rendered and the amount of revenue can be reliable measured, future economic benefits will probably flow to the entity with reasonably certainty, and specific criteria have been met for each of the Group’s activities as described below. The recognition also involves use of estimates exercised by management based on historical results, takes into consideration the different type of customers, transactions and the specifics of each arrangement. (a) Revenue from railroad and related business The operations of the railway business of the Group form part of the nationwide railway system in the PRC and they are supervised and governed by CRC. The Group renders the passenger transportation and freight transportation services in cooperation with other railway companies and the related service fees and charges are collected either by the Group itself or by other railway companies. In addition, the Group also receives service fees and charges for on behalf of other railway companies. The respective fares and charges of the services, fee sharing basis, and processing of the respective revenue sharing among different railway companies are done centrally by a central clearance system operated by CRC. Revenue from passenger transportation Passenger transportation generally include transportation business of Guangzhou-Shenzhen inter-city express trains, long-distance trains and Guangzhou-Hong Kong city through trains. These services are provided in cooperation with other railway companies in mainland China and Hong Kong, and the corresponding revenue information is captured and processed by CRC through the central clearance system. Revenues are recognized on a monthly basis when the train transportation services are rendered within the month, i.e. upon the passenger tickets with fixed prices and dates of travel, which are non-refundable and non-reschedulable, are sold and the respective trains have reached the prescribed destinations within that particular month; as well as upon approval and notification is made by CRC on a monthly basis (the "CRC Monthly Statement") for transactions completed within that month and when the amounts of revenue can be reliably measured and their collectability is certain. The revenue is presented net of value-added tax but before deduction of any sales handling commissions. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.24 Revenue recognition (continued) (a) Revenue from railroad and related business (continued) Revenue from freight transportation The Group also operates with other railway companies in the PRC for the provision of freight transportation services. Service information and computation of the attributable revenues entitled by the Group are processed by the central clearance system of CRC on a monthly basis. Revenue from outbound and inbound freight transportation with ports of loading and discharge located at railway lines owned and operated by the Group; pass-through transportation with freight trains passing through railway lines owned and operated by the Group; as well as goods loading and discharge services rendered at ports located at railway lines owned by the Group, are recognized, on a monthly basis, when the goods are delivered to the ports of discharge within a month, or when the loading/discharge services are rendered, and when the amounts are approved and notified in the CRC Monthly Statement, upon which the amounts can be reliably measured and collectability is certain. The revenues are presented at the gross amounts of the attributable freight charges computed from the standard freight charges imposed by CRC. Revenue from railway network usage and other transportation related services Revenue from railway network usage and other transportation related services, mainly consist of network usage services (locomotive traction, track usage and electric catenaries service, etc.) and railway operation services and other services, are rendered by the Group together with other railway companies in the PRC. The information relating to network usage service is captured and processed by the central clearance system of CRC. The revenue from network usage services are recognized on a monthly basis, when the services are rendered within that month and revenue can be reliably measured, i.e. upon approval and notification made in the CRC Monthly Statement, for the transactions completed within that month, when the respective revenue amounts can be reliably measured and when collectability is certain. Railway operation services and other services are rendered solely by the Group and they are recognized when the services are rendered and revenue can be reliably measured. All proceeds are collected by the Group directly. The Group records revenues based on the amounts of attributable revenue approved and notified in the CRC Monthly Statement for services undertaken by the Group completed within the specific month, upon then the revenues can be reliably measured and collectability is certain. The respective share of revenues, in excess of amount collected by the Group itself, are credited by CRC to bank accounts maintained by the Group. In the case that the attributable amount is less than the amount collected by the Group, the Group remits the surplus to CRC. 2 PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.24 Revenue recognition (continued) (b) Revenue from other businesses Revenue from other business mainly consist of on-board catering services, leasing, sales of materials, sale of goods and other businesses related to railway transportation. Revenues from on-board catering services are recognised when the related services are rendered. Revenues from sales of materials and supplies and sale of goods are recognised when the respective materials and goods are delivered to customers. Revenue from operating lease arrangements on certain properties and locomotives is recognised on a straight-line basis over the period of the respective leases. |
Interest income | 2.25 2.25 Interest income Interest income is recognised using the effective interest method. When a loan and receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired receivables is recognised using the original effective interest rate. |
Dividend income | 2.26 2.26 Dividend income Dividend income is recognised when the right to receive payment is established. |
Government grants | 2.27 2.27 Government grants Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to fixed assets are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets. |
Operating leases | 2.28 2.28 Operating leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. |
Dividend distribution | 2.29 2.29 Dividend distribution Dividend distribution to the shareholders is recognised as a liability in the Group’s and the C ompany’s financial statements in the period in which the dividends are approved by the shareholders of the Company. |
PRINCIPAL ACCOUNTING POLICIES46
PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PRINCIPAL ACCOUNTING POLICIES [abstract] | |
Schedule of fixed assets depreciation | Buildings (a) 20 to 40 years Tracks, bridges and service roads (a) 16 to 100 years Locomotives and rolling stock 20 years Communications and signalling systems 8 to 20 years Other machinery and equipment 4 to 25 years |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL RISK MANAGEMENT [abstract] | |
Schedule of foreign currency risk | Currency As at 31 December Monetary assets denomination 2016 2017 (RMB’000) (RMB’000) Cash and cash equivalents HKD 115,680 32,650 Cash and cash equivalents USD 96 146 Other receivables HKD 66 67 115,842 32,863 |
Schedule of credit risk by identity of counterparties | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Trade receivables Due from Guangzhou Railway Group and its subsidiaries 721,557 1,261,244 Due from CRC Group (excluding Guangzhou Railway Group and its subsidiaries) 1,314,352 1,106,311 Due from third parties 481,372 431,473 2,517,281 2,799,028 As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Other receivables excluding prepayments Due from Guangzhou Railway Group and its subsidiaries 2,619 9,460 Due from CRC Group (excluding Guangzhou Railway Group and its subsidiaries) 3,846 381 Due from third parties 220,035 194,245 226,500 204,086 Long-term receivable Due from a third party 31,406 31,274 |
Schedule of credit risk | As at December 31, 2016 As at December 31, 2017 RMB’000 RMB’000 Cash at bank and short-term deposits Placed in listed banks in the PRC 1,467,616 1,268,478 |
Schedule of liquidity risk | Less than Between 1 and 2 years Between 2 and 5 years RMB’000 RMB’000 RMB’000 At 31 December 2017 Trade and other payables excluding other tax payables, employee salary and benefits payables and advances 2,356,953 - - Payables for fixed assets and construction-in-progress 2,214,547 - - Dividends payable 12,893 - - At 31 December 2016 Trade and other payables excluding other tax payables, employee salary and benefits payables and advances 2,201,483 - - Payables for fixed assets and construction-in-progress 1,765,185 - - Dividends payable 15,542 - - |
Schedule of fair value estimation | Note Level 1 Level 2 Level 3 Total Available‑for‑sale financial assets 15 - - 280 ,088 280 ,088 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION [abstract] | |
Schedule of segment results | The Railway Transportation Business All other segments Elimination Total 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Segment revenue - Railroad and Business 14,633,738 16,170,309 17,294,901 - - - - - - 14,633,738 16,170,309 17,294,901 - Other Businesses 672,455 663,418 705,423 458,944 487,097 395,661 (39,828) (40,320) (64,563) 1,091,571 1,110,195 1,036,521 Total revenue 15,306,193 16,833,727 18,000,324 458,944 487,097 395,661 (39,828) (40,320) (64,563) 15,725,309 17,280,504 18,331,422 Segment result 1,487,249 1,549,120 1,341,601 (28,549) 3,548 14,519 (6,862) (8,659) (8,988) 1,451,838 1,544,009 1,347,132 Finance costs/(income) - net 4,448 (2,728) 10,011 160 177 159 - - - 4,608 (2,551) 10,170 Share of results of associates, net of tax 2,499 7,223 6,944 - - - - - - 2,499 7,223 6,944 Depreciation of fixed assets 1,404,439 1,511,570 1,655,657 7,303 7,400 6,803 - - - 1,411,742 1,518,970 1,662,460 Amortisation of leasehold land payments 17,949 27,338 34,348 10,464 11,332 11,332 - - - 28,413 38,670 45,680 Amortisation of long-term prepaid expenses 13,842 6,729 3,256 337 239 (88) - - - 14,179 6,968 3,168 Impairment of fixed assets 80,393 - 11,185 - - - - - - 80,393 - 11,185 Impairment of construction-in progress 2,434 5,662 - - - - - - - 2,434 5,662 - Loss arising from business combination - - - 45,073 - - - - - 45,073 - - Provision for/(reversal of) impairment of materials and supplies 64,096 (5,209) 7,844 - - - - - - 64,096 (5,209) 7,844 |
Schedule of reconciliation of segment results | The Railway Transportation Business All other segments Elimination Total 201 5 201 6 201 7 201 5 201 6 201 7 201 5 201 6 201 7 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Segment result 1,487,249 1,549,120 1,341,601 (28,549) 3,548 14,519 (6,862) (8,659) (8,988) 1,451,838 1,544,009 1,347,132 Income tax expense (372,142) (385,840) (328,727) (16,388) (4,469) (6,637) - - - (388,530) (390,309) (335,364) Profit/( l oss) for the year 1,115,107 1,163,280 1,012,874 (44,937) (921) 7,882 (6,862) (8,659) (8,988) 1,063,308 1,153,700 1,011,768 |
Schedule of segment assets and liabilities | The Railway Transportation Business All other segments Elimination Total 201 6 201 7 201 6 201 7 201 6 201 7 201 6 201 7 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Total segment assets 32,483,625 33,621,101 586,519 535,840 (199,886) (162,703) 32,870,258 33,994,238 Total segment assets include: Investment in associates 167,604 174,548 - - - - 167,604 174,548 Additions to non-current assets (other than financial instruments and deferred tax assets) 2,817,557 2,415,143 3,279 1,083 - - 2,820,836 2,416,226 Total segment liabilities 4,398,759 4,908,103 588,128 545,500 (146,684) (116,446) 4,840,203 5,337,157 |
FIXED ASSETS-NET (Tables)
FIXED ASSETS-NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FIXED ASSETS-NET [abstract] | |
Schedule of fixed assets-net | Buildings Tracks, Locomotives Communications Other Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 At 1 January 2016 Cost 6,989,242 15,615,264 7,657,021 1,807,311 6,022,269 38,091,107 Accumulated depreciation (2,336,451) (2,980,811) (3,587,690) (1,341,344) (3,769,890) (14,016,186) Impairment - - - - (1,162) (1,162) Net book amount 4,652,791 12,634,453 4,069,331 465,967 2,251,217 24,073,759 Year ended 31 December 2016 Opening net book amount 4,652,791 12,634,453 4,069,331 465,967 2,251,217 24,073,759 Additions due to business combination - - 565,493 11,859 71,538 648,890 Other additions 6,294 - 446,754 42,182 154,100 649,330 Transfer in from construction-in-progress (Note 7) 485,087 88,128 36,584 77,808 330,106 1,017,713 Transfer out to construction-in-progress for improvements/modifications (Note 7) (4,743) - (189,888) (2,958) (8,797) (206,386) Transfer in from construction-in-progress after repair 10,451 2,088 430,050 6,613 21,833 471,035 Reclassifications (10,141) (94) - 172 10,063 - Reclassified to leasehold land payments - (715,003) - - - (715,003) Disposals (946) (92,586) (42,618) (1,621) (4,565) (142,336) Depreciation charges (293,503) (216,765) (460,387) (107,148) (441,167) (1,518,970) Closing net book amount 4,845,290 11,700,221 4,855,319 492,874 2,384,328 24,278,032 At 31 December 2016 Cost 7,468,977 14,887,093 8,557,841 1,917,478 6,514,493 39,345,882 Accumulated depreciation (2,623,687) (3,186,872) (3,702,522) (1,424,604) (4,129,003) (15,066,688) Impairment - - - - (1,162) (1,162) Net book amount 4,845,290 11,700,221 4,855,319 492,874 2,384,328 24,278,032 Year ended 31 December 2017 Opening net book amount 4,845,290 11,700,221 4,855,319 492,874 2,384,328 24,278,032 Other additions 1,849 - 69,311 13,086 123,436 207,682 Transfer in from construction-in-progress (Note 7) 345,676 179,842 843,489 80,867 203,557 1,653,431 Transfer out to construction-in-progress for improvement/modifications (Note 7) (305,208) - (987,236) (299) (18,903) (1,311,646) Transfer in from construction-in-progress after repair 310,885 - 875,497 299 16,697 1,203,378 Reclassifications 1,342 7,116 25 - (8,483) - Reclassified to leasehold land payments - (403,282) - - - (403,282) Disposals (15,942) (69,516) (234,830) (744) (15,780) (336,812) Depreciation charges (332,581) (216,075) (571,640) (115,870) (426,294) (1,662,460) Impairment charge - - (9,865) - (1,320) (11,185) Closing net book amount 4,851,311 11,198,306 4,840,070 470,213 2,257,238 23,617,138 At 31 December 2017 Cost 7,441,605 14,588,338 7,903,204 1,993,168 6,628,084 38,554,399 Accumulated depreciation (2,590,294) (3,390,032) (3,053,269) (1,522,955) (4,368,375) (14,924,925) Impairment - - (9,865) - (2,471) (12,336) Net book amount 4,851,311 11,198,306 4,840,070 470,213 2,257,238 23,617,138 |
CONSTRUCTION-IN-PROGRESS (Table
CONSTRUCTION-IN-PROGRESS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CONSTRUCTION-IN-PROGRESS [abstract] | |
Schedule of construction-in-progress | 201 6 201 7 RMB’000 RMB’000 At 1 January 569,573 790,308 Additions due to business combination 59,992 - Transfer in from fixed assets for improvement/modifications (Note 6) 206,386 1,311,646 Other additions 1,448,767 2,185,526 Transfer to fixed assets (Note 6) (1,017,713) (1,653,431) Transfer out to fixed assets after improvement/modifications (Note 6) (471,035) (1,203,378) Impairment (5,662) - At 31 December 790,308 1,430,671 |
LEASEHOLD LAND PAYMENTS (Tables
LEASEHOLD LAND PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LEASEHOLD LAND PAYMENTS [abstract] | |
Schedule of lease prepayments | RMB’000 At 1 January 2016 Cost 1,274,082 Accumulated amortisation (325,556) Net book amount 948,526 Year ended 31 December 2016 Opening net book amount 948,526 Transfer from fixed assets (Note 6) 715,003 Amortisation charges (38,670) Closing net book amount 1,624,859 At 31 December 2016 Cost 1,989,085 Accumulated amortisation (364,226) Net book amount 1,624,859 Year ended 31 December 2017 Opening net book amount 1,624,859 Transfer from fixed assets (Note 6) 403,282 Assets classified as held for sale (2,183) Amortisation charges (45,680) Closing net book amount 1,980,278 At 31 December 2017 Cost 2,388,326 Accumulated amortisation (408,048) Net book amount 1,980,278 |
Schedule of maturity analysis of operating lease payments explanatory | 201 6 201 7 RMB’000 RMB’000 Lease of between 10 to 20 years 873,411 1,257,346 Lease of between 20 to 30 years 751,448 722,932 1,624,859 1,980,278 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL [abstract] | |
Schedule of goodwill | RMB’000 Year ended 31 December 201 6 and 201 7 Opening net book amount 281,255 Additions - Impairment - Closing net book amount 281,255 At 31 December 201 6 and 201 7 Cost 281,255 Accumulated impairment - Net book amount 281,255 |
Schedule of key assumptions used for value-in-use calculations | Railroad business 201 6 201 7 Gross margin 18.92% 17.76% Growth rate 2 .00 % 2.00% Discount rate 12.44% 12.44% |
SUBSIDIARIES (Tables)
SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SUBSIDIARIES [abstract] | |
Schedule of subsidiaries | Name of the entity Place of incorporation and nature of legal entity Principal activities and place of operation Proportion of equity interests held by the Company (%) Proportion of equity interests held by the Group (%) Proportion of equity interests held by non-controlling interests (%) Dongguan Changsheng Enterprise Company Limited China, limited liability company Warehousing in the PRC 51% 51% 49% Shenzhen Fu Yuan Enterprise Development Company Limited China, limited liability company Hotel management in the PRC 100% 100% - Shenzhen Pinghu Qun Yi Railway Store Loading and Unloading Company Limited China, limited liability company Cargo loading and unloading, warehousing, freight transportation in the PRC 100% 100% - Shenzhen Nantie Construction Supervision Company Limited China, limited liability company Supervision of construction projects in the PRC 67.46% 76.66% 23.34% Shenzhen Railway Property Management Company Limited China, limited liability company Property management in the PRC - 100% - Shenzhen Shenhuasheng Storage and Transportation Company Limited China, limited liability company Warehousing, freight transport and packing agency services in the PRC 41.50% 100% - Shenzhen Guangshen Railway Economic and Trade Enterprise Company Limited China, limited liability company Catering management in the PRC - 100% - Shenzhen Railway Station Passenger Services Company Limited China, limited liability company Catering services and sales of merchandise in the PRC 100% 100% - Name of the entity Place of incorporation and kind of legal entity Principal activities and place of operation Proportion of equity interests held by the Company (%) Proportion of equity interests held by the Group (%) Proportion of equity interests held by non-controlling interests (%) Guangshen Railway Station Dongqun Trade and Commerce Service Company Limited China, limited liability company Sales of merchandises in the PRC 100% 100% - Guangzhou Railway Huangpu Service Company Limited China, limited liability company Cargo loading and unloading, warehousing, freight transportation in the PRC 100% 100% - Zengcheng Lihua Stock Company Limited (“Zengcheng Lihua” ) ( i ) China, limited liability company Real estate construction, provision of warehousing, cargo uploading and unloading services in the PRC 44.72% 44.72% 55.28% |
INVESTMENTS IN ASSOCIATES (Tabl
INVESTMENTS IN ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS IN ASSOCIATES [abstract] | |
Schedule of investments in associates | 201 6 201 7 RMB’000 RMB’000 Share of net assets 167,604 174,548 Less: provision for impairment - - 167,604 174,548 |
Schedule of movement of investments in associates | 201 6 201 7 RMB’000 RMB’000 Beginning of the year 168,711 167,604 Share of results after tax 7,223 6,944 Dividend (8,330) - End of the year 167,604 174,548 |
Schedule of principal associates | Name of the entity Percentage of equity interest attributable to the Company Paid-in capital Principal activities Guangzhou Tiecheng Enterprise Company Limited (“Tiecheng”) 49% RMB343,050,000 Properties leasing and trading of merchandise Shenzhen Guangzhou Railway Civil Engineering Company (“Shentu”) 49% RMB64,000,000 Construction of railroad properties |
Schedule of summarised balance sheets of associates | Tiecheng Shentu 201 6 201 7 201 6 201 7 RMB’000 RMB’000 RMB’000 RMB’000 Current assets 87,733 105,556 921,761 780,104 Non-current assets 339,409 333,602 7,614 12,151 Total assets 427,142 439,158 929,375 792,255 Current liabilities 210,553 210,546 803,713 664,646 Non-current liabilities 202 - - - Total liabilities 210,755 210,546 803,713 664,646 Equity 216,387 228,612 125,662 127,609 Share of net assets 106,030 112,020 61,574 62,528 Carrying amount of interest in associates 106,030 112,020 61,574 62,528 |
Schedule of summarised comprehensive income statements of associates | Tiecheng Shentu 2015 2016 201 7 2015 2016 201 7 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Revenue 32,955 41,217 44,351 467,911 493,277 506,608 Net profit 4,516 8,800 12,225 583 5,941 1,947 Other comprehensive income - - - - - - Total comprehensive income for the year 4,516 8,800 12,225 583 5,941 1,947 |
Schedule of reconciliation of summarised financial information | Tiecheng Shentu Total 201 6 201 7 201 6 201 7 201 6 201 7 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Opening net assets 207,587 216,387 136,721 125,662 344,308 342,049 P rofit for the year 8,800 12,225 5,941 1,947 14,741 14,172 Dividend - - (17,000) - (17,000) - Closing net assets 216,387 228,612 125,662 127,609 342,049 356,221 Percentage of ownership interest 49% 49% 49% 49% 49% 49% Carrying value 106,030 112,020 61,574 62,528 167,604 174,548 |
DEFERRED TAX ASSETS_(LIABILIT55
DEFERRED TAX ASSETS/(LIABILITIES) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DEFERRED TAX ASSETS/(LIABILITIES) [abstract] | |
Schedule of deferred tax assets and liabilities | 201 6 201 7 RMB’000 RMB’000 Deferred tax assets 98,862 115,716 Less: Offsetting of deferred tax liabilities (18,933) (78,711) Deferred tax assets(net) 79,929 37,005 Deferred tax liabilities (87,816) (145,102) Less: Offsetting of deferred tax assets 18,933 78,711 Deferred tax liabilities(net) (68,883) (66,391) 11,046 (29,386) |
Schedule of maturity analysis for deferred tax assets and liabilities | As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Deferred tax assets: -Deferred tax assets to be recovered after more than 12 months 97,706 114,387 -Deferred tax assets to be recovered within 12 months 1,156 1,329 98,862 115,716 Deferred tax liabilities: -D eferred tax liabilities to be recovered after more than 12 months (83,937) (142,159) -Deferred tax liabilities to be recovered within 12 months (3,879) (2,943) (87,816) (145,102) |
Schedule of movement in deferred tax assets | At 1 January 2016 (Charged)/ At 31 (Charged)/ At 31 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Deferred tax assets: Impairment provision for receivables 7,828 (825) 7,003 (2,230) 4,773 Impairment provision for fixed assets and construction-in-progress 2,739 1,416 4,155 2,793 6,948 Impairment provision for materials and supplies 11,837 (5,843) 5,994 1,126 7,120 Differences in accounting base and tax base of government grants 24,952 768 25,720 (201) 25,519 Differences in accounting base and tax base of employee benefits obligations 35,207 4,448 39,655 992 40,647 Loss on disposal of fixed assets 30,805 (14,520) 16,285 14,424 30,709 Others 50 - 50 (50) - 113,418 (14,556) 98,862 16,854 115,716 |
Schedule of movement in deferred tax liabilities | At 1 January 2016 Charged/ At 31 Charged/ At 31 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Deferred tax liabilities: Differences in accounting base and tax base in recognition of fixed assets 9,607 (1,340) 8,267 (404) 7,863 Differences in accounting base and tax base in recognition of leasehold land payments 71,376 (2,493) 68,883 (2,493) 66,390 Changes in the fair value of available-for-sale financial assets - - - 60,647 60,647 Others 10,562 104 10,666 (464) 10,202 91,545 (3,729) 87,816 57,286 145,102 |
Schedule of tax loss carry-forwards and other temporary difference | As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Tax losses that can be carried forward (Note a) 77,328 82,918 Deductible temporary differences 12,302 12,452 89,630 95,370 |
Schedule of tax loss carry-forwards | As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 2017 15,405 - 2018 14,307 13,499 2019 6,516 6,371 2020 18,478 18,478 2021 22,622 22,325 2022 - 22,245 77,328 82,918 |
LONG-TERM PREPAID EXPENSES (Tab
LONG-TERM PREPAID EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LONG-TERM PREPAID EXPENSES [abstract] | |
Schedule of long-term prepaid expenses | 201 6 201 7 RMB’000 RMB’000 At 1 January Cost 63,770 64,077 Accumulated amortisation (49,285) (56,253) Net book amount 14,485 7,824 Year ended 31 December Opening net book amount 14,485 7,824 Additions 307 28,745 Amortisation (6,968) (3,168) Closing net book amount 7,824 33,401 At 31 December Cost 64,077 92,822 Accumulated amortisation (56,253) (59,421) Net book amount 7,824 33,401 |
FINANCIAL INSTRUMENTS BY CATE57
FINANCIAL INSTRUMENTS BY CATEGORY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS BY CATEGORY [abstract] | |
Schedule of financial assets | Loans and receivables Available- for-sale Total RMB’000 RMB’000 RMB’000 Financial assets as at 31 December 2017 Available-for-sale investments (Note 15) - 296,414 296,414 Long-term receivable (Note 16) 31,274 - 31,274 Trade and other receivables excluding prepayments (Notes 18 and 19) 4,417,317 - 4,417,317 Short-term deposits (Note 20) 108,000 - 108,000 Cash and cash equivalents (Note 20) 1,160,515 - 1,160,515 Total 5,717,106 296,414 6,013,520 Financial assets as at 31 December 2016 Available-for-sale investments (Note 15) - 53,826 53,826 Long-term receivable (Note 16) 31,406 - 31,406 Trade and other receivables excluding prepayments (Notes 18 and 19) 3,665,646 - 3,665,646 Short-term deposits (Note 20) 108,000 - 108,000 Cash and cash equivalents (Note 20) 1,359,656 - 1,359,656 Total 5,164,708 53,826 5,218,534 |
Schedule of financial liabilities | Financial liabilities as at 31 December 2017 Other Financial liabilities Trade and other payables excluding other tax payables, employee salary and benefits payables and advances (Notes 25 and 26) 2,356,953 Payables for fixed assets and construction-in-progress 2,214,547 Dividends payable 12,893 Total 4,584,393 Financial liabilities as at 31 December 2016 Trade and other payables excluding other tax payables, employee salary and benefits payables and advances (Notes 25 and 26) 2,201,483 Payables for fixed assets and construction-in-progress 1,765,185 Dividends payable 15,542 Total 3,982,210 |
AVAILABLE-FOR-SALE INVESTMENTS
AVAILABLE-FOR-SALE INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
AVAILABLE-FOR-SALE INVESTMENTS [abstract] | |
Schedule of available-for-sale investments | 201 6 201 7 RMB’000 RMB’000 Investments in unlisted companies 53,826 296,414 |
Schedule of available for sale investments changes in level three items | RMB’000 Closing balance 31 December 2016 - Transfer from cost 37,500 Fair value changes recognised in other comprehensive income 242,588 Closing balance 31 December 2017 280,088 |
MATERIALS AND SUPPLIES (Tables)
MATERIALS AND SUPPLIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
MATERIALS AND SUPPLIES [abstract] | |
Schedule of materials and supplies | As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Raw materials 184,520 185,639 Reusable rail-line track materials 79,311 76,017 Accessories 67,236 67,493 Retailing consumables 1,540 1,578 332,607 330,727 |
TRADE RECEIVABLES (Tables)
TRADE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TRADE RECEIVABLES [abstract] | |
Schedule of trade receivables | As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Trade receivables 3,369,331 4,148,413 Including: receivables from related parties 730,061 2,808,052 Less: Provision for impairment of receivables (4,965) (6,203) 3,364,366 4,142,210 |
Schedule of aging analysis of the outstanding trade receivables | As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Within 1 year (Note 3.1(b)) 2,517,281 2,799,028 Over 1 year but within 2 years 588,640 763,812 Over 2 years but within 3 years 223,675 522,122 Over 3 years 39,735 63,451 3,369,331 4,148,413 |
Schedule of aging analysis of past due but not impaired trade receivables | As at 31 December 201 6 As at 31 December 201 7 RMB’000 RMB’000 Over 1 year but within 2 years 588,640 758,141 Over 2 years but within 3 years 223,675 522,122 Over 3 years but within 5 years 34,770 62,919 847,085 1,343,182 |
Schedule of aging analysis of impaired trade receivables | 201 6 201 7 RMB’000 RMB’000 Over 1 year but within 2 years - 5,671 Over 5 years 4,965 532 4,965 6,203 |
Schedule of movements on provision for impairment of trade receivables | 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 At 1 January 7,003 8,395 4,965 Provision for impairment loss 3,305 6 5,904 Reversal (127) - - Written-off (1,786) (3,436) (4,666) At 31 December 8,395 4,965 6,203 |
PREPAYMENTS AND OTHER RECEIVA61
PREPAYMENTS AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PREPAYMENTS AND OTHER RECEIVABLES [abstract] | |
Schedule of prepayments and other receivables amount due by customer type | As at 31 December 201 6 As at 31 December 2017 RMB’000 RMB’000 Due from third parties 304,530 268,715 Due from related parties 25,961 45,536 330,491 314,251 |
Schedule of prepayments and other receivables | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Other receivables 314,616 288,432 Less: Provision for impairment loss (13,336) (13,325) Other receivables, net (Note (a)) 301,280 275,107 Prepayments (Note (b)) 29,211 39,144 330,491 314,251 |
Schedule of movements on provisions for impairment of other receivables | 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 At 1 January 62,060 13,377 13,336 Provision for impairment loss 62 - - Reversal of impairment loss provision (7,699) (1) (3) Written-off (28,734) (40) (8) Elimination arising from business combination (12,312) - - At 31 December 13,377 13,336 13,325 |
Schedule of prepayments and other receivables carrying amount by currency | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 RMB 330,425 314,184 HKD 66 67 330,491 314,251 |
CASH AND CASH EQUIVALENTS AND62
CASH AND CASH EQUIVALENTS AND SHORT-TERM DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CASH AND CASH EQUIVALENTS AND SHORT-TERM DEPOSITS [abstract] | |
Schedule of cash and cash equivalents and short-term deposits | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Cash at bank and on hand 1,007,156 1,108,015 Term deposits with initial term not more than three months 352,500 52,500 Cash and cash equivalents 1,359,656 1,160,515 Term deposits with initial term of over three months (Note) 108,000 108,000 1,467,656 1,268,515 |
Schedule of cash and cash equivalents and short-term deposits denominated by currency | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 RMB 1,351,880 1,235,719 HKD 115,680 32,650 USD 96 146 1,467,656 1,268,515 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE CAPITAL [abstract] | |
Schedule of classes of share capital | As at 31 December 2015 Movement As at 31 December 2016 Movement As at 31 December 2017 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Authorised, issued and fully paid: Listed shares - H shares 1,431,300 - 1,431,300 - 1,431,300 - A shares 5,652,237 - 5,652,237 - 5,652,237 Total 7,083,537 - 7,083,537 - 7,083,537 |
RESERVES (Tables)
RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RESERVES [abstract] | |
Schedule of appropriations to reserves | 2015 2015 2016 2016 2017 2017 Percentage RMB’000 Percentage RMB’000 Percentage RMB’000 Statutory surplus reserve 10% 111,760 10% 117,050 10% 101,982 |
Schedule of movements of special reserve - safety production fund | 2015 2016 2017 RMB’000 RMB’000 RMB’000 Beginning of the year - - - Appropriation for retained earnings 192,860 204,792 227,250 Utili s ation (192,860) (204,792) (227,250) End of the year - - - |
Schedule of movement of other comprehensive income of the Group | 2015 2016 2017 RMB’000 RMB’000 RMB’000 Beginning of the year - - - Addition due to fair value changes on available-for-sale investments - - 242,588 Addition due to deferred liabilities related to fair value changes on available-for-sale investments - - (60,647) End of the year - - 181,941 |
DEFERRED INCOME (Tables)
DEFERRED INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DEFERRED INCOME RELATING TO GOVERNMENT GRANTS [abstract] | |
Schedule of deferred income relating to government grants | 2016 2017 RMB’000 RMB’000 Government grants 106,810 105,754 Others - 37 Total 106,810 105,791 |
EMPLOYEE BENEFITS OBLIGATIONS (
EMPLOYEE BENEFITS OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EMPLOYEE BENEFITS OBLIGATIONS [abstract] | |
Schedule of employee benefits obligations | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Employee benefits obligations(Note 26) 34,043 30,745 Less: current portion included in accruals and other payables (34,043) (30,745) - - |
Schedule of movement of employee benefits obligations | 2016 2017 RMB’000 RMB’000 At 1 January 13,380 34,043 Additions 24,727 - Payments (4,064) (3,298) At 31 December 34,043 30,745 |
TRADE PAYABLES (Tables)
TRADE PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TRADE PAYABLES [abstract] | |
Schedule of trade payables | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Payables to third parties 610,472 614,822 Payables to related parties 533,051 710,255 1,143,523 1,325,077 |
Schedule of aging analysis of trade payables | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Within 1 year 860,315 1,075,298 Over 1 year but within 2 years 258,227 180,294 Over 2 years but within 3 years 7,477 49,359 Over 3 years 17,504 20,126 1,143,523 1,325,077 |
ACCRUALS AND OTHER PAYABLES (Ta
ACCRUALS AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUALS AND OTHER PAYABLES [abstract] | |
Schedule of accruals and other payables | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Due to third parties 1,188,416 1,017,309 Due to related parties 430,331 445,922 1,618,747 1,463,231 |
Schedule of detailed information of accruals and other payables | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Payables to GEDC assumed by business combination with Zengcheng Lihua 368,560 377,703 Advances received from customers 295,088 152,010 Other deposits received 242,104 226,453 Deposits received for construction projects 207,877 203,886 Salary and welfare payables 172,299 178,427 Amount received on behalf of Labour Union 68 ,914 73,463 Other taxes payable 59,357 70,173 Deposits received from ticketing agencies 36,018 34,298 Employee benefits obligations (Note 24) 34,043 30,745 Housing maintenance fund 15,692 15,740 Other payables 118,795 100,333 1,618,747 1,463,231 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EMPLOYEE BENEFITS [abstract] | |
Schedule of employee benefits expense | 201 5 201 6 201 7 R MB ’000 R MB ’000 R MB ’000 Wages and salaries 3,672,234 4,362,506 4,848,830 Provision for medical, housing scheme and other employee benefits (a) 916,965 1,114,918 1,220,708 Contributions to the defined contribution scheme (b) 620,898 741,923 772,682 5,210,097 6,219,347 6,842,220 |
OTHER LOSSES - NET (Tables)
OTHER LOSSES - NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LOSSES - NET [abstract] | |
Schedule of other losses net | 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Loss on disposal of fixed assets - net (49,008) (133,073) (77,026) Interest income from banks 38,145 24,772 18,974 Dividend income on available-for-sale investments 5,884 5,884 6,473 G overnment grants 7,349 9,769 13,272 Impairment of fixed assets(Note 6) (80,393) - (11,185) Loss arising from business combination (45,073) - - Impairment of construction-in-progress(Note 7) (2,434) (5,662) - Income from compensation 1,167 749 295 Impairment of trade receivables (Note 18) - (6) (5,904) Unwinding of interest accrued on long-term receivable - 2,602 2,868 Others 9,736 (13,305) 3,756 (114,627) (108,270) (48,477) |
FINANCE (COSTS)_INCOME - NET (T
FINANCE (COSTS)/INCOME - NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCE (COSTS)/INCOME - NET [abstract] | |
Schedule of finance income (cost) | 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Bank charges (7,387) (3,823) (2,866) Amortisation of interest for employee benefit obligations (Note 2 4 ) (226) - - Net foreign exchange (losses) / gains 3,005 6,374 (7,304) (4,608) 2,551 (10,170) |
INCOME TAX EXPENSE (Tables)
INCOME TAX EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAX EXPENSE [abstract] | |
Schedule of analysis of current year taxation charges | 201 5 2016 2017 RMB’000 RMB’000 RMB’000 Current income tax 416,480 379,482 355,579 Deferred income tax (Note 1 2 ) (27,950) 10,827 (20,215) 388,530 390,309 335,364 |
Schedule of reconciliation of income tax expense | 201 5 2016 2017 RMB’000 RMB’000 RMB’000 Profit before tax 1,451,838 1,544,009 1,347,132 Tax calculated at the statutory rate of 2 5 % (20 16 and 2015 : 25 %) 362,960 386,002 336,783 Effect of income not subject to tax (2,096) (3,277) (3,354) Effect of expenses not deductible for tax purposes 1,920 1,928 663 Effect of undeductible loss arising from business combination 11,268 - - Reversal of deferred tax assets for the impairment loss of investments in associates and other receivable recognized in prior years 10,500 - - Tax losses for which no deferred tax asset was recognised 4,619 5,656 5,561 Over provision of previous year’s income tax - - (3,886) Utilisation of previously unrecognised tax losses (641) - (403) Income tax expense 388,530 390,309 335,364 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE [abstract] | |
Schedule of earnings per share | 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Profit attributable to owners of the Company 1,070,822 1,158,253 1,015,361 Weighted average number of ordinary shares in issue 7,083,537 7,083,537 7,083,537 W eighted average equivalent ADSs 141,670 141,670 141,670 Basic and diluted earnings per share RMB0.15 RMB0.16 RMB0.14 Basic and diluted earnings per equivalent ADS RMB7.56 RMB8.18 RMB7.17 |
DIVIDENDS (Tables)
DIVIDENDS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ifrs DIVIDENDS [abstract] | |
Schedule of dividends | 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Final, proposed, of RMB0. 08 (20 15 and 201 6 : RMB0.08) per ordinary share 566,683 566,683 566,683 |
CASH FLOW GENERATED FROM OPER75
CASH FLOW GENERATED FROM OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CASH FLOW GENERATED FROM OPERATIONS [abstract] | |
Schedule of adjustments for reconciling profit/loss | 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Profit before income tax: 1,451,838 1,544,009 1,347,132 Adjustments for: Depreciation of fixed assets (Note 6) 1,411,742 1,518,970 1,662,460 Impairment of fixed assets (Note 6) 80,393 - 11,185 Impairment of construction-in-progress (Note 7) 2,434 5,662 - Loss arising from business combination 45,073 - - Provision for/ (reversal of) impairment of materials and supplies (Note 17) 64,096 (5,209) 7,844 Amortisation of leasehold land payments (Note 8) 28,413 38,670 45,680 Loss on disposal of fixed assets and costs on repairs 49,008 133,073 321,741 Amortisation of long-term prepaid expenses (Note 13) 14,179 6,968 3,168 Amortisation of interest for employee benefit obligations (Note 2 4 ) 226 - - Share of results of associates , net of tax (Note 1 1 ) (2,499) (7,223) (6,944) Dividend income on available-for-sale investments (Note 29 ) (5,884) (5,884) (6,473) Provision for impairment of receivables (4,459) 5 5,901 Amortisation of deferred income (2,529) (3,258) (3,282) Interest income (5,502) (4,353) (4,647) Operating profit before working capital changes 3,126,529 3,221,430 3,383,765 Increase in trade receivables (553,980) (1,034,064) (419,349) Decrease in materials and supplies 34,843 14,432 6,121 Increase in prepayments and other receivables 83,553 (47,594) (12,975) Decrease in long-term receivable 2,000 2,000 3,000 I ncrease in trade payables (270,151) 34,178 181,554 (Decrease)/increase in accruals and other payables 97,585 22,481 (179,412) Net cash generated from operations 2,520,379 2,212,863 2,962,704 |
Schedule of proceeds from disposal of fixed assets and leasehold land | 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 Net book amount ( Note 6 ) 83,944 142,336 336,812 Receivable arising from disposal of fixed assets (21,627) 20,349 - Payable arising from disposal of fixed assets - - (2,457) Transfer to materials and supplies (5,488) (11,662) (12,087) Loss on disposal of fixed assets and costs on repairs (49,008) (133,073) (321,741) Proceeds from disposal of fixed assets 7,821 17,950 527 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS [abstract] | |
Schedule of commitments | As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 Contracted but not provided for 769,013 1,341,055 Authorised but not contracted for 1,165,237 518,945 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
BUSINESS COMBINATIONS [abstract] | |
Schedule of detailed information about business combinations | Guangzhou Railway Group GRCL CSRC Total RMB’000 RMB’000 RMB’000 RMB’000 Amount payables arising from the Acquisition(a) 28,657 453,658 249,677 731,992 Less : Employee benefits obligation undertaken - (9,024) (15,703) (24,727) Total consideration(a) 28,657 444,634 233,974 707,265 |
Schedule of detailed information about identifiable assets and liabilities acquired | Inventories 23,110 Fixed assets (Note 6) 648,890 Construction-in-progress (Note 7) 59,992 Other liabilities (24,727) Total identifiable 707,265 Total consideration 707,265 Goodwill - |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [abstract] | |
Schedule of related party transactions | 201 5 2016 2017 RMB’000 RMB’000 RMB’000 Provision of services and sales of goods Transportation related services Provision of train transportation services to Guangzhou Railway Group and its subsidiaries (i) 751,956 1,425,538 1,505,348 Revenue collected by CRC for railway network usage and related services provided to Guangzhou Railway Group and its subsidiaries (ii) 1,180,852 1,400,876 1,428,752 Revenue from railway operation service provided to Guangzhou Railway Group’s subsidiaries (iii) 550,168 579,253 660,847 2,482,976 3,405,667 3,594,947 Other services Sales of materials and supplies to Guangzhou Railway Group and its subsidiaries (iv) 25,940 29,449 23,386 Services received and purchase made Transportation related services Provision of train transportation services by Guangzhou Railway Group and its subsidiaries (i) 888,903 989,778 1,048,524 Cost settled by CRC for railway network usage and related services provided by Guangzhou Railway Group and its subsidiaries (ii) 1,406,962 1,628,336 1,720,849 Operating lease rental paid to Guangzhou Railway Group for the leasing of land use rights (Note 3 6 (b)) 55,090 55,090 57,358 2,350,955 2,673,204 2,826,731 Other services Social services (employee housing and public security services and other ancillary services) provided by GEDC and Yangcheng Railway (iii) 16,080 11,297 - Provision of repair and maintenance services by Guangzhou Railway Group and its subsidiaries (iv) 489,038 306,988 298,040 Purchase of materials and supplies from Guangzhou Railway Group and its subsidiaries (v) 384,262 469,273 455,716 Provision of construction services by Guangzhou Railway Group and its subsidiaries (vi) 226,089 347,409 272,390 1,115,469 1,134,967 1,026,146 |
Schedule of material transactions with CRC and other railway companies | 2015 2016 2017 RMB’000 RMB’000 RMB’000 Provision of s ervices and sales of goods Transportation related services Provision of train transportation services to CRC Group (i) 36,515 29,794 81,396 Revenue collected by CRC for services provided to CRC Group (ii) 1,752,666 1,777,640 1,877,719 Revenue from railway operation service provided to CRC Group (iii) 1,421,995 1,628,143 1,800,692 3,211,176 3,435,577 3,759,807 Other services Provision of repairing services for cargo trucks to CRC Group (ii) 284,348 323,993 333,917 Sales of materials and supplies to CRC Group (iv) 38,395 7,073 7,185 Provision of apartment leasing services to CRC Group (iv) 762 641 722 323,505 331,707 341,824 Services received and purchases made Transportation related services Provision of train transportation services by CRC Group (i) 277,138 292,754 306,208 Cost settled by CRC for services provided by CRC Group (ii) 1,365,352 1,376,047 1,395,591 1,642,490 1,668,801 1,701,799 Other services Provision of repair and maintenance services by CRC Group (iv) 2,813 42,954 31,089 Purchase of materials and supplies from CRC Group (v) 33,591 15,220 19,258 Provision of construction services by CRC Group (vi) 13,538 4,385 - 49,942 62,559 50,347 |
Schedule of revenues collected and settled through the CRC | 201 5 201 6 201 7 RMB’000 RMB’000 RMB’000 - Passenger transportation 6,642,129 6,960,491 7,295,985 - Freight transportation 1,022,025 1,105,061 1,266,122 - Other transportation related services 86,199 86,883 112,267 7,750,353 8,152,435 8,674,374 |
Schedule of material balance | 2016 2017 RMB’000 RMB’000 Trade receivables 730,061 1,435,421 - Guangzhou Railway Group (i) 229,056 132,830 - Subsidiaries of Guangzhou Railway Group (i) 501,005 1,302,591 Prepayments and other receivables 25,961 44,329 - Guangzhou Railway Group 691 3,277 - Subsidiaries of Guangzhou Railway Group 25,270 41,052 Prepayments for fixed assets and construction-in-progress 225 4,352 - Guangzhou Railway Group - - - Subsidiaries of Guangzhou Railway Group (ii) 225 4,352 Trade payables 533,051 681,587 - Guangzhou Railway Group (i) 61,486 61,899 - Subsidiaries of Guangzhou Railway Group (ii) 432,712 619,509 - Associates 38,853 179 Payables for fixed assets and construction-in-progress 249,308 342,519 - Guangzhou Railway Group 10,805 53,821 - Subsidiaries of Guangzhou Railway Group 168,038 220,377 - Associates 70,465 68,321 Accruals and other payables 430,331 439,509 - Guangzhou Railway Group 5,663 7,390 - Subsidiaries of Guangzhou Railway Group (iii) 422,877 430,041 - Associates (iv) 1,791 2,078 |
Schedule of material balances with CRC Group | As at 31 December 2016 2017 RMB’000 RMB’000 Due from CRC Group - Trade receivables 1,443,272 1,372,631 - Other receivables 4,672 1,207 Due to CRC Group - Trade payables and payables for fixed assets and construction-in-progress 65,496 62,620 - Other payables 15,901 6,413 |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 1996 | Dec. 31, 2006 | May 31, 1996 | |
Disclosure of subsidiaries [line items] | |||
Number of shares issued | 1,431,300,000 | ||
Cash to finance capital expenditure and working capital requirements | ¥ 4,214,000,000 | ||
H shares [member] | |||
Disclosure of subsidiaries [line items] | |||
Number of shares issued | 217,812,000 | ||
Number of H shares each American Depositary Share represents | 50 | ||
ADS [member] | |||
Disclosure of subsidiaries [line items] | |||
Number of shares issued | 24,269,760 | ||
A shares [member] | |||
Disclosure of subsidiaries [line items] | |||
Number of shares issued | 2,747,987,000 | ||
Guangzhou Railway Group [member] | |||
Disclosure of subsidiaries [line items] | |||
Proportion of equity interest held by the Guangzhou Railway Group | 100.00% | ||
Guangzhou Railway Group [member] | Ordinary shares ("State-owned Domestic Shares") [member] | |||
Disclosure of subsidiaries [line items] | |||
Number of shares issued | 2,904,250,000 |
PRINCIPAL ACCOUNTING POLICIES -
PRINCIPAL ACCOUNTING POLICIES - ASSOCIATES (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [member] | |
Disclosure of associates [line items] | |
Proportion of voting rights held in associate | 20.00% |
Maximum [member] | |
Disclosure of associates [line items] | |
Proportion of voting rights held in associate | 50.00% |
PRINCIPAL ACCOUNTING POLICIES81
PRINCIPAL ACCOUNTING POLICIES - FIXED ASSETS (Details) | 12 Months Ended | |
Dec. 31, 2017 | ||
Maximum [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated residual value rate | 4.00% | |
Buildings (Note a) [member] | Minimum [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful lives | 20 years | [1] |
Buildings (Note a) [member] | Maximum [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful lives | 40 years | [1] |
Tracks, bridges and service roads (Note a) [member] | Minimum [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful lives | 16 years | [1] |
Tracks, bridges and service roads (Note a) [member] | Maximum [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful lives | 100 years | [1] |
Locomotives and rolling stock [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful lives | 20 years | |
Communications and signaling systems [member] | Minimum [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful lives | 8 years | |
Communications and signaling systems [member] | Maximum [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful lives | 20 years | |
Other machinery and equipment [member] | Minimum [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful lives | 4 years | |
Other machinery and equipment [member] | Maximum [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated useful lives | 25 years | |
[1] | (a) The estimated useful lives of some buildings, tracks, bridges and service roads exceed the initial lease periods of the land use rights from operation lease (details contained in Note 36(b)); and the initial period of certain land use right acquired (Note 2.8), on which these assets are located. The Group will renew the term of land use right upon its expiry in strict compliance with requirements of relevant laws and regulations. There is no substantive impediment for the renewal except for public interests. In addition, based on the provision of the land use right operating lease agreement entered into with Guangzhou Railway Group (Note 36(b)), the Company can renew the lease at its own discretion upon expiry of the operating lease term. Based on the above consideration, the directors of the company consider the current estimated useful lives of those assets to be reasonable. The assets residual values and estimated useful lives are reviewed, and adjusted if appropriate, at the end of each year. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.10). Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within "other losses - net", included in the consolidated comprehensive income statement. |
PRINCIPAL ACCOUNTING POLICIES82
PRINCIPAL ACCOUNTING POLICIES - LEASEHOLD LAND PAYMENTS (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Lease terms | 20 years |
Minimum [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Lease terms | 36 years 6 months |
Maximum [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Lease terms | 50 years |
FINANCIAL RISK MANAGEMENT - MAR
FINANCIAL RISK MANAGEMENT - MARKET RISK - FOREIGN CURRENCY RISK (Details) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016USD ($) | [1] | Dec. 31, 2014CNY (¥) | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||
Cash and cash equivalents | ¥ 1,160,515,000 | ¥ 1,359,656,000 | ¥ 2,220,803,000 | $ 178,368 | $ 208,975 | ¥ 1,665,057,000 | |||
Other receivables | [2] | 275,107,000 | 301,280,000 | ||||||
Foreign exchange gains/losses on translation of HKD-denominated cash in banks | (7,304,000) | 6,374,000 | ¥ 3,005,000 | ||||||
Currency risk [member] | |||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||
Foreign currency denominated monetary assets | ¥ 32,863,000 | 115,842,000 | |||||||
Increase (decrease) of exchange rate | 5.00% | ||||||||
Foreign exchange gains/losses on translation of HKD-denominated cash in banks | ¥ 1,232,000 | 4,340,000 | |||||||
Currency risk [member] | HKD | |||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||
Cash and cash equivalents | 32,650,000 | 115,680,000 | |||||||
Other receivables | 67,000 | 66,000 | |||||||
Currency risk [member] | USD | |||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||
Cash and cash equivalents | ¥ 146,000 | ¥ 96,000 | |||||||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. | ||||||||
[2] | (a) Other receivables mainly represent miscellaneous deposits and receivables arising from the course of provision of non-railway transportation services by the Group. As of 31 December 2017, the input VAT with related invoices not been received or verified amounted to RMB122,190,000 (2016: RMB 156,072,000). Movements on the provision for impairment of other receivables are as follows: 2015 2016 2017 RMB’000 RMB’000 RMB’000 At 1 January 62,060 13,377 13,336 Provision for impairment loss 62 - - Reversal of impairment loss provision (7,699) (1) (3) Written-off (28,734) (40) (8) Elimination arising from business combination (12,312) - - At 31 December 13,377 13,336 13,325 |
FINANCIAL RISK MANAGEMENT - M84
FINANCIAL RISK MANAGEMENT - MARKET RISK - INTEREST RATE RISK (Details) - Interest rate risk [member] - CNY (¥) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Average interest rate of deposits held in banks | 1.54% | 1.38% |
Interest bearing debts | ¥ 0 |
FINANCIAL RISK MANAGEMENT - M85
FINANCIAL RISK MANAGEMENT - MARKET RISK - CREDIT RISK (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | |
Disclosure of credit risk exposure [line items] | |||||
Trade receivables | ¥ 4,142,210 | $ 636,646 | ¥ 3,364,366 | ||
Other receivables excluding prepayments | [2] | 275,107 | 301,280 | ||
Long-term receivable | 31,274 | $ 4,806 | 31,406 | ||
Credit risk [member] | |||||
Disclosure of credit risk exposure [line items] | |||||
Trade receivables | 2,799,028 | 2,517,281 | |||
Other receivables excluding prepayments | 204,086 | 226,500 | |||
Cash at bank and short-term deposits placed in listed banks in the PRC | 1,268,478 | 1,467,616 | |||
Credit risk [member] | Financial assets neither past due nor impaired [member] | Third parties [member] | |||||
Disclosure of credit risk exposure [line items] | |||||
Trade receivables | 431,473 | 481,372 | |||
Other receivables excluding prepayments | 194,245 | 220,035 | |||
Long-term receivable | 31,274 | 31,406 | |||
Credit risk [member] | Financial assets neither past due nor impaired [member] | Guangzhou Railway Group and its subsidiaries [member] | |||||
Disclosure of credit risk exposure [line items] | |||||
Trade receivables | 1,261,244 | 721,557 | |||
Other receivables excluding prepayments | 9,460 | 2,619 | |||
Credit risk [member] | Financial assets neither past due nor impaired [member] | CRC Group (excluding Guangzhou Railway Group and its subsidiaries) [member] | |||||
Disclosure of credit risk exposure [line items] | |||||
Trade receivables | 1,106,311 | 1,314,352 | |||
Other receivables excluding prepayments | ¥ 381 | ¥ 3,846 | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. | ||||
[2] | (a) Other receivables mainly represent miscellaneous deposits and receivables arising from the course of provision of non-railway transportation services by the Group. As of 31 December 2017, the input VAT with related invoices not been received or verified amounted to RMB122,190,000 (2016: RMB 156,072,000). Movements on the provision for impairment of other receivables are as follows: 2015 2016 2017 RMB’000 RMB’000 RMB’000 At 1 January 62,060 13,377 13,336 Provision for impairment loss 62 - - Reversal of impairment loss provision (7,699) (1) (3) Written-off (28,734) (40) (8) Elimination arising from business combination (12,312) - - At 31 December 13,377 13,336 13,325 |
FINANCIAL RISK MANAGEMENT - M86
FINANCIAL RISK MANAGEMENT - MARKET RISK - LIQUIDITY RISK (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||||
Payables for fixed assets and construction-in-progress | ¥ 2,214,547 | $ 340,370 | ¥ 1,765,185 | |
Dividends payable | 12,893 | $ 1,982 | 15,542 | |
Liquidity risk [member] | Less than 1 year [member] | ||||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||||
Trade and other payables excluding tax payables, employee salary, benefits payables and advances | 2,356,953 | 2,201,483 | ||
Payables for fixed assets and construction-in-progress | 2,214,547 | 1,765,185 | ||
Dividends payable | ¥ 12,893 | ¥ 15,542 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
FINANCIAL RISK MANAGEMENT - FAI
FINANCIAL RISK MANAGEMENT - FAIR VALUE ESTIMATION (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
Disclosure of fair value of plan assets [line items] | ||||
Financial assets available-for-sale | ¥ 296,414 | $ 45,558 | ¥ 53,826 | |
Level 3 [member] | ||||
Disclosure of fair value of plan assets [line items] | ||||
Financial assets available-for-sale | 280,088 | |||
At fair value [member] | ||||
Disclosure of fair value of plan assets [line items] | ||||
Financial assets available-for-sale | 280,088 | |||
At fair value [member] | Level 3 [member] | ||||
Disclosure of fair value of plan assets [line items] | ||||
Financial assets available-for-sale | ¥ 280,088 | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
SEGMENT INFORMATION - SEGMENT R
SEGMENT INFORMATION - SEGMENT RESULTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Segment revenue | |||||
Total revenue | ¥ 18,331,422 | $ 2,817,488 | ¥ 17,280,504 | ¥ 15,725,309 | |
Segment result | 1,347,132 | 207,050 | 1,544,009 | 1,451,838 | |
Finance costs/(income) - net | 10,170 | 1,563 | (2,551) | 4,608 | |
Share of results of associates, net of tax | 6,944 | 1,067 | 7,223 | 2,499 | |
Depreciation of fixed assets | 1,662,460 | 1,518,970 | 1,411,742 | ||
Amortisation of leasehold land payments | 45,680 | 38,670 | 28,413 | ||
Amortisation of long-term prepaid expenses | 3,168 | 6,968 | 14,179 | ||
Impairment of fixed assets | 11,185 | 80,393 | |||
Impairment of construction-in-progress | 5,662 | 2,434 | |||
Loss arising from business combination | 45,073 | ||||
Provision for/(reversal of) impairment of materials and supplies | 7,844 | (5,209) | 64,096 | ||
Eliminations [member] | |||||
Segment revenue | |||||
Total revenue | (64,563) | (40,320) | (39,828) | ||
Segment result | (8,988) | (8,659) | (6,862) | ||
The Railway Transportation Business [member] | |||||
Segment revenue | |||||
Total revenue | 18,000,324 | 16,833,727 | 15,306,193 | ||
Segment result | 1,341,601 | 1,549,120 | 1,487,249 | ||
Finance costs/(income) - net | 10,011 | (2,728) | 4,448 | ||
Share of results of associates, net of tax | 6,944 | 7,223 | 2,499 | ||
Depreciation of fixed assets | 1,655,657 | 1,511,570 | 1,404,439 | ||
Amortisation of leasehold land payments | 34,348 | 27,338 | 17,949 | ||
Amortisation of long-term prepaid expenses | 3,256 | 6,729 | 13,842 | ||
Impairment of fixed assets | 11,185 | 80,393 | |||
Impairment of construction-in-progress | 0 | 5,662 | 2,434 | ||
Provision for/(reversal of) impairment of materials and supplies | 7,844 | (5,209) | 64,096 | ||
All other segments [member] | |||||
Segment revenue | |||||
Total revenue | 395,661 | 487,097 | 458,944 | ||
Segment result | 14,519 | 3,548 | (28,549) | ||
Finance costs/(income) - net | 159 | 177 | 160 | ||
Share of results of associates, net of tax | 0 | 0 | |||
Depreciation of fixed assets | 6,803 | 7,400 | 7,303 | ||
Amortisation of leasehold land payments | 11,332 | 11,332 | 10,464 | ||
Amortisation of long-term prepaid expenses | (88) | 239 | 337 | ||
Loss arising from business combination | 45,073 | ||||
Railroad Businesses [member] | |||||
Segment revenue | |||||
Total revenue | 17,294,901 | 2,658,178 | 16,170,309 | 14,633,738 | |
Depreciation of fixed assets | 1,632,926 | 250,976 | 1,488,324 | 1,387,534 | |
Amortisation of leasehold land payments | 34,348 | 5,279 | 27,338 | 17,949 | |
Railroad Businesses [member] | The Railway Transportation Business [member] | |||||
Segment revenue | |||||
Total revenue | 17,294,901 | 16,170,309 | 14,633,738 | ||
Other Businesses [member] | |||||
Segment revenue | |||||
Total revenue | 1,036,521 | 159,310 | 1,110,195 | 1,091,571 | |
Depreciation of fixed assets | 29,534 | 4,539 | 30,646 | 24,208 | |
Amortisation of leasehold land payments | 11,332 | $ 1,742 | 11,332 | 10,464 | |
Other Businesses [member] | Eliminations [member] | |||||
Segment revenue | |||||
Total revenue | (64,563) | (40,320) | (39,828) | ||
Other Businesses [member] | The Railway Transportation Business [member] | |||||
Segment revenue | |||||
Total revenue | 705,423 | 663,418 | 672,455 | ||
Other Businesses [member] | All other segments [member] | |||||
Segment revenue | |||||
Total revenue | ¥ 395,661 | ¥ 487,097 | ¥ 458,944 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
SEGMENT INFORMATION - RECONCILI
SEGMENT INFORMATION - RECONCILIATION OF SEGMENT RESULTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Disclosure of reconciliation of segment results [line items] | |||||
Segment result | ¥ 1,347,132 | $ 207,050 | ¥ 1,544,009 | ¥ 1,451,838 | |
Income tax expense | (335,364) | (51,544) | (390,309) | (388,530) | |
Profit for the year | 1,011,768 | $ 155,506 | 1,153,700 | 1,063,308 | |
Eliminations [member] | |||||
Disclosure of reconciliation of segment results [line items] | |||||
Segment result | (8,988) | (8,659) | (6,862) | ||
Profit for the year | (8,988) | (8,659) | (6,862) | ||
The Railway Transportation Business [member] | |||||
Disclosure of reconciliation of segment results [line items] | |||||
Segment result | 1,341,601 | 1,549,120 | 1,487,249 | ||
Income tax expense | (328,727) | (385,840) | (372,142) | ||
Profit for the year | 1,012,874 | 1,163,280 | 1,115,107 | ||
All other segments [member] | |||||
Disclosure of reconciliation of segment results [line items] | |||||
Segment result | 14,519 | 3,548 | (28,549) | ||
Income tax expense | (6,637) | (4,469) | (16,388) | ||
Profit for the year | ¥ 7,882 | ¥ (921) | ¥ (44,937) | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
SEGMENT INFORMATION - SEGMENT A
SEGMENT INFORMATION - SEGMENT ASSETS AND LIABILITIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2015CNY (¥) | |
Disclosure of segment assets and liabilities [line items] | |||||
Total segment assets | ¥ 33,994,238 | ¥ 32,870,258 | $ 5,224,819 | ||
Total segment assets include: | |||||
Investment in associates | 174,548 | 167,604 | 26,828 | ¥ 168,711 | |
Additions to non-current assets (other than financial instruments and deferred tax assets) | 2,416,226 | 2,820,836 | |||
Total segment liabilities | 5,337,157 | 4,840,203 | $ 820,306 | ||
Eliminations [member] | |||||
Disclosure of segment assets and liabilities [line items] | |||||
Total segment assets | (162,703) | (199,886) | |||
Total segment assets include: | |||||
Total segment liabilities | (116,446) | (146,684) | |||
The Railway Transportation Business [member] | |||||
Disclosure of segment assets and liabilities [line items] | |||||
Total segment assets | 33,621,101 | 32,483,625 | |||
Total segment assets include: | |||||
Investment in associates | 174,548 | 167,604 | |||
Additions to non-current assets (other than financial instruments and deferred tax assets) | 2,415,143 | 2,817,557 | |||
Total segment liabilities | 4,908,103 | 4,398,759 | |||
All other segments [member] | |||||
Disclosure of segment assets and liabilities [line items] | |||||
Total segment assets | 535,840 | 586,519 | |||
Total segment assets include: | |||||
Additions to non-current assets (other than financial instruments and deferred tax assets) | 1,083 | 3,279 | |||
Total segment liabilities | ¥ 545,500 | ¥ 588,128 | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
SEGMENT INFORMATION - SEGMENT91
SEGMENT INFORMATION - SEGMENT RESULTS - Narratives (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||
Disclosure of segment revenues [line items] | |||||
Revenue | ¥ 18,331,422,000 | $ 2,817,488 | [1] | ¥ 17,280,504,000 | ¥ 15,725,309,000 |
Revenue derived from a single external customer | ¥ 0 | ||||
Maximum [member] | |||||
Disclosure of segment revenues [line items] | |||||
Percentage of total revenues derived from single external customers | 10.00% | 10.00% | |||
Guangzhou Railway Group [member] | Guangzhou Railway Group's subsidiaries [member] | |||||
Disclosure of segment revenues [line items] | |||||
Revenue | ¥ 3,595,959,000 | ¥ 3,407,998,000 | ¥ 2,508,916,000 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
FIXED ASSETS-NET (Details)
FIXED ASSETS-NET (Details) ¥ in Thousands, $ in Thousands | Oct. 26, 2016CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | ¥ 24,278,032 | ¥ 24,073,759 | ||||
Additions due to business combination | ¥ 648,890 | 648,890 | ||||
Other additions | 207,682 | 649,330 | ||||
Transfer in from construction-in-progress (Note 7) | 1,653,431 | 1,017,713 | ||||
Transfer out to construction-in-progress for improvements/modifications (Note 7) | (1,311,646) | (206,386) | ||||
Transfer in from construction-in-progress after repair | 1,203,378 | 471,035 | ||||
Reclassified to leasehold land payments | (403,282) | (715,003) | ||||
Disposals | (336,812) | (142,336) | ¥ (83,944) | |||
Depreciation charges | (1,662,460) | (1,518,970) | (1,411,742) | |||
Impairment | (11,185) | (80,393) | ||||
Closing net book amount | 23,617,138 | $ 3,629,888 | 24,278,032 | 24,073,759 | ||
Gross carrying amount [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 39,345,882 | 38,091,107 | ||||
Closing net book amount | 38,554,399 | 39,345,882 | 38,091,107 | |||
Accumulated depreciation [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | (15,066,688) | (14,016,186) | ||||
Closing net book amount | (14,924,925) | (15,066,688) | (14,016,186) | |||
Accumulated impairment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | (1,162) | (1,162) | ||||
Closing net book amount | (12,336) | (1,162) | (1,162) | |||
Buildings [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 4,845,290 | 4,652,791 | ||||
Other additions | 1,849 | 6,294 | ||||
Transfer in from construction-in-progress (Note 7) | 345,676 | 485,087 | ||||
Transfer out to construction-in-progress for improvements/modifications (Note 7) | (305,208) | (4,743) | ||||
Transfer in from construction-in-progress after repair | 310,885 | 10,451 | ||||
Reclassifications | 1,342 | (10,141) | ||||
Disposals | (15,942) | (946) | ||||
Depreciation charges | (332,581) | (293,503) | ||||
Closing net book amount | 4,851,311 | 4,845,290 | 4,652,791 | |||
Buildings [member] | Gross carrying amount [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 7,468,977 | 6,989,242 | ||||
Closing net book amount | 7,441,605 | 7,468,977 | 6,989,242 | |||
Buildings [member] | Accumulated depreciation [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | (2,623,687) | (2,336,451) | ||||
Closing net book amount | (2,590,294) | (2,623,687) | (2,336,451) | |||
Tracks, bridges and service roads [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 11,700,221 | 12,634,453 | ||||
Transfer in from construction-in-progress (Note 7) | 179,842 | 88,128 | ||||
Transfer in from construction-in-progress after repair | 2,088 | |||||
Reclassifications | 7,116 | (94) | ||||
Reclassified to leasehold land payments | (403,282) | (715,003) | ||||
Disposals | (69,516) | (92,586) | ||||
Depreciation charges | (216,075) | (216,765) | ||||
Closing net book amount | 11,198,306 | 11,700,221 | 12,634,453 | |||
Tracks, bridges and service roads [member] | Gross carrying amount [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 14,887,093 | 15,615,264 | ||||
Closing net book amount | 14,588,338 | 14,887,093 | 15,615,264 | |||
Tracks, bridges and service roads [member] | Accumulated depreciation [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | (3,186,872) | (2,980,811) | ||||
Closing net book amount | (3,390,032) | (3,186,872) | (2,980,811) | |||
Locomotives and rolling stock [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 4,855,319 | 4,069,331 | ||||
Additions due to business combination | 565,493 | |||||
Other additions | 69,311 | 446,754 | ||||
Transfer in from construction-in-progress (Note 7) | 843,489 | 36,584 | ||||
Transfer out to construction-in-progress for improvements/modifications (Note 7) | (987,236) | (189,888) | ||||
Transfer in from construction-in-progress after repair | 875,497 | 430,050 | ||||
Reclassifications | 25 | |||||
Disposals | (234,830) | (42,618) | ||||
Depreciation charges | (571,640) | (460,387) | ||||
Impairment | (9,865) | |||||
Closing net book amount | 4,840,070 | 4,855,319 | 4,069,331 | |||
Locomotives and rolling stock [member] | Gross carrying amount [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 8,557,841 | 7,657,021 | ||||
Closing net book amount | 7,903,204 | 8,557,841 | 7,657,021 | |||
Locomotives and rolling stock [member] | Accumulated depreciation [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | (3,702,522) | (3,587,690) | ||||
Closing net book amount | (3,053,269) | (3,702,522) | (3,587,690) | |||
Locomotives and rolling stock [member] | Accumulated impairment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Closing net book amount | (9,865) | |||||
Communications and signaling systems [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 492,874 | 465,967 | ||||
Additions due to business combination | 11,859 | |||||
Other additions | 13,086 | 42,182 | ||||
Transfer in from construction-in-progress (Note 7) | 80,867 | 77,808 | ||||
Transfer out to construction-in-progress for improvements/modifications (Note 7) | (299) | (2,958) | ||||
Transfer in from construction-in-progress after repair | 299 | 6,613 | ||||
Reclassifications | 172 | |||||
Disposals | (744) | (1,621) | ||||
Depreciation charges | (115,870) | (107,148) | ||||
Closing net book amount | 470,213 | 492,874 | 465,967 | |||
Communications and signaling systems [member] | Gross carrying amount [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 1,917,478 | 1,807,311 | ||||
Closing net book amount | 1,993,168 | 1,917,478 | 1,807,311 | |||
Communications and signaling systems [member] | Accumulated depreciation [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | (1,424,604) | (1,341,344) | ||||
Closing net book amount | (1,522,955) | (1,424,604) | (1,341,344) | |||
Other machinery and equipment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 2,384,328 | 2,251,217 | ||||
Additions due to business combination | 71,538 | |||||
Other additions | 123,436 | 154,100 | ||||
Transfer in from construction-in-progress (Note 7) | 203,557 | 330,106 | ||||
Transfer out to construction-in-progress for improvements/modifications (Note 7) | (18,903) | (8,797) | ||||
Transfer in from construction-in-progress after repair | 16,697 | 21,833 | ||||
Reclassifications | (8,483) | 10,063 | ||||
Disposals | (15,780) | (4,565) | ||||
Depreciation charges | (426,294) | (441,167) | ||||
Impairment | (1,320) | |||||
Closing net book amount | 2,257,238 | 2,384,328 | 2,251,217 | |||
Other machinery and equipment [member] | Gross carrying amount [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 6,514,493 | 6,022,269 | ||||
Closing net book amount | 6,628,084 | 6,514,493 | 6,022,269 | |||
Other machinery and equipment [member] | Accumulated depreciation [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | (4,129,003) | (3,769,890) | ||||
Closing net book amount | (4,368,375) | (4,129,003) | (3,769,890) | |||
Other machinery and equipment [member] | Accumulated impairment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | (1,162) | (1,162) | ||||
Closing net book amount | ¥ (2,471) | ¥ (1,162) | ¥ (1,162) | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
FIXED ASSETS-NET - Narratives (
FIXED ASSETS-NET - Narratives (Details) - CNY (¥) | Dec. 31, 2017 | Dec. 31, 2016 |
FIXED ASSETS-NET [abstract] | ||
Aggregate carrying value of ownership certificates of certain buildings that had not been obtained, net fixed assets | ¥ 1,858,288,000 | ¥ 1,819,505,000 |
Aggregate net book value of fixed assets that had been fully depreciated but they were still in use | ¥ 155,125,000 | ¥ 116,953,000 |
CONSTRUCTION-IN-PROGRESS (Detai
CONSTRUCTION-IN-PROGRESS (Details) $ in Thousands | Oct. 26, 2016CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | ¥ 24,278,032,000 | ¥ 24,073,759,000 | ||||
Additions due to business combination | ¥ 648,890,000 | 648,890,000 | ||||
Transfer in from fixed assets for improvement/modifications (Note 6) | 1,311,646,000 | 206,386,000 | ||||
Other additions | 207,682,000 | 649,330,000 | ||||
Transfer to fixed assets (Note 6) | (1,653,431,000) | (1,017,713,000) | ||||
Transfer out to fixed assets after improvement/modifications (Note 6) | (1,203,378,000) | (471,035,000) | ||||
Impairment | (11,185,000) | ¥ (80,393,000) | ||||
Closing net book amount | 23,617,138,000 | $ 3,629,888 | 24,278,032,000 | 24,073,759,000 | ||
Interest expense capitalised, construction-in-progress | 0 | 0 | ||||
Construction in progress [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Opening net book amount | 790,308,000 | 569,573,000 | ||||
Additions due to business combination | 59,992,000 | |||||
Transfer in from fixed assets for improvement/modifications (Note 6) | 1,311,646,000 | 206,386,000 | ||||
Other additions | 2,185,526,000 | 1,448,767,000 | ||||
Transfer to fixed assets (Note 6) | (1,653,431,000) | (1,017,713,000) | ||||
Transfer out to fixed assets after improvement/modifications (Note 6) | (1,203,378,000) | (471,035,000) | ||||
Impairment | (5,662,000) | |||||
Closing net book amount | ¥ 1,430,671,000 | ¥ 790,308,000 | ¥ 569,573,000 | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
LEASEHOLD LAND PAYMENTS (Detail
LEASEHOLD LAND PAYMENTS (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Opening net book amount | ¥ 24,278,032,000 | ¥ 24,073,759,000 | |||
Transfer from fixed assets (Note 6) | (403,282,000) | (715,003,000) | |||
Amortisation charges | 1,662,460,000 | 1,518,970,000 | ¥ 1,411,742,000 | ||
Closing net book amount | 23,617,138,000 | $ 3,629,888 | 24,278,032,000 | 24,073,759,000 | |
Gross carrying amount [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Opening net book amount | 39,345,882,000 | 38,091,107,000 | |||
Closing net book amount | 38,554,399,000 | 39,345,882,000 | 38,091,107,000 | ||
Accumulated amortisation [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Opening net book amount | (15,066,688,000) | (14,016,186,000) | |||
Closing net book amount | (14,924,925,000) | (15,066,688,000) | (14,016,186,000) | ||
Leasehold land payments [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Opening net book amount | 1,624,859,000 | 948,526,000 | |||
Transfer from fixed assets (Note 6) | (403,282,000) | (715,003,000) | |||
Assets classified as held for sale | (2,183,000) | ||||
Amortisation charges | (45,680,000) | (38,670,000) | |||
Closing net book amount | 1,980,278,000 | 1,624,859,000 | 948,526,000 | ||
Leasehold land payments [member] | Gross carrying amount [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Opening net book amount | 1,989,085,000 | 1,274,082,000 | |||
Closing net book amount | 2,388,326,000 | 1,989,085,000 | 1,274,082,000 | ||
Leasehold land payments [member] | Accumulated amortisation [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Opening net book amount | (364,226,000) | (325,556,000) | |||
Closing net book amount | ¥ (408,048,000) | ¥ (364,226,000) | ¥ (325,556,000) | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
LEASEHOLD LAND PAYMENTS - LAND
LEASEHOLD LAND PAYMENTS - LAND USE RIGHT CERTIFICATES ANALYSIS - Narratives (Details) $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Aggregate carrying value of land use right certificates | ¥ 1,318,686,000 | ¥ 936,304,000 | |||
Lease of leasehold land | 23,617,138,000 | $ 3,629,888 | 24,278,032,000 | ¥ 24,073,759,000 | |
Leasehold land payments [member] | |||||
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Lease of leasehold land | 1,980,278,000 | 1,624,859,000 | ¥ 948,526,000 | ||
Leasehold land payments [member] | Between 10 to 20 years [member] | |||||
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Lease of leasehold land | 1,257,346,000 | 873,411,000 | |||
Leasehold land payments [member] | Between 20 to 30 years [member] | |||||
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Lease of leasehold land | ¥ 722,932,000 | ¥ 751,448,000 | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
GOODWILL - NET BOOK VALUE ANALY
GOODWILL - NET BOOK VALUE ANALYSIS OF GOODWILL (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | |
Disclosure of reconciliation of changes in goodwill [line items] | ||||
Opening net book amount | ¥ 281,255 | |||
Additions | 0 | ¥ 0 | ||
Impairment | 0 | 0 | ||
Closing net book amount | 281,255 | $ 43,228 | 281,255 | |
Gross carrying amount [member] | ||||
Disclosure of reconciliation of changes in goodwill [line items] | ||||
Opening net book amount | 281,255 | |||
Closing net book amount | ¥ 281,255 | ¥ 281,255 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
GOODWILL - KEY ASSUMPTIONS USED
GOODWILL - KEY ASSUMPTIONS USED FOR VALUE-IN-USE CALCULATIONS (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclouse of goodwill key assumptions used for value-in-use calculation [line items] | ||
Period over which calculations use pre-tax cash flow projections based on financial forecasts prepared by management | 5 year | |
Railroad Businesses [member] | ||
Disclouse of goodwill key assumptions used for value-in-use calculation [line items] | ||
Gross margin | 17.76% | 18.92% |
Growth rate | 2.00% | 2.00% |
Discount rate | 12.44% | 12.44% |
GOODWILL - KEY ASSUMPTIONS US99
GOODWILL - KEY ASSUMPTIONS USED FOR VALUE-IN-USE CALCULATIONS - Narratives (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclouse of goodwill key assumptions used for value-in-use calculation [line items] | ||
Impairment loss recognised against goodwill due to lower budgeted growth rate | ¥ 0 | |
Impairment loss recognised against goodwill due to higher estimated pre-tax discount rate | ¥ 0 | |
Railroad Businesses [member] | ||
Disclouse of goodwill key assumptions used for value-in-use calculation [line items] | ||
Budgeted growth rate used in value-in-use calculation | 2.00% | 2.00% |
Estimated pre-tax discount rate applied to discounted cash flows | 12.44% | 12.44% |
Minimum [member] | Railroad Businesses [member] | ||
Disclouse of goodwill key assumptions used for value-in-use calculation [line items] | ||
Estimated pre-tax discount rate applied to discounted cash flows | 1.00% | |
Maximum [member] | Railroad Businesses [member] | ||
Disclouse of goodwill key assumptions used for value-in-use calculation [line items] | ||
Budgeted growth rate used in value-in-use calculation | 10.00% |
SUBSIDIARIES (Details)
SUBSIDIARIES (Details) | 12 Months Ended | |
Dec. 31, 2017individual | ||
Dongguan Changsheng Enterprise Company Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Company | 51.00% | |
Proportion of equity interests held by the Group | 51.00% | |
Proportion of equity interests held by non-controlling interests | 49.00% | |
Shenzhen Fu Yuan Enterprise Development Company Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Company | 100.00% | |
Proportion of equity interests held by the Group | 100.00% | |
Shenzhen Pinghu Qun Yi Railway Store Loading and Unloading Company Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Company | 100.00% | |
Proportion of equity interests held by the Group | 100.00% | |
Shenzhen Nantie Construction Supervision Company Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Company | 67.46% | |
Proportion of equity interests held by the Group | 76.66% | |
Proportion of equity interests held by non-controlling interests | 23.34% | |
Shenzhen Railway Property Management Company Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Group | 100.00% | |
Shenzhen Shenhuasheng Storage and Transportation Company Limitied [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Company | 41.50% | |
Proportion of equity interests held by the Group | 100.00% | |
Shenzhen Guangshen Railway Economic and Trade Enterprise Company Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Group | 100.00% | |
Shenzhen Railway Station Passenger Services Company Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Company | 100.00% | |
Proportion of equity interests held by the Group | 100.00% | |
Guangshen Railway Station Dongqun Trade and Commerce Service Company Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Company | 100.00% | |
Proportion of equity interests held by the Group | 100.00% | |
Guangzhou Railway Huangpu Service Company Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Company | 100.00% | |
Proportion of equity interests held by the Group | 100.00% | |
Zengcheng Lihua Stock Company Limited ("Zengcheng Lihua") [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Company | 44.72% | [1] |
Proportion of equity interests held by the Group | 44.72% | [1] |
Proportion of equity interests held by non-controlling interests | 55.28% | [1] |
Number of individual holding more than zero point five percent equity interest | 0 | |
Maximum [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interests held by the Group | 2.00% | |
Maximum [member] | Zengcheng Lihua Stock Company Limited ("Zengcheng Lihua") [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interests held by individuals | 0.50% | |
[1] | (i) According to the Articles of Association of Zengcheng Lihua, the remaining shareholders are all natural persons and none of these individuals holds more than 0.5% equity interest in Zengcheng Lihua. All directors of Zengcheng Lihua were appointed by the Company. After considering all shareholders of Zengcheng Lihua other than the Company are individuals with individual interest holding of less than 0.5% and such individuals do not act in concert, and also all directors of Zengcheng Lihua were appointed by the Company, the directors of the Company consider that the Company has the de facto control over the board and the substantial financial and operating decisions of Zengcheng Lihua. |
INVESTMENTS IN ASSOCIATES (Deta
INVESTMENTS IN ASSOCIATES (Details) $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
INVESTMENTS IN ASSOCIATES [abstract] | |||||
Share of net assets | ¥ 174,548,000 | ¥ 167,604,000 | |||
Less: provison for impairment | 0 | ||||
Investments in associates | ¥ 174,548,000 | $ 26,828 | ¥ 167,604,000 | ¥ 168,711,000 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
INVESTMENTS IN ASSOCIATES - MOV
INVESTMENTS IN ASSOCIATES - MOVEMENT (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
INVESTMENTS IN ASSOCIATES [abstract] | |||||
Beginning of the year | ¥ 167,604,000 | ¥ 168,711,000 | |||
Share of results after tax | 6,944,000 | $ 1,067 | 7,223,000 | ¥ 2,499,000 | |
Dividend | 0 | (8,330,000) | |||
End of the year | ¥ 174,548,000 | $ 26,828 | ¥ 167,604,000 | ¥ 168,711,000 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
INVESTMENTS IN ASSOCIATES - PRI
INVESTMENTS IN ASSOCIATES - PRINCIPAL ASSOCIATES (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2015CNY (¥) | |
Disclosure of associates [line items] | |||||
Paid-in capital | ¥ 7,083,537,000 | ¥ 7,083,537,000 | $ 1,088,720 | ¥ 7,083,537,000 | |
Significant contingent liabilities relating to the Group's interest in the associates | ¥ 0 | ||||
Significant restrictions on the transfer of assets or earnings from the associates to the Group | 0 | ||||
Guangzhou Tiecheng Enterprise Company Limited ("Tiecheng") [member] | |||||
Disclosure of associates [line items] | |||||
Percentage of equity interest attributable to the Company | 49.00% | 49.00% | |||
Paid-in capital | ¥ 343,050,000 | ||||
Shenzhen Guangzhou Railway Civil Engineering Company ("Shentu") [member] | |||||
Disclosure of associates [line items] | |||||
Percentage of equity interest attributable to the Company | 49.00% | 49.00% | |||
Paid-in capital | ¥ 64,000,000 | ||||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
INVESTMENTS IN ASSOCIATES - SUM
INVESTMENTS IN ASSOCIATES - SUMMARISED BALANCE SHEETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Disclosure of associates [line items] | ||||||
Current assets | ¥ 6,057,886 | $ 931,080 | ¥ 5,495,120 | |||
Non-current assets | 27,936,352 | 4,293,739 | 27,375,138 | |||
Total assets | 33,994,238 | 5,224,819 | 32,870,258 | |||
Current liabilities | 5,164,975 | 793,842 | 4,664,510 | |||
Non-current liabilities | 172,182 | 26,464 | 175,693 | |||
Total liabilities | 5,337,157 | 820,306 | 4,840,203 | |||
Equity | 28,657,081 | $ 4,404,513 | 28,030,055 | ¥ 27,444,262 | ¥ 26,786,460 | |
Share of net assets | 174,548 | 167,604 | ||||
Guangzhou Tiecheng Enterprise Company Limited ("Tiecheng") [member] | ||||||
Disclosure of associates [line items] | ||||||
Current assets | 105,556 | 87,733 | ||||
Non-current assets | 333,602 | 339,409 | ||||
Total assets | 439,158 | 427,142 | ||||
Current liabilities | 210,546 | 210,553 | ||||
Non-current liabilities | 202 | |||||
Total liabilities | 210,546 | 210,755 | ||||
Equity | 228,612 | 216,387 | ||||
Share of net assets | 112,020 | 106,030 | ||||
Carrying amount of interest in associates | 112,020 | 106,030 | ||||
Shenzhen Guangzhou Railway Civil Engineering Company ("Shentu") [member] | ||||||
Disclosure of associates [line items] | ||||||
Current assets | 780,104 | 921,761 | ||||
Non-current assets | 12,151 | 7,614 | ||||
Total assets | 792,255 | 929,375 | ||||
Current liabilities | 664,646 | 803,713 | ||||
Total liabilities | 664,646 | 803,713 | ||||
Equity | 127,609 | 125,662 | ||||
Share of net assets | 62,528 | 61,574 | ||||
Carrying amount of interest in associates | ¥ 62,528 | ¥ 61,574 | ||||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
INVESTMENTS IN ASSOCIATES - 105
INVESTMENTS IN ASSOCIATES - SUMMARIZED COMPREHENSIVE INCOME STATEMENTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Disclosure of associates [line items] | |||||
Revenue | ¥ 18,331,422 | $ 2,817,488 | ¥ 17,280,504 | ¥ 15,725,309 | |
Net profit | 1,011,768 | 155,506 | 1,153,700 | 1,063,308 | |
Other comprehensive income | 181,941 | ||||
Total comprehensive income for the year | 1,193,709 | $ 183,470 | 1,153,700 | 1,063,308 | |
Associates [member] | |||||
Disclosure of associates [line items] | |||||
Net profit | 14,172 | 14,741 | |||
Guangzhou Tiecheng Enterprise Company Limited ("Tiecheng") [member] | |||||
Disclosure of associates [line items] | |||||
Revenue | 44,351 | 41,217 | 32,955 | ||
Net profit | 12,225 | 8,800 | 4,516 | ||
Total comprehensive income for the year | 12,225 | 8,800 | 4,516 | ||
Shenzhen Guangzhou Railway Civil Engineering Company ("Shentu") [member] | |||||
Disclosure of associates [line items] | |||||
Revenue | 506,608 | 493,277 | 467,911 | ||
Net profit | 1,947 | 5,941 | 583 | ||
Total comprehensive income for the year | ¥ 1,947 | ¥ 5,941 | ¥ 583 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
INVESTMENTS IN ASSOCIATES - REC
INVESTMENTS IN ASSOCIATES - RECONCILIATION OF SUMMARISED FINANCIAL INFORMATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||
Disclosure of associates [line items] | |||||
Profit for the year | ¥ 1,011,768 | $ 155,506 | [1] | ¥ 1,153,700 | ¥ 1,063,308 |
Associates [member] | |||||
Disclosure of associates [line items] | |||||
Balance at beginning of year | 342,049 | 344,308 | |||
Profit for the year | 14,172 | 14,741 | |||
Dividend | (17,000) | ||||
Balance at end of year | ¥ 356,221 | ¥ 342,049 | 344,308 | ||
Percentage of ownership interest | 49.00% | 49.00% | 49.00% | ||
Carrying value | ¥ 174,548 | ¥ 167,604 | |||
Guangzhou Tiecheng Enterprise Company Limited ("Tiecheng") [member] | |||||
Disclosure of associates [line items] | |||||
Balance at beginning of year | 216,387 | 207,587 | |||
Profit for the year | 12,225 | 8,800 | 4,516 | ||
Balance at end of year | ¥ 228,612 | ¥ 216,387 | 207,587 | ||
Percentage of ownership interest | 49.00% | 49.00% | 49.00% | ||
Carrying value | ¥ 112,020 | ¥ 106,030 | |||
Shenzhen Guangzhou Railway Civil Engineering Company ("Shentu") [member] | |||||
Disclosure of associates [line items] | |||||
Balance at beginning of year | 125,662 | 136,721 | |||
Profit for the year | 1,947 | 5,941 | 583 | ||
Dividend | (17,000) | ||||
Balance at end of year | ¥ 127,609 | ¥ 125,662 | ¥ 136,721 | ||
Percentage of ownership interest | 49.00% | 49.00% | 49.00% | ||
Carrying value | ¥ 62,528 | ¥ 61,574 | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
DEFERRED TAX ASSETS_(LIABILI107
DEFERRED TAX ASSETS/(LIABILITIES) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
DEFERRED TAX ASSETS/(LIABILITIES) [abstract] | |||||
Deferred tax assets | ¥ 115,716 | ¥ 98,862 | ¥ 113,418 | ||
Less: Offsetting of deferred tax liabilities | (78,711) | (18,933) | |||
Deferred tax assets (net) | 37,005 | $ 5,688 | 79,929 | ||
Deferred tax liabilities | (145,102) | (87,816) | ¥ (91,545) | ||
Less: Offsetting of deferred tax assets | 78,711 | 18,933 | |||
Deferred tax liabilities (net) | (66,391) | $ (10,204) | (68,883) | ||
Deferred tax assets (liabilities) | ¥ (29,386) | ¥ 11,046 | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
DEFERRED TAX ASSETS_(LIABILI108
DEFERRED TAX ASSETS/(LIABILITIES) - MATURITY ANALYSIS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of maturity analysis for deferred tax assets/(liabilities) [line items] | |||
Deferred tax assets | ¥ 115,716 | ¥ 98,862 | ¥ 113,418 |
Deferred tax liabilities | (145,102) | (87,816) | ¥ (91,545) |
To be recovered after more than 12 months [member] | |||
Disclosure of maturity analysis for deferred tax assets/(liabilities) [line items] | |||
Deferred tax assets | 114,387 | 97,706 | |
Deferred tax liabilities | (142,159) | (83,937) | |
To be recovered within 12 months [member] | |||
Disclosure of maturity analysis for deferred tax assets/(liabilities) [line items] | |||
Deferred tax assets | 1,329 | 1,156 | |
Deferred tax liabilities | ¥ (2,943) | ¥ (3,879) |
DEFERRED TAX ASSETS - MOVEMENTS
DEFERRED TAX ASSETS - MOVEMENTS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | ¥ 98,862 | ¥ 113,418 |
(Credited)/Charged to comprehensive income statement | 16,854 | (14,556) |
Balance at end of year | 115,716 | 98,862 |
Impairment provision for receivables [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | 7,003 | 7,828 |
(Credited)/Charged to comprehensive income statement | (2,230) | (825) |
Balance at end of year | 4,773 | 7,003 |
Impairment provision for fixed assets and construction-in-progress [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | 4,155 | 2,739 |
(Credited)/Charged to comprehensive income statement | 2,793 | 1,416 |
Balance at end of year | 6,948 | 4,155 |
Impairment provision for materials and supplies [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | 5,994 | 11,837 |
(Credited)/Charged to comprehensive income statement | 1,126 | (5,843) |
Balance at end of year | 7,120 | 5,994 |
Difference in accounting base and tax base of the government grants [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | 25,720 | 24,952 |
(Credited)/Charged to comprehensive income statement | (201) | 768 |
Balance at end of year | 25,519 | 25,720 |
Difference in accounting base and tax base of employee benefits obligations [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | 39,655 | 35,207 |
(Credited)/Charged to comprehensive income statement | 992 | 4,448 |
Balance at end of year | 40,647 | 39,655 |
Loss on disposal of fixed assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | 16,285 | 30,805 |
(Credited)/Charged to comprehensive income statement | 14,424 | (14,520) |
Balance at end of year | 30,709 | 16,285 |
Others [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | 50 | 50 |
(Credited)/Charged to comprehensive income statement | ¥ (50) | |
Balance at end of year | ¥ 50 |
DEFERRED TAX LIABILITIES - MOVE
DEFERRED TAX LIABILITIES - MOVEMENTS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | ¥ 87,816 | ¥ 91,545 |
Charged/(Credited) to comprehensive income statement | 57,286 | (3,729) |
Balance at end of year | 145,102 | 87,816 |
Differences in accounting base and tax base in recognition of fixed assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | 8,267 | 9,607 |
Charged/(Credited) to comprehensive income statement | (404) | (1,340) |
Balance at end of year | 7,863 | 8,267 |
Differences in accounting base and tax base in recognition of leasehold land payments [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | 68,883 | 71,376 |
Charged/(Credited) to comprehensive income statement | (2,493) | (2,493) |
Balance at end of year | 66,390 | 68,883 |
Changes in fair value of available-for-sale financial assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Charged/(Credited) to comprehensive income statement | 60,647 | |
Balance at end of year | 60,647 | |
Others [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance at beginning of period | 10,666 | 10,562 |
Charged/(Credited) to comprehensive income statement | (464) | 104 |
Balance at end of year | ¥ 10,202 | ¥ 10,666 |
DEFERRED TAX ASSETS_(LIABILI111
DEFERRED TAX ASSETS/(LIABILITIES) - TAX LOSS CARRY-FORWARDS AND OTHER TEMPORARY DIFFERENCES (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
DEFERRED TAX ASSETS/(LIABILITIES) [abstract] | |||
Tax losses that can be carried forward (Note a) | [1] | ¥ 82,918 | ¥ 77,328 |
Deductible temporary differences | 12,452 | 12,302 | |
Total tax loss carry-forwards and deductible temporary differences | ¥ 95,370 | ¥ 89,630 | |
[1] | Note a: The tax loss carry-forwards in which no deferred income tax assets were recognised will expire in the following years: As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 2017 15,405 - 2018 14,307 13,499 2019 6,516 6,371 2020 18,478 18,478 2021 22,622 22,325 2022 - 22,245 77,328 82,918 |
DEFERRED TAX ASSETS_(LIABILI112
DEFERRED TAX ASSETS/(LIABILITIES) - TAX LOSS CARRY-FORWARDS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of tax loss carry-forwards in which no deferred income tax assets were recognised [line items] | |||
Tax loss carry-forwards in which no deferred income tax assets were recognised | [1] | ¥ 82,918 | ¥ 77,328 |
Less than 1 year [member] | |||
Disclosure of tax loss carry-forwards in which no deferred income tax assets were recognised [line items] | |||
Tax loss carry-forwards in which no deferred income tax assets were recognised | 15,405 | ||
Between 1 and 2 years [member] | |||
Disclosure of tax loss carry-forwards in which no deferred income tax assets were recognised [line items] | |||
Tax loss carry-forwards in which no deferred income tax assets were recognised | 13,499 | 14,307 | |
2019 [member] | |||
Disclosure of tax loss carry-forwards in which no deferred income tax assets were recognised [line items] | |||
Tax loss carry-forwards in which no deferred income tax assets were recognised | 6,371 | 6,516 | |
2020 [member] | |||
Disclosure of tax loss carry-forwards in which no deferred income tax assets were recognised [line items] | |||
Tax loss carry-forwards in which no deferred income tax assets were recognised | 18,478 | 18,478 | |
2021 [member] | |||
Disclosure of tax loss carry-forwards in which no deferred income tax assets were recognised [line items] | |||
Tax loss carry-forwards in which no deferred income tax assets were recognised | 22,325 | ¥ 22,622 | |
2022 [member] | |||
Disclosure of tax loss carry-forwards in which no deferred income tax assets were recognised [line items] | |||
Tax loss carry-forwards in which no deferred income tax assets were recognised | ¥ 22,245 | ||
[1] | Note a: The tax loss carry-forwards in which no deferred income tax assets were recognised will expire in the following years: As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 2017 15,405 - 2018 14,307 13,499 2019 6,516 6,371 2020 18,478 18,478 2021 22,622 22,325 2022 - 22,245 77,328 82,918 |
LONG-TERM PREPAID EXPENSES (Det
LONG-TERM PREPAID EXPENSES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Disclosure of long-term prepaid expenses [line items] | |||||
Opening net book amount | ¥ 7,824 | ¥ 14,485 | |||
Additions | 28,745 | 307 | |||
Amortisation | (3,168) | (6,968) | ¥ (14,179) | ||
Closing net book amount | 33,401 | $ 5,134 | 7,824 | 14,485 | |
Gross carrying amount [member] | |||||
Disclosure of long-term prepaid expenses [line items] | |||||
Opening net book amount | 64,077 | 63,770 | |||
Closing net book amount | 92,822 | 64,077 | 63,770 | ||
Accumulated amortisation [member] | |||||
Disclosure of long-term prepaid expenses [line items] | |||||
Opening net book amount | (56,253) | (49,285) | |||
Closing net book amount | ¥ (59,421) | ¥ (56,253) | ¥ (49,285) | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
FINANCIAL INSTRUMENTS BY CAT114
FINANCIAL INSTRUMENTS BY CATEGORY - ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | [1] | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | ||
Disclosure of financial assets [line items] | ||||||||||
Available-for-sale investments (Note 15) | ¥ 296,414 | $ 45,558 | ¥ 53,826 | |||||||
Long-term receivable (Note 16) | 31,274 | 4,806 | 31,406 | |||||||
Trade and other receivables excluding prepayments (Note 18 and 19) | 4,417,317 | 3,665,646 | ||||||||
Short-term deposits | 108,000 | [2] | 16,599 | 108,000 | [2] | |||||
Cash and cash equivalents (Note 20) | 1,160,515 | $ 178,368 | 1,359,656 | $ 208,975 | ¥ 2,220,803 | ¥ 1,665,057 | ||||
Total | 6,013,520 | 5,218,534 | ||||||||
Loans and receivables [member] | ||||||||||
Disclosure of financial assets [line items] | ||||||||||
Long-term receivable (Note 16) | 31,274 | 31,406 | ||||||||
Trade and other receivables excluding prepayments (Note 18 and 19) | 4,417,317 | 3,665,646 | ||||||||
Short-term deposits | 108,000 | 108,000 | ||||||||
Cash and cash equivalents (Note 20) | 1,160,515 | 1,359,656 | ||||||||
Total | 5,717,106 | 5,164,708 | ||||||||
Available-for-sale [member] | ||||||||||
Disclosure of financial assets [line items] | ||||||||||
Available-for-sale investments (Note 15) | 296,414 | 53,826 | ||||||||
Total | ¥ 296,414 | ¥ 53,826 | ||||||||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. | |||||||||
[2] | Note: The original effective interest rate of term deposits was 1.56% per annum (2016: 1.65% per annum). |
FINANCIAL INSTRUMENTS BY CAT115
FINANCIAL INSTRUMENTS BY CATEGORY - LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
Disclosure of financial liabilities [line items] | ||||
Payables for fixed assets and construction-in-progress | ¥ 2,214,547 | $ 340,370 | ¥ 1,765,185 | |
Dividends payable | 12,893 | $ 1,982 | 15,542 | |
Other financial liabilities [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Trade and other payables excluding other tax payables, employee salary and benefits payables and advances (Notes 25 and 26) | 2,356,953 | 2,201,483 | ||
Payables for fixed assets and construction-in-progress | 2,214,547 | 1,765,185 | ||
Dividends payable | 12,893 | 15,542 | ||
Total | ¥ 4,584,393 | ¥ 3,982,210 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
AVAILABLE-FOR-SALE INVESTMEN116
AVAILABLE-FOR-SALE INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | |
Disclosure of available-for-sale financial assets [line items] | ||||
Available-for-sale investments | ¥ 296,414 | $ 45,558 | ¥ 53,826 | |
Maximum [member] | ||||
Disclosure of available-for-sale financial assets [line items] | ||||
Percentage of equity interests held by the Group in certain unlisted companies | 2.00% | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
AVAILABLE-FOR-SALE INVESTMEN117
AVAILABLE-FOR-SALE INVESTMENTS - CHANGES IN LEVEL 3 (Details) - 12 months ended Dec. 31, 2017 $ in Thousands | CNY (¥) | USD ($) | [1] |
Disclosure of changes in level 3 of available-for-sale financial assets [line items] | |||
Closing balance of previous period | ¥ 53,826,000 | ||
Changes in the fair values of available-for-sale financial assets | 242,588,000 | $ 37,285 | |
Closing balance of current period | 296,414,000 | $ 45,558 | |
Impairment provision of available-for-sale instruments | 0 | ||
Level 3 [member] | |||
Disclosure of changes in level 3 of available-for-sale financial assets [line items] | |||
Transfer from cost | 37,500,000 | ||
Changes in the fair values of available-for-sale financial assets | 242,588,000 | ||
Closing balance of current period | ¥ 280,088,000 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
LONG-TERM RECEIVABLE (Details)
LONG-TERM RECEIVABLE (Details) | Dec. 31, 2017 |
Yangcheng Railway Business [member] | |
Disclosure of acquired receivables [line items] | |
Average effective interest rate for amortised cost, long-term receivable | 6.54% |
MATERIALS AND SUPPLIES (Details
MATERIALS AND SUPPLIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
MATERIALS AND SUPPLIES [abstract] | ||||
Raw materials | ¥ 185,639 | ¥ 184,520 | ||
Reusable rail-line track materials | 76,017 | 79,311 | ||
Accessories | 67,493 | 67,236 | ||
Retailing consumables | 1,578 | 1,540 | ||
Materials and supplies | ¥ 330,727 | $ 50,832 | ¥ 332,607 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
MATERIALS AND SUPPLIES - Narrat
MATERIALS AND SUPPLIES - Narratives (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
MATERIALS AND SUPPLIES [abstract] | |||
Cost of materials and supplies consumed, recognized as operating expenses | ¥ 1,627,992,000 | ¥ 1,697,166,000 | ¥ 1,565,648,000 |
Provision for writing down materials and supplies to net realisable values | 28,466,000 | 23,976,000 | |
Additional provisions, materials and supplies | 7,844,000 | ||
Written off arising from realization of losses in the disposal of assets | ¥ 3,354,000 | ¥ 18,163,000 |
TRADE RECEIVABLES - TRADE RECEI
TRADE RECEIVABLES - TRADE RECEIVABLES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
TRADE RECEIVABLES [abstract] | ||||||
Trade receivables | ¥ 4,148,413 | ¥ 3,369,331 | ||||
Including: receivables from related parties | 2,808,052 | 730,061 | ||||
Less: Provision for impairment of receivables | (6,203) | (4,965) | ¥ (8,395) | ¥ (7,003) | ||
Trade receivables, net | ¥ 4,142,210 | $ 636,646 | ¥ 3,364,366 | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
TRADE RECEIVABLES - AGING ANALY
TRADE RECEIVABLES - AGING ANALYSIS OF OUTSTANDING TRADE RECEIVABLES (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of aging analysis of outstanding trade receivables [line items] | ||
Trade receivables | ¥ 4,148,413 | ¥ 3,369,331 |
Less than 1 year [member] | ||
Disclosure of aging analysis of outstanding trade receivables [line items] | ||
Trade receivables | 2,799,028 | 2,517,281 |
Over 1 year but within 2 years [member] | ||
Disclosure of aging analysis of outstanding trade receivables [line items] | ||
Trade receivables | 763,812 | 588,640 |
Over 2 years but within 3 years [member] | ||
Disclosure of aging analysis of outstanding trade receivables [line items] | ||
Trade receivables | 522,122 | 223,675 |
Over 3 years [member] | ||
Disclosure of aging analysis of outstanding trade receivables [line items] | ||
Trade receivables | ¥ 63,451 | ¥ 39,735 |
TRADE RECEIVABLES - AGING AN123
TRADE RECEIVABLES - AGING ANALYSIS OF PAST DUE BUT NOT IMPAIRED TRADE RECEIVABLES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
Disclosure of aging analysis of past due but not impaired trade receivables [line items] | ||||
Trade receivables | ¥ 4,142,210 | $ 636,646 | ¥ 3,364,366 | |
Financial assets past due but not impaired [member] | ||||
Disclosure of aging analysis of past due but not impaired trade receivables [line items] | ||||
Trade receivables | 1,343,182 | 847,085 | ||
Over 1 year but within 2 years [member] | Financial assets past due but not impaired [member] | ||||
Disclosure of aging analysis of past due but not impaired trade receivables [line items] | ||||
Trade receivables | 758,141 | 588,640 | ||
Over 2 years but within 3 years [member] | Financial assets past due but not impaired [member] | ||||
Disclosure of aging analysis of past due but not impaired trade receivables [line items] | ||||
Trade receivables | 522,122 | 223,675 | ||
Over 3 years but within 5 years [member] | Financial assets past due but not impaired [member] | ||||
Disclosure of aging analysis of past due but not impaired trade receivables [line items] | ||||
Trade receivables | ¥ 62,919 | ¥ 34,770 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
TRADE RECEIVABLES - AGING AN124
TRADE RECEIVABLES - AGING ANALYSIS OF IMPAIRED TRADE RECEIVABLES (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of anging analysis of impaired trade receivables [line items] | ||||
Provision for impairment of trade receivables | ¥ 6,203 | ¥ 4,965 | ¥ 8,395 | ¥ 7,003 |
Financial assets impaired [member] | ||||
Disclosure of anging analysis of impaired trade receivables [line items] | ||||
Provision for impairment of trade receivables | 6,203 | 4,965 | ||
Over 1 year but within 2 years [member] | Financial assets impaired [member] | ||||
Disclosure of anging analysis of impaired trade receivables [line items] | ||||
Provision for impairment of trade receivables | 5,671 | |||
Over 5 years [member] | Financial assets impaired [member] | ||||
Disclosure of anging analysis of impaired trade receivables [line items] | ||||
Provision for impairment of trade receivables | ¥ 532 | ¥ 4,965 |
TRADE RECEIVABLES - MOVEMENTS O
TRADE RECEIVABLES - MOVEMENTS ON PROVISION FOR IMPAIRMENT OF TRADE RECEIVABLES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
TRADE RECEIVABLES [abstract] | |||
At beginning of period | ¥ 4,965 | ¥ 8,395 | ¥ 7,003 |
Provision for impairment loss | 5,904 | 6 | 3,305 |
Reversal | (127) | ||
Written-off | (4,666) | (3,436) | (1,786) |
At end of period | ¥ 6,203 | ¥ 4,965 | ¥ 8,395 |
PREPAYMENTS AND OTHER RECEIV126
PREPAYMENTS AND OTHER RECEIVABLES - PREPAYMENTS AND OTHER RECEIVABLES AMOUNT DUE BY CUSTOMER TYPE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
PREPAYMENTS AND OTHER RECEIVABLES [abstract] | ||||
Due from third parties | ¥ 268,715 | ¥ 304,530 | ||
Due from related parties | 45,536 | 25,961 | ||
Total prepayments and other receivables | ¥ 314,251 | $ 48,299 | ¥ 330,491 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
PREPAYMENTS AND OTHER RECEIV127
PREPAYMENTS AND OTHER RECEIVABLES - PREPAYMENTS AND OTHER RECEIVABLES (Details) $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [3] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
PREPAYMENTS AND OTHER RECEIVABLES [abstract] | |||||||
Other receivables | ¥ 288,432,000 | ¥ 314,616,000 | |||||
Less: Provision for impairment loss | (13,325,000) | (13,336,000) | ¥ (13,377,000) | ¥ (62,060,000) | |||
Other receivables, net (Note (a)) | [1] | 275,107,000 | 301,280,000 | ||||
Prepayments (Note (b)) | [2] | 39,144,000 | 29,211,000 | ||||
Total prepayments and other receivables | 314,251,000 | $ 48,299 | 330,491,000 | ||||
Input VAT with related invoices not been received or verified | ¥ 1,221,900,000 | ¥ 156,072,000 | |||||
[1] | (a) Other receivables mainly represent miscellaneous deposits and receivables arising from the course of provision of non-railway transportation services by the Group. As of 31 December 2017, the input VAT with related invoices not been received or verified amounted to RMB122,190,000 (2016: RMB 156,072,000). Movements on the provision for impairment of other receivables are as follows: 2015 2016 2017 RMB’000 RMB’000 RMB’000 At 1 January 62,060 13,377 13,336 Provision for impairment loss 62 - - Reversal of impairment loss provision (7,699) (1) (3) Written-off (28,734) (40) (8) Elimination arising from business combination (12,312) - - At 31 December 13,377 13,336 13,325 | ||||||
[2] | (b) Prepayments mainly represent amounts paid in advance to the suppliers for utilities and other operating expenses of the Group. The carrying amounts of the Group’s prepayments and other receivables are denominated in the following currencies: As at 31 December 2016 As at 31 December 2017 RMB’000 RMB’000 RMB 330,425 314,184 HKD 66 67 330,491 314,251 The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. The Group does not hold any collateral as security. | ||||||
[3] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
PREPAYMENTS AND OTHER RECEIV128
PREPAYMENTS AND OTHER RECEIVABLES - MOVEMENTS ON PROVISION FOR IMPAIRMENT OF OTHER RECEIVABLES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
PREPAYMENTS AND OTHER RECEIVABLES [abstract] | |||
At beginning of period | ¥ 13,336 | ¥ 13,377 | ¥ 62,060 |
Provision for impairment loss | 62 | ||
Reversal of impairment loss provision | (3) | (1) | (7,699) |
Written-off | (8) | (40) | (28,734) |
Elimination arising from business combination | (12,312) | ||
At end of period | ¥ 13,325 | ¥ 13,336 | ¥ 13,377 |
PREPAYMENTS AND OTHER RECEIV129
PREPAYMENTS AND OTHER RECEIVABLES - PREPAYMENTS AND OTHER RECEIVABLES CARRYING AMOUNT BY CURRENCY (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
Disclosure of prepayments and other receivables carrying amount by currency [line items] | ||||
Prepayments and other receivables | ¥ 314,251 | $ 48,299 | ¥ 330,491 | |
RMB | ||||
Disclosure of prepayments and other receivables carrying amount by currency [line items] | ||||
Prepayments and other receivables | 314,184 | 330,425 | ||
HKD | ||||
Disclosure of prepayments and other receivables carrying amount by currency [line items] | ||||
Prepayments and other receivables | ¥ 67 | ¥ 66 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
CASH AND CASH EQUIVALENTS AN130
CASH AND CASH EQUIVALENTS AND SHORT-TERM DEPOSITS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | ||||
CASH AND CASH EQUIVALENTS AND SHORT-TERM DEPOSITS [abstract] | ||||||||||
Cash at bank and on hand | ¥ 1,108,015 | ¥ 1,007,156 | ||||||||
Term deposits with initial term not more than three months | 52,500 | 352,500 | ||||||||
Cash and cash equivalents | 1,160,515 | $ 178,368 | [1] | 1,359,656 | $ 208,975 | [1] | ¥ 2,220,803 | ¥ 1,665,057 | ||
Term deposits with initial term of over three months (Note) | 108,000 | [2] | $ 16,599 | [1] | 108,000 | [2] | ||||
Total cash and cash equivalents and short-term deposits | ¥ 1,268,515 | ¥ 1,467,656 | ||||||||
Original effective interest rate of term deposits | 1.56% | 1.56% | 1.65% | 1.65% | ||||||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. | |||||||||
[2] | Note: The original effective interest rate of term deposits was 1.56% per annum (2016: 1.65% per annum). |
CASH AND CASH EQUIVALENTS AN131
CASH AND CASH EQUIVALENTS AND SHORT-TERM DEPOSITS DENOMINATED BY CURRENCY (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of cash and cash equivalents and short-term deposits [line items] | ||
Cash and cash equivalents and short-term deposits | ¥ 1,268,515 | ¥ 1,467,656 |
RMB | ||
Disclosure of cash and cash equivalents and short-term deposits [line items] | ||
Cash and cash equivalents and short-term deposits | 1,235,719 | 1,351,880 |
HKD | ||
Disclosure of cash and cash equivalents and short-term deposits [line items] | ||
Cash and cash equivalents and short-term deposits | 32,650 | 115,680 |
USD | ||
Disclosure of cash and cash equivalents and short-term deposits [line items] | ||
Cash and cash equivalents and short-term deposits | ¥ 146 | ¥ 96 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2015CNY (¥) | ||
Disclosure of classes of share capital [line items] | |||||
Total authorised number of ordinary shares | shares | 7,083,537,000 | 7,083,537,000 | 7,083,537,000 | ||
Par value per share | ¥ / shares | ¥ 1 | ¥ 1 | |||
Authorised, issued and fully paid: | |||||
Total | ¥ 7,083,537 | ¥ 7,083,537 | $ 1,088,720 | [1] | ¥ 7,083,537 |
Movement | 0 | 0 | |||
H shares [member] | |||||
Authorised, issued and fully paid: | |||||
Total | 1,431,300 | 1,431,300 | 1,431,300 | ||
A shares [member] | |||||
Authorised, issued and fully paid: | |||||
Total | ¥ 5,652,237 | ¥ 5,652,237 | ¥ 5,652,237 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
RESERVES - APPROPRIATIONS TO RE
RESERVES - APPROPRIATIONS TO RESERVES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reserves within equity [line items] | |||
Stated rate of appropriations from retained earninngs to reserves | 10.00% | 10.00% | 10.00% |
Stated rate of reserve to registered capital | 50.00% | ||
Statutory surplus reserve [member] | |||
Disclosure of reserves within equity [line items] | |||
Appropriation to reserves amount | ¥ 101,982 | ¥ 117,050 | ¥ 111,760 |
Minimum [member] | Statutory surplus reserve [member] | |||
Disclosure of reserves within equity [line items] | |||
Stated rate of reserve to registered capital | 25.00% |
RESERVES - MOVEMENTS OF SPECIAL
RESERVES - MOVEMENTS OF SPECIAL RESERVE - SAFETY PRODUCTION FUND (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Disclosure of movements of special reserves - safety production fund [line items] | |||||
Beginning of the year | ¥ 2,825,593 | ||||
End of the year | 3,109,516 | $ 477,924 | ¥ 2,825,593 | ||
Other reserves [member] | |||||
Disclosure of movements of special reserves - safety production fund [line items] | |||||
Beginning of the year | 0 | 0 | |||
Appropriation for retained earnings | 227,250 | 204,792 | ¥ 192,860 | ||
Utilisation | (227,250) | (204,792) | (192,860) | ||
End of the year | ¥ 0 | ¥ 0 | ¥ 0 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
RESERVES - Narratives (Details)
RESERVES - Narratives (Details) | Dec. 31, 2017 |
RESERVES [abstract] | |
Percentage of revenue from freight transportation services used to calculate Safety Production Fund | 1.00% |
Percentage of revenue from rendering of passenger transportation services used to calculate Safety Production Fund | 1.50% |
RESERVES - MOVEMENTS OF OTHER C
RESERVES - MOVEMENTS OF OTHER COMPREHENSIVE INCOME OF THE GROUP (Details) - 12 months ended Dec. 31, 2017 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | [1] |
Disclosure of movements of other comprehensive income [line items] | |||
Beginning of the year | ¥ 2,825,593 | ||
Addition due to fair value changes on available-for-sale investments | 242,588 | $ 37,285 | |
Addition due to deferred liabilities related to fair value changes on available-for-sale investments | (60,647) | (9,321) | |
End of the year | 3,109,516 | $ 477,924 | |
Accumulated other comprehensive income [member] | |||
Disclosure of movements of other comprehensive income [line items] | |||
End of the year | ¥ 181,941 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
DEFERRED INCOME (Details)
DEFERRED INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | |
DEFERRED INCOME RELATING TO GOVERNMENT GRANTS [abstract] | ||||
Government grants | ¥ 105,754 | ¥ 106,810 | ||
Others | 37 | |||
Total | ¥ 105,791 | $ 16,260 | ¥ 106,810 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
EMPLOYEE BENEFITS OBLIGATION138
EMPLOYEE BENEFITS OBLIGATIONS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
EMPLOYEE BENEFITS OBLIGATIONS [abstract] | |||
Provisions for employee benefits | ¥ 30,745 | ¥ 34,043 | ¥ 13,380 |
Less: current portion included in accruals and other payables | (30,745) | (34,043) | |
Noncurrent provisions for employee benefits | ¥ 0 | ¥ 0 |
EMPLOYEE BENEFITS OBLIGATIONS -
EMPLOYEE BENEFITS OBLIGATIONS - MOVEMENT (Details) - CNY (¥) ¥ in Thousands | Oct. 26, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
EMPLOYEE BENEFITS OBLIGATIONS [abstract] | |||
Beginning of the year | ¥ 34,043 | ¥ 13,380 | |
Additions | ¥ (24,727) | 24,727 | |
Payments | (3,298) | (4,064) | |
End of the year | ¥ 30,745 | ¥ 34,043 |
TRADE PAYABLES (Details)
TRADE PAYABLES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
TRADE PAYABLES [abstract] | ||||
Payables to third parties | ¥ 614,822 | ¥ 610,472 | ||
Payables to related parties | 710,255 | 533,051 | ||
Total trade payables | ¥ 1,325,077 | $ 203,661 | ¥ 1,143,523 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
TRADE PAYABLES - AGING ANALYSIS
TRADE PAYABLES - AGING ANALYSIS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
Disclosure of aging analysis of trade payables [line items] | ||||
Trade payables | ¥ 1,325,077 | $ 203,661 | ¥ 1,143,523 | |
Less than 1 year [member] | ||||
Disclosure of aging analysis of trade payables [line items] | ||||
Trade payables | 1,075,298 | 860,315 | ||
Over 1 year but within 2 years [member] | ||||
Disclosure of aging analysis of trade payables [line items] | ||||
Trade payables | 180,294 | 258,227 | ||
Over 2 years but within 3 years [member] | ||||
Disclosure of aging analysis of trade payables [line items] | ||||
Trade payables | 49,359 | 7,477 | ||
Over 3 years [member] | ||||
Disclosure of aging analysis of trade payables [line items] | ||||
Trade payables | ¥ 20,126 | ¥ 17,504 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
ACCRUALS AND OTHER PAYABLES (De
ACCRUALS AND OTHER PAYABLES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
ACCRUALS AND OTHER PAYABLES [abstract] | ||||
Due to third parties | ¥ 1,017,309 | ¥ 1,188,416 | ||
Due to related parties | 445,922 | 430,331 | ||
Total accruals and other payables | ¥ 1,463,231 | $ 224,893 | ¥ 1,618,747 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
ACCRUALS AND OTHER PAYABLES - D
ACCRUALS AND OTHER PAYABLES - DETAILED INFORMATION (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) |
Disclosure of detailed information of accruals and other payables [line items] | ||||
Advances received from customers | ¥ 152,010 | ¥ 295,088 | ||
Other deposits received | 226,453 | 242,104 | ||
Deposits received for construction projects | 203,886 | 207,877 | ||
Salary and welfare payables | 178,427 | 172,299 | ||
Amount received on behalf of Labour Union | 73,463 | 68,914 | ||
Other taxes payable | 70,173 | 59,357 | ||
Deposits received from ticketing agencies | 34,298 | 36,018 | ||
Employee benefits obligations (Note 24) | 30,745 | 34,043 | ||
Housing maintenance fund | 15,740 | 15,692 | ||
Other payables | 100,333 | 118,795 | ||
Total accruals and other payables | 1,463,231 | $ 224,893 | 1,618,747 | |
GEDC [member] | Zengcheng Lihua [member] | ||||
Disclosure of detailed information of accruals and other payables [line items] | ||||
Payables to GEDC assumed by business combination with Zengcheng Lihua | ¥ 377,703 | ¥ 368,560 | ||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
AUDITORS' REMUNERATION (Details
AUDITORS' REMUNERATION (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AUDITORS' REMUNERATION [abstract] | |||
Auditor's remuneration for audit services | ¥ 8,400,000 | ¥ 8,080,000 | ¥ 8,080,000 |
Auditor's remuneration for non-audit services | ¥ 950,000 | ¥ 190,000 | ¥ 250,000 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
EMPLOYEE BENEFITS [abstract] | ||||
Wages and salaries | ¥ 4,848,830 | ¥ 4,362,506 | ¥ 3,672,234 | |
Provision for medical, housing scheme and other employee benefits (a) | [1] | 1,220,708 | 1,114,918 | 916,965 |
Contributions to the defined contribution scheme (b) | [2] | 772,682 | 741,923 | 620,898 |
Total employee benefits | ¥ 6,842,220 | ¥ 6,219,347 | ¥ 5,210,097 | |
[1] | (a) Housing scheme In accordance with the PRC housing reform regulations, the Group is required to make contributions to a state-sponsored housing fund at 10% or 12% of the salaries of the employees. At the same time, the employees are also required to make a contribution at 10% or 12% of the salaries out of their payroll. The employees are entitled to claim the entire sum of the fund under certain specified withdrawal circumstances. The Group has no further legal nor constructive obligation towards housing benefits of these employees offered beyond the above contributions made. | |||
[2] | (b) Defined contribution pension scheme All the full-time employees of the Group are entitled to join a statutory pension scheme. The employees would receive pension payments equal to their basic salaries payable upon their retirement up to their death. Pursuant to the PRC laws and regulations, contributions to the basic old age insurance for the Group’s local staff are to be made monthly to a government agency based on 26% of the standard salary set by the provincial government, of which 18% is borne by the Company or its subsidiaries and the remainder 8% is borne by the employees. The government agency is responsible for the pension liabilities due to the employees upon their retirement. The Group accounts for these contributions on an accrual basis and charges the related contributions to expense in the year to which the contributions relate. |
EMPLOYEE BENEFITS - HOUSING SCH
EMPLOYEE BENEFITS - HOUSING SCHEME - Narratives (Details) | Dec. 31, 2017 |
Minimum [member] | |
Disclosure of employee benefits [line items] | |
Stated rate of salaries contributed by group to housing fund | 10.00% |
Stated rate of salaries contributed by employees to housing fund | 10.00% |
Maximum [member] | |
Disclosure of employee benefits [line items] | |
Stated rate of salaries contributed by group to housing fund | 12.00% |
Stated rate of salaries contributed by employees to housing fund | 12.00% |
EMPLOYEE BENEFITS - DEFINED CON
EMPLOYEE BENEFITS - DEFINED CONTRIBUTION PENSION SCHEME - Narratives (Details) | Dec. 31, 2017 |
EMPLOYEE BENEFITS [abstract] | |
Percentage of standard salary set by provincial government in defined contribution pension scheme | 26.00% |
Percentage of standard salary borne by Group in defined contribution pension scheme | 18.00% |
Percentage of standard salary borne by employees in defined contribution pension scheme | 8.00% |
EMPLOYEE BENEFITS - FIVE HIGHES
EMPLOYEE BENEFITS - FIVE HIGHEST PAID INDIVIDUALS - Narratives (Details) | 12 Months Ended | |
Dec. 31, 2017CNY (¥)individual | Dec. 31, 2016CNY (¥)individual | |
Disclosure of highest paid [line items] | ||
Number of key management personnel | 5 | 5 |
Directors [member] | ||
Disclosure of highest paid [line items] | ||
Number of key management personnel | 1 | 1 |
Senior executives [member] | ||
Disclosure of highest paid [line items] | ||
Number of key management personnel | 3 | 4 |
Supervisor [member] | ||
Disclosure of highest paid [line items] | ||
Number of key management personnel | 1 | 0 |
Minimum [member] | ||
Disclosure of highest paid [line items] | ||
Emolument amount | ¥ | ¥ 0 | ¥ 0 |
Maximum [member] | ||
Disclosure of highest paid [line items] | ||
Emolument amount | ¥ | ¥ 498,000 | ¥ 447,255 |
OTHER LOSSES - NET (Details)
OTHER LOSSES - NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
OTHER LOSSES - NET [abstract] | |||||
Loss on disposal of fixed assets - net | ¥ (77,026) | ¥ (133,073) | ¥ (49,008) | ||
Interest income from banks | 18,974 | 24,772 | 38,145 | ||
Dividend income on available-for-sale investments | 6,473 | 5,884 | 5,884 | ||
Government grants | 13,272 | 9,769 | 7,349 | ||
Impairment of fixed assets (Note 6) | (11,185) | (80,393) | |||
Loss arising from business combination | (45,073) | ||||
Impairment of construction-in-progress (Note 7) | (5,662) | (2,434) | |||
Income from compensation | 295 | 749 | 1,167 | ||
Impairment of trade receivables (Note 18) | (5,904) | (6) | |||
Unwinding of interest accrued on long-term receivable | 2,868 | 2,602 | |||
Others | 3,756 | (13,305) | 9,736 | ||
Other losses, net | ¥ (48,477) | $ (7,451) | ¥ (108,270) | ¥ (114,627) | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
FINANCE (COSTS)_INCOME - NET (D
FINANCE (COSTS)/INCOME - NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
FINANCE (COSTS)/INCOME - NET [abstract] | |||||
Bank charges | ¥ (2,866) | ¥ (3,823) | ¥ (7,387) | ||
Amortisation of interest for employee benefit obligations (Note 24) | (226) | ||||
Net foreign exchange (loss)/gains | (7,304) | 6,374 | 3,005 | ||
Finance (costs)/income-net | ¥ (10,170) | $ (1,563) | ¥ 2,551 | ¥ (4,608) | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
INCOME TAX EXPENSE - ANALYSIS O
INCOME TAX EXPENSE - ANALYSIS OF TAXATION CHARGES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||
INCOME TAX EXPENSE [abstract] | |||||
Applicable income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | |
Current income tax | ¥ 355,579 | ¥ 379,482 | ¥ 416,480 | ||
Deferred income tax (Note 12) | (20,215) | 10,827 | (27,950) | ||
Income tax expense | ¥ 335,364 | $ 51,544 | [1] | ¥ 390,309 | ¥ 388,530 |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
INCOME TAX EXPENSE - ANALYSI152
INCOME TAX EXPENSE - ANALYSIS OF DIFFERENCES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
INCOME TAX EXPENSE [abstract] | |||||
Profit (loss) before tax | ¥ 1,347,132 | $ 207,050 | ¥ 1,544,009 | ¥ 1,451,838 | |
Tax calculated at the statutory rate of 25% | 336,783 | 386,002 | 362,960 | ||
Effect of income not subject to tax | (3,354) | (3,277) | (2,096) | ||
Effect of expenses not deductible for tax purposes | 663 | 1,928 | 1,920 | ||
Effect of undeductible loss arising from business combination | 11,268 | ||||
Reversal of deferred tax assets for the impairment loss of investments in associates and other receivable recognized in prior years | 10,500 | ||||
Tax losses for which no deferred tax asset was recognised | 5,561 | 5,656 | 4,619 | ||
Over provision of previous year's income tax | (3,886) | ||||
Utilisation of previously unrecognised tax losses | (403) | (641) | |||
Income tax expense | ¥ 335,364 | $ 51,544 | ¥ 390,309 | ¥ 388,530 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | May 31, 1996shares | ||
Earnings per share [line items] | ||||||
Profit attributable to owners of the Company | ¥ 1,015,361 | $ 156,058 | [1] | ¥ 1,158,253 | ¥ 1,070,822 | |
Dilutive potential ordinary share | 0 | 0 | 0 | 0 | ||
Basic and diluted earnings per share | (per share) | ¥ 0.14 | $ 0.02 | [1] | ¥ 0.16 | ¥ 0.15 | |
Basic and diluted earnings per equivalent ADS | (per share) | ¥ 7.17 | $ 1.10 | [1] | ¥ 8.18 | ¥ 7.56 | |
Ordinary shares [member] | ||||||
Earnings per share [line items] | ||||||
Weighted average number of ordinary shares in issue | 7,083,537,000 | 7,083,537,000 | 7,083,537,000 | 7,083,537,000 | ||
American Depositary Shares [member] | ||||||
Earnings per share [line items] | ||||||
Weighted average number of ordinary shares in issue | 141,670,740 | 141,670,740 | 141,670,740 | 141,670,740 | ||
H shares [member] | ||||||
Earnings per share [line items] | ||||||
Number of H shares each American Depositary Share represents | 50 | |||||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
DIVIDENDS (Details)
DIVIDENDS (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
ifrs DIVIDENDS [abstract] | |||
Final, proposed dividends paid, ordinary shares | ¥ 566,683 | ¥ 566,683 | ¥ 566,683 |
Final, proposed dividends paid, ordinary shares per share | ¥ 0.08 | ¥ 0.08 | ¥ 0.08 |
CASH FLOW GENERATED FROM OPE155
CASH FLOW GENERATED FROM OPERATIONS - RECONCILIATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Reconciliation from profit before income tax to cash generated from operations: | |||||
Profit before income tax: | ¥ 1,347,132 | $ 207,050 | ¥ 1,544,009 | ¥ 1,451,838 | |
Adjustments for: | |||||
Depreciation of fixed assets (Note 6) | 1,662,460 | 1,518,970 | 1,411,742 | ||
Impairment of fixed assets (Note 6) | 11,185 | 80,393 | |||
Impairment of construction-in-progress (Note 7) | 5,662 | 2,434 | |||
Loss arising from business combination | 45,073 | ||||
Provision for/ (reversal of) impairment of materials and supplies (Note 17) | 7,844 | (5,209) | 64,096 | ||
Amortisation of leasehold land payments (Note 8) | 45,680 | 38,670 | 28,413 | ||
Loss on disposal of fixed assets and costs on repairs | 321,741 | 133,073 | 49,008 | ||
Amortisation of long-term prepaid expenses (Note 13) | 3,168 | 6,968 | 14,179 | ||
Amortisation of interest for employee benefit obligations (Note 24) | 226 | ||||
Adjustments for share of results of associates, net of tax (Note 11) | (6,944) | (7,223) | (2,499) | ||
Dividends income on available-for-sale investments (Note 29) | (6,473) | (5,884) | (5,884) | ||
Provision for impairment of receivables | 5,901 | 5 | (4,459) | ||
Amortisation of deferred revenue | (3,282) | (3,258) | (2,529) | ||
Interest income | (4,647) | (4,353) | (5,502) | ||
Operating profit before working capital changes | 3,383,765 | 3,221,430 | 3,126,529 | ||
Increase in trade receivables | (419,349) | (1,034,064) | (553,980) | ||
Decrease in materials and supplies | 6,121 | 14,432 | 34,843 | ||
Increase in prepayments and other receivables | (12,975) | (47,594) | 83,553 | ||
Decrease in long-term receivable | 3,000 | 2,000 | 2,000 | ||
Increase in trade payables | 181,554 | 34,178 | (270,151) | ||
(Decrease)/increase in accruals and other payables | (179,412) | 22,481 | 97,585 | ||
Net cash generated from operations | ¥ 2,962,704 | $ 455,359 | ¥ 2,212,863 | ¥ 2,520,379 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
CASH FLOW GENERATED FROM OPE156
CASH FLOW GENERATED FROM OPERATIONS - DISPOSAL OF FIXED ASSETS AND LEASEHOLD LAND (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
CASH FLOW GENERATED FROM OPERATIONS [abstract] | |||||
Net book amount (Note 6) | ¥ 336,812 | ¥ 142,336 | ¥ 83,944 | ||
Receivable arising from disposal of fixed assets | 20,349 | (21,627) | |||
Payable arising from disposal of fixed assets | (2,457) | ||||
Transfer to materials and supplies | (12,087) | (11,662) | (5,488) | ||
Loss on disposal of fixed assets and costs on repairs | (321,741) | (133,073) | (49,008) | ||
Proceeds from disposal of fixed assets | ¥ 527 | $ 81 | ¥ 17,950 | ¥ 7,821 | |
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. |
CONTINGENCY (Details)
CONTINGENCY (Details) | Dec. 31, 2017CNY (¥) |
CONTINGENCY [abstract] | |
Contingent liabilities | ¥ 0 |
COMMITMENTS - CAPITAL COMMITMEN
COMMITMENTS - CAPITAL COMMITMENTS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
COMMITMENTS [abstract] | ||
Contracted but not provided for | ¥ 1,341,055 | ¥ 769,013 |
Authorised but not contracted for | ¥ 518,945 | ¥ 1,165,237 |
COMMITMENTS - OPERATING LEASE C
COMMITMENTS - OPERATING LEASE COMMITMENTS - Narratives (Details) - CNY (¥) | Oct. 26, 2016 | Jan. 01, 2007 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of operating lease commitments [line items] | |||||
Date of acquisition | Oct. 26, 2016 | Jan. 1, 2007 | |||
Lease terms | 20 years | ||||
Related lease rental paid and payable | ¥ 57,358,000 | ¥ 55,090,000 | ¥ 55,090,000 | ||
Maximum [member] | |||||
Disclosure of operating lease commitments [line items] | |||||
Lease terms | 50 years | ||||
Maximum [member] | Guangzhou Railway Group [member] | Yangcheng Railway Business [member] | |||||
Disclosure of operating lease commitments [line items] | |||||
Related lease rental paid and payable | ¥ 74,000,000 |
BUSINESS COMBINATIONS - CONSIDE
BUSINESS COMBINATIONS - CONSIDERATION (Details) - CNY (¥) ¥ in Thousands | Oct. 26, 2016 | Jan. 01, 2007 | Dec. 31, 2016 | |
Disclosure of detailed information about business combination [line items] | ||||
Date of acquisition | Oct. 26, 2016 | Jan. 1, 2007 | ||
Amount payables arising from the Acquisition(a) | [1] | ¥ 731,992 | ||
Less: Employee benefits obligation undertaken to be borne by the Company | (24,727) | ¥ 24,727 | ||
Total consideration(a) | [1] | 707,265 | ||
GRCL [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Amount payables arising from the Acquisition(a) | [1] | 453,658 | ||
Less: Employee benefits obligation undertaken to be borne by the Company | (9,024) | |||
Total consideration(a) | [1] | 444,634 | ||
GSRC [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Amount payables arising from the Acquisition(a) | [1] | 249,677 | ||
Less: Employee benefits obligation undertaken to be borne by the Company | (15,703) | |||
Total consideration(a) | [1] | 233,974 | ||
Guangzhou Railway Group [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Amount payables arising from the Acquisition(a) | [1] | 28,657 | ||
Total consideration(a) | [1] | ¥ 28,657 | ||
[1] | (a) The total consideration of approximately RMB707,265,000 had been offset against the trade receivables due from Guangzhou Railway Group, GRCL and CSRC to the Group. Therefore, no actual cash outflow occurred in the business acquisition. |
BUSINESS COMBINATIONS - IDENTIF
BUSINESS COMBINATIONS - IDENTIFIABLE ASSETS AND LIABILITIES (Details) - CNY (¥) | Oct. 26, 2016 | Dec. 31, 2016 | |
BUSINESS COMBINATIONS [abstract] | |||
Cash outflow occurred in business acquisition | ¥ 0 | ||
Inventories | 23,110,000 | ||
Fixed assets (Note 6) | 648,890,000 | ¥ 648,890,000 | |
Construction-in-progress (Note 7) | 59,992,000 | ||
Less: Employee benefits obligation undertaken to be borne by the Company | (24,727,000) | ¥ 24,727,000 | |
Total identifiable net assets | 707,265,000 | ||
Total consideration | [1] | ¥ 707,265,000 | |
[1] | (a) The total consideration of approximately RMB707,265,000 had been offset against the trade receivables due from Guangzhou Railway Group, GRCL and CSRC to the Group. Therefore, no actual cash outflow occurred in the business acquisition. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |||||
Services received and purchase made | ||||||||
Operating lease rental paid to related parties for the leasing of land use rights (Note 36(b)) | ¥ 57,358,000 | ¥ 55,090,000 | ¥ 55,090,000 | |||||
Minimum [member] | ||||||||
Services received and purchase made | ||||||||
Percentage of management fee | 0.30% | 0.30% | ||||||
Maximum [member] | ||||||||
Services received and purchase made | ||||||||
Percentage of management fee | 5.00% | 5.00% | ||||||
Railroad and Related Business [member] | ||||||||
Provision of services and sales of goods | ||||||||
Revenue for railway network usage and other related services to related parties (ii) | ¥ 7,644,230,000 | $ 1,174,897 | [1] | 7,093,198,000 | 5,874,727,000 | |||
Revenue from rendering of services | 3,594,947,000 | 3,405,667,000 | 2,482,976,000 | |||||
Services received and purchase made | ||||||||
Operating lease rental paid to related parties for the leasing of land use rights (Note 36(b)) | 57,358,000 | 8,816 | [1] | 55,090,000 | 55,090,000 | |||
Social services (employee housing and public security services and other ancillary services) provided by related parties (iii) | 0 | $ 0 | [1] | 11,297,000 | 16,080,000 | |||
Cost from services received and purchase made | 2,826,731,000 | 2,673,204,000 | 2,350,955,000 | |||||
Railroad and Related Business [member] | Guangzhou Railway Group's subsidiaries [member] | ||||||||
Provision of services and sales of goods | ||||||||
Revenue from railway operation service provided to related parties (iii) | [2] | 660,847,000 | 579,253,000 | 550,168,000 | ||||
Services received and purchase made | ||||||||
Operating lease rental paid to related parties for the leasing of land use rights (Note 36(b)) | 57,358,000 | 55,090,000 | 55,090,000 | |||||
Railroad and Related Business [member] | Guangzhou Railway Group [member] | Guangzhou Railway Group's subsidiaries [member] | ||||||||
Provision of services and sales of goods | ||||||||
Provision of train transportation services to related parties (i) | [3] | 1,505,348,000 | 1,425,538,000 | 751,956,000 | ||||
Services received and purchase made | ||||||||
Provision of train transportation services by related parties (i) | [3] | 1,048,524,000 | 989,778,000 | 888,903,000 | ||||
Railroad and Related Business [member] | Guangzhou Railway Group [member] | Guangzhou Railway Group's subsidiaries [member] | CRC [member] | ||||||||
Provision of services and sales of goods | ||||||||
Revenue for railway network usage and other related services to related parties (ii) | [4] | 1,428,752,000 | 1,400,876,000 | 1,180,852,000 | ||||
Services received and purchase made | ||||||||
Cost settled by related parties for railway network usage and related services (ii) | [4] | 1,720,849,000 | 1,628,336,000 | 1,406,962,000 | ||||
Other businesses [member] | ||||||||
Services received and purchase made | ||||||||
Cost from services received and purchase made | 1,026,146,000 | 1,134,967,000 | 1,115,469,000 | |||||
Other businesses [member] | GEDC [member] | Yangcheng Railway Business [member] | ||||||||
Services received and purchase made | ||||||||
Social services (employee housing and public security services and other ancillary services) provided by related parties (iii) | [2] | 11,297,000 | 16,080,000 | |||||
Other businesses [member] | Guangzhou Railway Group [member] | Guangzhou Railway Group's subsidiaries [member] | ||||||||
Provision of services and sales of goods | ||||||||
Sales of materials and supplies to related parties (iv) | [5] | 23,386,000 | 29,449,000 | 25,940,000 | ||||
Services received and purchase made | ||||||||
Provision of repair and maintenance services by related parties (iv) | [5] | 298,040,000 | 306,988,000 | 489,038,000 | ||||
Purchase of materials and supplies from related parties (v) | [6] | 455,716,000 | 469,273,000 | 384,262,000 | ||||
Provision of construction services by related parties (vi) | ¥ 272,390,000 | ¥ 347,409,000 | [7] | ¥ 226,089,000 | [7] | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. | |||||||
[2] | (iii) The service charges are levied based on contract prices determined based on a "cost plus a profit margin" and agreed between both contracting parties. | |||||||
[3] | (i) The service charges are determined based on a pricing scheme set by the CRC or based on negotiation between the contracting parties with reference to actual costs incurred. | |||||||
[4] | (ii) Such revenues/charges are determined by the CRC based on its standard charges applied on a nationwide basis. | |||||||
[5] | (iv) The prices are determined based on mutual negotiation between the contracting parties with reference to actual costs incurred. | |||||||
[6] | (v) The prices are determined based on mutual negotiation between the contracting parties with reference to procurement costs incurred plus a management fee ranged from 0.3% to 5% on the costs. | |||||||
[7] | (vi) Based on construction amount determined under national railway engineering guidelines. |
RELATED PARTY TRANSACTIONS - MA
RELATED PARTY TRANSACTIONS - MATERIAL TRANSACTIONS WITH CRC AND OTHER RAILWAY COMPANIES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Minimum [member] | ||||
Services received and purchase made | ||||
Percentage of management fee | 0.30% | |||
Maximum [member] | ||||
Services received and purchase made | ||||
Percentage of management fee | 5.00% | |||
Railroad and Related Business [member] | ||||
Provision of services and sales of goods | ||||
Revenue from rendering of services | ¥ 3,594,947 | ¥ 3,405,667 | ¥ 2,482,976 | |
Services received and purchase made | ||||
Cost from services received and purchase made | 2,826,731 | 2,673,204 | 2,350,955 | |
Railroad and Related Business [member] | China Railway Corporation Group [member] | ||||
Provision of services and sales of goods | ||||
Provision of train transportation services to CRC Group (i) | [1] | 81,396 | 29,794 | 36,515 |
Revenue from railway operation service provided to related parties (iii) | [2] | 1,800,692 | 1,628,143 | 1,421,995 |
Revenue from rendering of services | 3,759,807 | 3,435,577 | 3,211,176 | |
Services received and purchase made | ||||
Provision of train transportation services by CRC Group (i) | [1] | 306,208 | 292,754 | 277,138 |
Cost from services received and purchase made | 1,701,799 | 1,668,801 | 1,642,490 | |
Railroad and Related Business [member] | CRC [member] | China Railway Corporation Group [member] | ||||
Provision of services and sales of goods | ||||
Revenue collected by CRC for services provided by CRC Group (ii) | [3] | 1,877,719 | 1,777,640 | 1,752,666 |
Services received and purchase made | ||||
Cost settled by CRC for services provided by CRC Group (ii) | [3] | 1,395,591 | 1,376,047 | 1,365,352 |
Other businesses [member] | ||||
Services received and purchase made | ||||
Cost from services received and purchase made | 1,026,146 | 1,134,967 | 1,115,469 | |
Other businesses [member] | China Railway Corporation Group [member] | ||||
Provision of services and sales of goods | ||||
Provisions of repairing services for cargo trucks to CRC Group (ii) | [3] | 333,917 | 323,993 | 284,348 |
Sales of materials and supplies to CRC Group (iv) | [4] | 7,185 | 7,073 | 38,395 |
Provision of apartment leasing services to CRC Group (iv) | [4] | 722 | 641 | 762 |
Revenue from rendering of services | 341,824 | 331,707 | 323,505 | |
Services received and purchase made | ||||
Provision of repair and maintenance services by CRC Group (iv) | [4] | 31,089 | 42,954 | 2,813 |
Purchase of materials and supplies from CRC Group (v) | [5] | 19,258 | 15,220 | 33,591 |
Provision of construction services by CRC Group (vi) | [6] | 4,385 | 13,538 | |
Cost from services received and purchase made | ¥ 50,347 | ¥ 62,559 | ¥ 49,942 | |
[1] | (i) The service charges are determined based on a pricing scheme set by the CRC or based on negotiation between the contracting parties with reference to actual costs incurred. | |||
[2] | (iii) The service charges are levied based on contract prices determined based on a "cost plus a profit margin" and agreed between both contracting parties. | |||
[3] | (ii) Such revenues/charges are determined by the CRC based on its standard charges applied on a nationwide basis. | |||
[4] | (iv) The prices are determined based on mutual negotiation between the contracting parties with reference to actual costs incurred. | |||
[5] | (v) The prices are determined based on mutual negotiation between the contracting parties with reference to procurement costs incurred plus a management fee ranged from 0.3% to 5% on the costs. | |||
[6] | (vi) Based on construction amount determined under national railway engineering guidelines. |
RELATED PARTY TRANSACTIONS - RE
RELATED PARTY TRANSACTIONS - REVENUES COLLECTED AND SETTLED THROUGH THE CRC (Details) - CRC [member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of revenues collected and settled through related parties [line items] | |||
Passenger transportation | ¥ 7,295,985 | ¥ 6,960,491 | ¥ 6,642,129 |
Freight transportation | 1,266,122 | 1,105,061 | 1,022,025 |
Other transportation related services | 112,267 | 86,883 | 86,199 |
Revenue arising from exchanges of goods or services | ¥ 8,674,374 | ¥ 8,152,435 | ¥ 7,750,353 |
RELATED PARTY TRANSACTIONS -165
RELATED PARTY TRANSACTIONS - MATERIAL BALANCES (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of material balances of related party transactions [line items] | |||
Trade receivables | ¥ 2,808,052 | ¥ 730,061 | |
Prepayments and other receivables | 45,536 | 25,961 | |
Trade payables | 710,255 | 533,051 | |
Accruals and other payables | 445,922 | 430,331 | |
Guangzhou Railway Group [member] | |||
Disclosure of material balances of related party transactions [line items] | |||
Trade receivables | [1] | 132,830 | 229,056 |
Prepayments and other receivables | 3,277 | 691 | |
Trade payables | [1] | 61,899 | 61,486 |
Payables for fixed assets and construction-in-progress | 53,821 | 10,805 | |
Accruals and other payables | 7,390 | 5,663 | |
Guangzhou Railway Group [member] | Subsidiaries of Guangzhou Railway Group [member] | |||
Disclosure of material balances of related party transactions [line items] | |||
Trade receivables | [1] | 1,302,591 | 501,005 |
Prepayments and other receivables | 41,052 | 25,270 | |
Prepayments for fixed assets and construction-in-progress | [2] | 4,352 | 225 |
Trade payables | [2] | 619,509 | 432,712 |
Payables for fixed assets and construction-in-progress | 220,377 | 168,038 | |
Accruals and other payables | [3] | 430,041 | 422,877 |
Guangzhou Railway Group [member] | Guangzhou Railway Group and its subsidiaries [member] | |||
Disclosure of material balances of related party transactions [line items] | |||
Trade receivables | 1,435,421 | 730,061 | |
Prepayments and other receivables | 44,329 | 25,961 | |
Prepayments for fixed assets and construction-in-progress | 4,352 | 225 | |
Trade payables | 681,587 | 533,051 | |
Payables for fixed assets and construction-in-progress | 342,519 | 249,308 | |
Accruals and other payables | 439,509 | 430,331 | |
Guangzhou Railway Group [member] | Associates [member] | |||
Disclosure of material balances of related party transactions [line items] | |||
Trade payables | 179 | 38,853 | |
Payables for fixed assets and construction-in-progress | 68,321 | 70,465 | |
Accruals and other payables | [4] | ¥ 2,078 | ¥ 1,791 |
[1] | (i) The trade balances due from/to Guangzhou Railway Group, subsidiaries of Guangzhou Railway Group mainly represent service fees and charges payable and receivable balances arising from the provision of passenger transportation and cargo forwarding businesses jointly with these related parties within the PRC. | ||
[2] | (ii) The trade payables due to subsidiaries of Guangzhou Railway Group mainly represent payables arising from unsettled fees for purchase of materials and provision of other services according to various service agreements entered into between the Group and the related parties. | ||
[3] | (iii) The other payables due to subsidiaries of Guangzhou Railway Group mainly represent the performance deposits received for construction projects and deposits received from ticketing agencies. | ||
[4] | (iv) The other payables due to associates mainly represent the performance deposits received for construction projects operated by associates. |
RELATED PARTY TRANSACTIONS -166
RELATED PARTY TRANSACTIONS - MATERIAL BALANCES WITH CRC GROUP (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016CNY (¥) | |
Disclosure of receivables and payables from/to related parties | |||||
Trade receivables | ¥ 4,142,210 | $ 636,646 | ¥ 3,364,366 | ||
Other receivables | [2] | 275,107 | 301,280 | ||
Trade payables and payables for fixed assets and construction-in-progress | 1,325,077 | $ 203,661 | 1,143,523 | ||
Other payables | 100,333 | 118,795 | |||
CRC [member] | |||||
Disclosure of receivables and payables from/to related parties | |||||
Trade receivables | 1,372,631 | 1,443,272 | |||
Other receivables | 1,207 | 4,672 | |||
Trade payables and payables for fixed assets and construction-in-progress | 62,620 | 65,496 | |||
Other payables | ¥ 6,413 | ¥ 15,901 | |||
[1] | * Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB6.5063, the certified exchange rates for December 29, 2017 as published by the Federal Reserve Board of the United States. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 29, 2017 or on any other date. | ||||
[2] | (a) Other receivables mainly represent miscellaneous deposits and receivables arising from the course of provision of non-railway transportation services by the Group. As of 31 December 2017, the input VAT with related invoices not been received or verified amounted to RMB122,190,000 (2016: RMB 156,072,000). Movements on the provision for impairment of other receivables are as follows: 2015 2016 2017 RMB’000 RMB’000 RMB’000 At 1 January 62,060 13,377 13,336 Provision for impairment loss 62 - - Reversal of impairment loss provision (7,699) (1) (3) Written-off (28,734) (40) (8) Elimination arising from business combination (12,312) - - At 31 December 13,377 13,336 13,325 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - CNY (¥) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 19, 2018 | |
Disclosure of subsequent events [line items] | ||||
Final, proposed dividends paid, ordinary shares per share | ¥ 0.08 | ¥ 0.08 | ¥ 0.08 | |
Guangzhou Land Development Center [member] | ||||
Disclosure of subsequent events [line items] | ||||
Total resumption compensation | ¥ 6,000 | |||
Resumption compensation payable | ¥ 1,300 |