REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange on which Registered | ||
None |
None |
None |
Domestic shares (A shares), par value RMB1.00 per share |
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H shares, par value RMB1.00 per share |
* |
* | Includes 56,505,700 H shares in the form of American Depositary Shares. |
☒ | Accelerated Filer | ☐ | Non-Accelerated File | ☐ | Emerging Growth Company |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
U.S. GAAP ☐ | |
Other ☐ | ||||||
by the International Accounting Standards Board | ☒ |
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94 |
• | “Acquisition” means our acquisition of the railway transportation business between Guangzhou and Pingshi and the related assets and liabilities from Yangcheng Railway Company according to the asset purchase agreement dated November 15, 2004 between Yangcheng Railway Company and us. |
• | “China” or “PRC” means the People’s Republic of China. |
• | “CRH” means a China Railway High-Speed train. |
• | “CSRC” means China Securities Regulatory Commission. |
• | “CSRG” means China State Railway Group Co., Ltd., f/k/a/ China Railway Corporation or “CRC”, which was set up on March 14, 2013 by the First Session of the 12th National People’s Congress of the PRC to perform the commercial functions formerly performed by the Ministry of Railways and was renamed to its current name with the approval of State Council of PRC on June 18, 2019. |
• | “Company”, “we”, “our”, “our Company”, the “Group”, or “us” means Guangshen Railway Company Limited, a joint stock limited company incorporated in Shenzhen, China with limited liability, and its subsidiaries on a consolidated basis. |
• | “CSRG Group” means CSRG together with the subsidiaries transferred from MOR. |
• | “EMU” means electric multiple unit, a multiple unit train consisting of self-propelled carriages. |
• | “GMSR” means Guangmeishan Railway Limited Company. |
• | “GRCL” means Guangmeishan Railway Company Limited. |
• | “GRGC” means China Railway Guangzhou Group Co., Ltd., f/k/a Guangzhou Railway (Group) Company Limited, our largest shareholder. |
• | “GSR” means Ganzhou-Shaoguan Railway Company Limited. |
• | “GSRC” or “SR” means Guangdong Sanmao Railway Company Limited. |
• | “GZR” means Guangzhou-Zhuhai Railway Company Limited. |
• | “HKSE” means the Stock Exchange of Hong Kong Limited. |
• | “HKSE Listing Rules” means the Rules Governing the Listing of Securities on the HKSE. |
• | “Hong Kong” means The Hong Kong Special Administrative Region of the PRC. |
• | “Hong Kong dollars” or “HKD” means Hong Kong dollars, the lawful currency of Hong Kong. |
• | “Macau” means the Macau Special Administrative Region of the PRC. |
• | “MOF” means the Ministry of Finance of the PRC. |
• | “MOR” means the Ministry of Railways, which was dissolved by the First Session of the 12th National People’s Congress of PRC. |
• | “MOT” means Ministry of Transport. |
• | “MTR” means MTR Corporation Limited. |
• | “NDRC” means the National Development and Reform Commission of the PRC. |
• | “PBOC” means the People’s Bank of China. |
• | “Pearl River Delta” means the area in and adjacent to the southern part of Guangdong Province, PRC, surrounding the mouth of the Pearl River and its lower reaches. |
• | “Reform” means the transfer of (i) administrative functions pertaining to railway development planning and policies from the MOR to the MOT, (ii) other administrative functions previously performed by the MOR to the National Railway Administration, supervised by the MOT, and (iii) commercial functions previously performed by the MOR to the CRC, in accordance with the approved plan on State Council Institutional Reform and Transformation of Government Functions and Approval On Setting Up China Railway Company by the State Council. |
• | “RMB” means Renminbi Yuan, the lawful currency of the PRC. |
• | “Restructuring” means the restructuring conducted in connection with our initial public offering in 1996 during which we succeeded to the railroad and certain other businesses of our predecessor company and certain assets and liabilities of GRGC. |
• | “SAMR” means the State Administration for Market Regulation of China. |
• | “SEC” means the U.S. Securities and Exchange Commission. |
• | “tonne” means metric ton; and one ton is approximately 2,205 pounds in weight. |
• | “US$”, “USD” or “U.S. dollars” means U.S. dollars, the lawful currency of the United States. |
• | “Yangcheng Railway Company” means Guangdong Yangcheng Railway Enterprise Co., Ltd., a wholly owned subsidiary of GRGC, or its predecessor, Guangzhou Railway Group Yangcheng Railway Enterprise Development Company. |
ITEM 1. |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS |
ITEM 2. |
OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. |
KEY INFORMATION |
Year ended December 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
in thousands except for per share/ADS data) |
||||||||||||||||||||||||
Income Statement Data: |
||||||||||||||||||||||||
Revenue from Railroad and Related Business |
||||||||||||||||||||||||
- Passenger transportation |
7,757,077 | 8,108,384 | 8,009,590 | 4,114,522 | 6,169,109 | 968,068 | ||||||||||||||||||
- Freight transportation |
1,893,594 | 1,849,360 | 2,112,596 | 1,698,576 | 2,035,437 | 319,404 | ||||||||||||||||||
- Railway network usage and other transportation related services |
7,644,230 | 8,865,635 | 9,903,382 | 9,572,330 | 10,814,585 | 1,697,045 | ||||||||||||||||||
Subtotal |
17,294,901 | 18,823,379 | 20,025,568 | 15,385,428 | 19,019,131 | 2,984,517 | ||||||||||||||||||
Revenue from other businesses |
1,036,521 | 1,004,639 | 1,152,783 | 963,938 | 1,187,026 | 186,270 | ||||||||||||||||||
Total revenue |
18,331,422 | 19,828,018 | 21,178,351 | 16,349,366 | 20,206,157 | 3,170,787 | ||||||||||||||||||
Railroad and Related business operating expenses |
(15,850,056 | ) | (17,610,188 | ) | (18,942,185 | ) | (17,242,305 | ) | (20,475,287 | ) | (3,213,019 | ) | ||||||||||||
Other businesses operating expenses |
(1,082,531 | ) | (1,048,025 | ) | (1,134,229 | ) | (944,485 | ) | (1,099,355 | ) | (172,513 | ) | ||||||||||||
Other (losses)/gains-net |
(48,477 | ) | (108,613 | ) | (29,096 | ) | (3,841 | ) | 134,718 | 21,140 | ||||||||||||||
Operating profit/(loss) |
1,350,358 | 1,062,253 | 1,072,841 | (652,262 | ) | (1,193,154 | ) | (187,232 | ) | |||||||||||||||
Profit/(loss) attributable to equity holders of the Company |
1,015,361 | 784,059 | 748,439 | (557,876 | ) | (973,119 | ) | (152,704 | ) | |||||||||||||||
Operating profit/(loss) per share |
0.19 | 0.15 | 0.15 | (0.09 | ) | (0.17 | ) | (0.03 | ) | |||||||||||||||
Earnings/(losses) per share for profit attributable to equity holders of the Company |
||||||||||||||||||||||||
- Basic and diluted |
0.14 | 0.11 | 0.11 | (0.08 | ) | (0.14 | ) | (0.02 | ) | |||||||||||||||
Dividends declared per share |
0.08 | 0.06 | 0.06 | — | — | — | ||||||||||||||||||
Earnings/(losses) per ADS for profit attributable to equity holders of the Company |
7.17 | 5.53 | 5.28 | (3.94 | ) | (6.87 | ) | (1.08 | ) | |||||||||||||||
Balance Sheet Data (at year end): |
||||||||||||||||||||||||
Working capital |
892,911 | (65,568 | ) | 226,893 | (885,902 | ) | (1,304,655 | ) | (204,728 | ) | ||||||||||||||
Fixed assets-net |
23,617,138 | 24,184,248 | 23,566,081 | 23,016,415 | 24,010,161 | 3,767,718 | ||||||||||||||||||
Leasehold land payments |
1,980,278 | 1,924,496 | — | — | — | — | ||||||||||||||||||
Total assets |
33,994,238 | 35,402,237 | 36,893,133 | 36,780,453 | 37,403,422 | 5,869,413 | ||||||||||||||||||
Equity attributable to equity holders of the Company |
28,684,677 | 28,852,299 | 29,175,726 | 28,192,838 | 27,241,949 | 4,274,857 | ||||||||||||||||||
Share capital, issued and outstanding (domestic shares 5,652,237; H shares 1,431,300), RMB1.00 per value domestic shares |
5,652,237 | 5,652,237 | 5,652,237 | 5,652,237 | 5,652,237 | 866,243 | ||||||||||||||||||
H shares |
1,431,300 | 1,431,300 | 1,431,300 | 1,431,300 | 1,431,300 | 219,356 | ||||||||||||||||||
Cash Flow Statement Data: |
||||||||||||||||||||||||
Net cash generated from operating activities |
2,634,839 | 3,261,421 | 2,395,245 | 1,336,173 | 1,002,468 | 157,309 | ||||||||||||||||||
Net cash used in investing activities |
(2,264,647 | ) | (2,113,132 | ) | (2,087,032 | ) | (927,513 | ) | (926,112 | ) | (145,327 | ) | ||||||||||||
Net cash used in financing activities |
(569,333 | ) | (570,032 | ) | (484,632 | ) | (485,762 | ) | (62,126 | ) | (9,749 | ) | ||||||||||||
Payment for acquisition of fixed assets and construction-in-progress |
(2,273,426 | ) | (2,683,053 | ) | (2,441,116 | ) | (853,347 | ) | (1,060,262 | ) | (166,378 | ) | ||||||||||||
Dividends paid to the Company’s shareholders |
(569,333 | ) | (566,683 | ) | (425,012 | ) | (425,012 | ) | — | — | ||||||||||||||
Other Data: |
||||||||||||||||||||||||
Railroad transportation operating income/(loss) |
1,444,845 | 1,510,218 | 1,083,383 | (1,856,877 | ) | (1,456,156 | ) | (228,502 | ) | |||||||||||||||
Other businesses operating (loss)/income |
(46,010 | ) | (4,537 | ) | 18,554 | 19,453 | 87,671 | 13,757 |
(1) | Translation of amounts from RMB into US$, for the convenience of the reader has been made at RMB6.3726 to US$1.00, the certified exchange rate for December 30, 2021 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 U.S. dollars at that rate on December 31, 2021 or on any other date. |
A. |
Reserved |
B. |
Capitalization and Indebtedness |
C. |
Reasons for the Offer and Use of Proceeds |
D. |
Risk Factors |
• | Delay or impede our development, |
• | Result in negative publicity or increase our operating costs, |
• | Require significant management time and attention, and |
• | Subject us to remedies, administrative penalties and even criminal liabilities that may harm our business, including fines assessed for our current or historical operations, or demands or orders that we modify or even cease our business practices. |
• | mergers, acquisition, other business combinations or disposition of assets; |
• | issuance of any additional shares or other equity securities; |
• | the timing and amount of dividend payments; and |
• | the strategic development of our Company. |
ITEM 4. |
INFORMATION ON THE COMPANY |
A. |
History and Development of the Company Overview |
B. |
Business Overview |
Year ended December 31, |
||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||
Passenger Transportation |
||||||||||||||||||||
Total passenger transportation revenue (RMB millions) |
7,757.08 | 8,108.38 | 8,009.59 | 4,114.52 | 6,169.11 | |||||||||||||||
Total passengers (millions) |
85.13 | 89.35 | 85.13 | 42.85 | 40.78 | |||||||||||||||
Total passenger-kilometers (millions) |
25,528.73 | 25,497.28 | 24,058.23 | 12,931.16 | 12,053.94 | |||||||||||||||
Revenue per passenger-kilometer (RMB) (1) |
0.34 | 0.32 | 0.33 | 0.32 | 0.51 | |||||||||||||||
Freight Transportation |
||||||||||||||||||||
Total freight transportation revenue (RMB millions) |
1,893.59 | 1,849.36 | 2,112.60 | 1,698.58 | 2,035.44 | |||||||||||||||
- Revenues from freight charges (RMB millions) (2) |
1,741.97 | 1,609.69 | 1,740.91 | 1,456.61 | 1,701.85 | |||||||||||||||
- Other revenues from freight transportation (RMB millions) |
151.62 | 239.67 | 371.69 | 241.98 | 333.59 | |||||||||||||||
Outbound freight volume - tonnes (millions) |
15.86 | 15.71 | 16.24 | 16.27 | 18.84 | |||||||||||||||
Revenue per tonne (RMB) (3) |
109.83 | 102.46 | 107.20 | 89.53 | 90.33 | |||||||||||||||
Full-distance volume of outbound freight traffic, or tonne-kilometers (millions) (4) |
10,700.48 | 134,417.00 | 149,982.69 | 131,865.78 | 149,734.69 | |||||||||||||||
Revenue per tonne-kilometer (RMB)(5) |
0.18 | 0.014 | 0.014 | 0.013 | 0.014 | |||||||||||||||
Railway Network Usage and Other Transportation Related Services |
7,644.23 | 8,865.64 | 9,903.38 | 9,572.33 | 10,814.59 |
(1) | Revenue per passenger-kilometer is calculated by dividing total passenger transportation revenue by total passenger-kilometers. Management believes that revenue per passenger-kilometer is a useful measure for assessing the revenue levels of our passenger transportation business. |
(2) | Freight transportation on the PRC national railway system is subject to government-mandated pricing. Since January 1, 2018, the pricing model of freight transportation on the national railway system was changed from section fares system to freight consignment system. As a result, our freight revenue is mainly the income for the whole-route freight transportation fees for the outbound freight delivered by us. We also have to pay service fees to other railway companies providing the freight transportation service along the route. |
(3) | Revenue per tonne is calculated by dividing revenues from freight charges by total tonnage of outbound freight. Management believes that revenue per tonne is a useful measure for assessing the revenue levels of our freight transportation business. |
(4) | Starting from 2018, total tonne-kilometers represents the full-distance volume of our outbound freight traffic, whereas the “volume of freight traffic” as presented in 2017 and previous years refers to the volume of freight traffic (including the outbound, arrival and pass-through freight) transported over the distance then-managed by us under the section fares system. |
(5) | Revenue per tonne-kilometer is calculated by dividing total freight revenue by total tonne-kilometers. Management believes that revenue per tonne-kilometer is a useful measure for assessing the revenue levels of our freight transportation business. |
• | transportation business of Guangzhou-Shenzhen intercity express trains; |
• | long-distance trains; |
• | Through Trains in Hong Kong; and |
• | Other revenue from passenger transportation. |
• | 90 pairs of intercity high-speed passenger trains between Guangzhou and Shenzhen (including 15 pairs of Guangzhou East to the Chaozhou-Shantou and Meizhou cross-network EMU trains); |
• | 9 pairs of Hong Kong Through Trains, the operation of which has been suspended due to the shutdown of Hong Kong boarder by the Hong Kong government as a result of the COVID-19 pandemic since January 30, 2020; and |
• | 141 pairs of long-distance trains. Long-distance trains included long-distance passenger trains operated by us between the following departure and terminal stations during 2021: |
Departure/Terminal Station |
Terminal/Departure Station | |
Guangzhou | Beijing West, Nanjing, Shanghai South, Dazhou, Wuchang, Yantai, Wenzhou, Zhangjiajie West, Xinyi, Jingdezhen North, Maoming | |
Guangzhou East | Beijing West, Xiamen North, Meizhou, Shantou | |
Shenzhen | Shanghai South, Urumqi, Qingdao, Luoyang, Meizhou | |
Shenzhen East | Chengdu East, Zhangjiajie West, Guiyang | |
Dongguan East | Chengdu, Hefei, Lanzhou West, Huizhou | |
Shantou | Wuchang | |
Huizhou | Dazhou, Wuchang, Wanzhou | |
Sanya | Beijing West |
Total Passenger |
||||||||||||||||||||||||||||||||||||
Transportation Revenue (million RMB yuan) |
Total Passengers (million people) |
Revenue per Passenger |
||||||||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
2019 |
2020 |
2021 |
2019 |
2020 |
2021 |
||||||||||||||||||||||||||||
Guangzhou-Shenzhen Trains |
3,102.0 | 1,648.6 | 1,897.0 | 40.0 | 18.1 | 17.4 | 77.6 | 91.1 | 109.0 | |||||||||||||||||||||||||||
Hong Kong Through Trains |
261.2 | 14.5 | 0 | 1.9 | 0.1 | 0 | 137.5 | 145.3 | 0 | |||||||||||||||||||||||||||
Long-distance Trains (1) |
4,111.8 | 2,106.1 | 3,878.5 | 43.2 | 24.6 | 23.4 | N/A | N/A | N/A | |||||||||||||||||||||||||||
Other Revenues from Passenger Transportation |
534.6 | 345.3 | 393.6 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Combined passenger operations |
8,009.6 | 4,114.5 | 6,169.1 | 85.1 | 42.8 | 40.8 | N/A | N/A | N/A |
(1) | Our revenue of long-distance passenger trains includes both the revenue from the passengers arriving at our railway stations and the revenue from the passengers departing from our railway stations. However, the number of our long-distance passengers only includes the passengers departing from our railway stations. As a result, we believe that the “per passenger revenue” cannot fairly reflect the financial status of our passenger transportation business. |
Station |
Location |
Connected Railways |
Passenger Transportation Business |
Total Passengers for 2021 (millions) |
||||||
Guangzhou Station | Yuexiu District, Guangzhou | Beijing-Guangzhou Railway, Guangzhou-Maoming Railway, Guangzhou-Shenzhen Railway, Guangzhou-Foshan-Zhaoqing Intercity Railway, Line 2 and Line 5 of Guangzhou’s subway system |
Long-distance trains, intercity trains between Guangzhou and Shenzhen |
12.81 | ||||||
Guangzhou East Station | Tianhe District, Guangzhou | Beijing-Guangzhou Railway, Guangzhou-Shenzhen Railway, Xiamen-Shenzhen Railway, Guangzhou-Dongguan-Shenzhen intercity passenger line, Line 1 and Line 3 of Guangzhou’s subway system |
Long-distance trains, intercity trains between Guangzhou and Shenzhen, Hong Kong Through Trains | 11.00 | ||||||
Shenzhen Station | Luohu District, Shenzhen | Guangzhou-Shenzhen Railway,Hong Kong railway, Luobao Line of Shenzhen’s subway system |
Long-distance trains, inter-city trains between Guangzhou and Shenzhen |
5.96 | ||||||
Shaoguan East Station | Shaoguan | Beijing-Guangzhou Railway |
Long-distance trains |
1.58 |
• | Revenues from freight charges, which mainly represents the revenues from the total freight charges of our outbound freight transportation, whereas the revenues from outbound freight and inbound freight as presented in previous years refer to the revenue of freight transportation (including the outbound, pass-through and arrival freight) charged by the distance managed by us under the section fares system; and |
• | Other revenues from freight transportation, which mainly represents the revenue from freight services for transportation between the stations and receiving locations designated by our customers. |
2019 |
2020 |
2021 |
||||||||||
(RMB millions) |
||||||||||||
Railway Network Usage |
4,206.9 | 3,595.5 | 3,788.3 | |||||||||
Passenger transportation network usage services |
2,979.3 | 3,382.1 | 2,306.4 | |||||||||
Freight transportation network usage services |
1,227.6 | 1,213.4 | 1,481.9 | |||||||||
Other Transportation-Related Services(1) |
5,696.5 | 5,976.8 | 7,026.3 | |||||||||
Railway operation services |
3,790.4 | 3,661.5 | 3,775.6 | |||||||||
Other Services(2) |
1,906.1 | 2,315.3 | 3,250.7 | |||||||||
Total |
9,903.4 | 9,572.3 | 10,814.6 |
(1) | Other transportation-related services include provision of railway operation services and other services. |
(2) | Other services include lease of locomotive and passenger trains, fueling of locomotive and passenger trains, parcel transportation and other transportation. |
C. |
Organizational Structure |
Country of Incorporation |
Percentage of Interest held by our Company |
|||||||
Dongguan Changsheng Enterprise Company Limited |
PRC | 51 | % | |||||
Shenzhen Fu Yuan Enterprise Development Company Limited |
PRC | 100 | % | |||||
Shenzhen Pinghu Qun Yi Railway Store Loading and Unloading Company Limited |
PRC | 100 | % | |||||
Guangshen Railway Economic and Trade Enterprise Company Limited |
PRC | 100 | % | |||||
Shenzhen Railway Station Passenger Services Company Limited |
PRC | 100 | % | |||||
Guangzhou Railway Huangpu Service Company Limited |
PRC | 100 | % | |||||
Zengcheng Lihua Stock Company Limited (1) |
PRC | 44.7 | % |
(1) | 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. |
D. |
Property, Plant and Equipment |
ITEM 4A. |
UNRESOLVED STAFF COMMENTS |
ITEM 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. |
Operating Results |
Year Ended December 31, |
Change from |
|||||||||||
2020 |
2021 |
2020 to 2021 |
||||||||||
Revenue from passenger transportation (RMB thousands) |
4,114,522 | 6,169,109 | 2,054,587 | |||||||||
Total passengers (thousands) |
42,853 | 40,778 | (2,075 | ) | ||||||||
Total passenger-kilometers (millions) |
12,931 | 12,054 | (877 | ) | ||||||||
Revenue per passenger-kilometer (RMB) |
0.32 | 0.51 | 0.19 |
Year Ended December 31, |
Change from |
|||||||||||
2020 |
2021 |
2020 to 2021 |
||||||||||
Revenue from freight transportation (RMB millions) |
1,698.58 | 2,035.44 | 336.86 | |||||||||
- Revenue from freight charges |
1,456.61 | 1,701.85 | 245.24 | |||||||||
- Revenue from other freight transportation services |
241.97 | 333.59 | 91.62 | |||||||||
Outbound freight volume (millions of tonnes) |
16.27 | 18.83 | 2.56 | |||||||||
Revenue per tonne (RMB) (1) |
89.50 | 90.38 | 0.88 | |||||||||
Total tonne-kilometers (millions) |
131,866.78 | 149,734.69 | 17,867.91 | |||||||||
Revenue per tonne-kilometer (RMB) (2) |
0.013 | 0.014 | 0.001 |
(1) | Revenue per tonne is calculated by dividing revenues from freight charges by total tonnage of outbound freight. |
(2) | Revenue per tonne-kilometer is calculated by dividing total freight revenue by total tonne-kilometers. |
Year Ended December 31, |
||||||||
2020 |
2021 |
|||||||
Railroad and related business revenue (RMB millions) |
15,385.4 | 19,019.1 | ||||||
Business tax and surcharge |
0.2 | % | 0.2 | % | ||||
Employee benefits |
46.7 | % | 42.8 | % | ||||
Equipment leases and services |
32.3 | % | 35.5 | % | ||||
Materials and supplies |
6.9 | % | 6.3 | % | ||||
Repairs and facilities maintenance costs, excluding materials and supplies |
7.5 | % | 6.3 | % | ||||
Depreciation of right-of-use assets |
0.4 | % | 0.3 | % | ||||
Depreciation of fixed assets |
10.6 | % | 9.2 | % | ||||
Cargo logistics and outsourcing service charges |
3.0 | % | 3.1 | % | ||||
Utility and office expenses |
0.6 | % | 0.5 | % | ||||
Others |
3.9 | % | 3.5 | % | ||||
Operating expenses ratio |
112.1 | % | 107.7 | % | ||||
Railroad and related business operating margin (1) |
(12.1 | %) | (7.7 | %) |
Year Ended December 31, |
Change from |
|||||||||||
2019 |
2020 |
2019 to 2020 |
||||||||||
Revenue from passenger transportation (RMB thousands) |
8,009,590 | 4,114,522 | (48.6 | %) | ||||||||
Total passengers (thousands) |
85,130 | 42,853 | (49.7 | %) | ||||||||
Total passenger-kilometers (millions) |
24,058 | 12,931 | (46.3 | %) | ||||||||
Revenue per passenger-kilometer (RMB) |
0.33 | 0.32 | (3.0 | %) |
Year Ended December 31, |
Change from |
|||||||||||
2019 |
2020 |
2019 to 2020 |
||||||||||
Revenue from freight transportation (RMB millions) |
2,112.60 | 1,698.58 | (19.6 | %) | ||||||||
- Revenue from freight charges |
1,740.91 | 1,456.61 | (16.3 | %) | ||||||||
- Revenue from other freight transportation services |
371.69 | 241.97 | (34.9 | %) | ||||||||
Outbound freight volume (millions of tonnes) |
16.24 | 16.27 | (0.2 | %) | ||||||||
Revenue per tonne (RMB) (1) |
107.20 | 89.50 | (16.5 | %) | ||||||||
Total tonne-kilometers (millions) |
149,983.69 | 131,866.78 | (12.1 | %) | ||||||||
Revenue per tonne-kilometer (RMB) (2) |
0.014 | 0.013 | (7.1 | %) |
(1) | Revenue per tonne is calculated by dividing revenues from freight charges by total tonnage of outbound freight. |
(2) | Revenue per tonne-kilometer is calculated by dividing total freight revenue by total tonne-kilometers. |
Year Ended December 31, |
||||||||
2019 |
2020 |
|||||||
Railroad and related business revenue (RMB millions) |
20,025.6 | 15,385.4 | ||||||
Business tax and surcharge |
0.3 | % | 0.2 | % | ||||
Employee benefits |
37.5 | % | 46.7 | % | ||||
Equipment leases and services |
28.5 | % | 32.3 | % | ||||
Materials and supplies |
7.1 | % | 6.9 | % | ||||
Repairs and facilities maintenance costs, excluding materials and supplies |
5.4 | % | 7.5 | % | ||||
Depreciation of right-of-use assets |
0.3 | % | 0.4 | % | ||||
Depreciation of fixed assets |
8.1 | % | 10.6 | % | ||||
Cargo logistics and outsourcing service charges |
1.1 | % | 3.0 | % | ||||
Utility and office expenses |
0.7 | % | 0.6 | % | ||||
Others |
5.7 | % | 3.9 | % | ||||
Operating expenses ratio |
94.6 | % | 112.1 | % | ||||
Railroad and related business operating margin (1) |
5.4 | % | (12.1 | %) |
B. |
Liquidity and Capital Resources |
• | capital expenditures for the purchase of fixed assets and construction in progress of approximately RMB1,060.3 million, representing an increase of 24.2% from RMB853.3 million in 2020. |
• | the improvements in system adaptability of the traction pow |
• | er supply system for the Pingshi to Guangzhou section of the Beijing- Guangzhou line; |
• | the reconstruction of automatic blocking and computer inter-locking equipment for the Guangzhou to Pingshi section of the Beijing- Guangzhou Railway line; |
• | construction of video surveillance system in key areas of the Guangzhou to Pingshi section of the Beijing-Guangzhou line and the Guangzhou-Shenzhen line; |
• | the maintenance, installation and renovation of existing locomotives, trains and EMUs in 2021; and |
• | overhaul of line equipment (replacement of rails, sleepers). |
Year Ended December 31, |
Change from |
|||||||||||||||
2019 |
2020 |
2021 |
2020 to 2021 |
|||||||||||||
(RMB thousands) |
||||||||||||||||
Net cash generated from operating activities |
2,395,245 | 1,336,173 | 1,002,468 | (333,705 | ) | |||||||||||
Net cash used in investing activities |
(2,087,032 | ) | (927,513 | ) | (926,112 | ) | 1,401 | |||||||||
Net cash used in financing activities |
(484,632 | ) | (485,762 | ) | (62,126 | ) | 423,636 | |||||||||
Net (decrease)/ increase in cash and cash equivalents |
(176,419 | ) | (77,102 | ) | 14,230 | 91,332 |
Payment Due by Period (RMB) thousands |
||||||||||||||||||||
Less than |
More than |
|||||||||||||||||||
Total |
1 year |
1-3 years |
3-5 years |
5 years |
||||||||||||||||
Contractual Obligations |
||||||||||||||||||||
Capital Expenditure Obligation (1) |
46,553 | 46,553 | — | — | — | |||||||||||||||
Lease liabilities (2) |
5,925,660 | 63,249 | 129,941 | 134,020 | 5,598,450 | |||||||||||||||
Total |
5,972,213 | 109,802 | 129,941 | 134,020 | 5,598,450 |
(1) | See Note 40(a) to our audited consolidated financial statements, “Capital Commitments.” |
(2) | See Note 8 “Right-of-Use Assets and Lease Liabilities” to our audited consolidated financial statements. |
• | Adaptive transformation of power supply network of Guangzhou to Pingshi section of Beijing-Guangzhou Line; |
• | construction of video surveillance system in key areas of the Guangzhou to Pingshi section of the Beijing-Guangzhou Line, and; |
• | transformation of the main line of traction power supply and related equipment and facilities of Guangzhou-Shenzhen Line. |
C. |
Research and Development, Patents and Licenses, etc. |
D. |
Trend Information |
E. |
Critical Accounting Estimates |
(a) |
Revenue from Railroad and Related Business |
(b) |
Revenue from Other Businesses |
Buildings (Note a) |
20 to 40 years | |||
Track, bridges and service roads (Note a) |
16 to 100 years | |||
Locomotives and rolling stock |
20 years | |||
Communications and signaling systems |
8 to 20 years | |||
Other machinery and equipment |
4 to 25 years |
(a) |
Current Income Tax |
(b) |
Deferred Income Tax |
(c) |
Offsetting |
(a) |
Defined Contribution Plan |
(b) |
Termination Benefits |
• | Covid-19-Related Rent Concessions – amendments to IFRS 16; and |
• | Interest Rate Benchmark Reform Phase 2 – Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. |
ITEM 6. |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. |
Directors and Senior Management |
Name |
Age |
Position |
Date First Elected or Appointed |
|||||||||||
Wu Yong |
58 | Chairman of the Board of Directors and Executive Director | 2014 | |||||||||||
Hu Lingling |
58 | Executive Director | 2016 | |||||||||||
Guo Jiming |
54 | Non-executive Director |
2019 | |||||||||||
Hu Dan |
50 | Non-executive Director |
2021 | |||||||||||
Zhang Zhe |
50 | Non-executive Director |
2019 | |||||||||||
Zhou Shangde |
52 | Executive Director | 2021 | |||||||||||
Frederick Ma Si-Hang |
70 | Independent Non-executive Director |
2020 | |||||||||||
Tang Xiaofan |
53 | Independent Non-executive Director |
2020 | |||||||||||
Qiu Zilong |
55 | Independent Non-executive Director |
2020 |
Name |
Age |
Position |
Date First Elected or Appointed |
|||||||||||
Lei Chunliang |
59 | Chairman of the supervisory committee | 2021 | |||||||||||
Chen Shaohong |
55 | Supervisor | 2008 | |||||||||||
Xiang Lihua |
48 | Supervisor | 2019 | |||||||||||
Meng Yong |
54 | Supervisor | 2019 | |||||||||||
Huang Songli |
47 | Deputy Secretary of the party committee Supervisor | 2021 | |||||||||||
Lin Wensheng |
57 | Supervisor | 2020 |
Name |
Age |
Position |
Date First Elected or Appointed |
|||||||||||
Hu Lingling |
58 | General Manager | 2015 | |||||||||||
Gong Yuwen |
55 | Deputy Secretary of the Party Committee, and Secretary of the Discipline Inspection Commission | 2018 | |||||||||||
Huang Songli |
46 | Chairman of Labor Union, and Deputy General Manager | 2021 | |||||||||||
Luo Jiancheng |
49 | Deputy General Manager | 2016 | |||||||||||
Tang Xiangdong |
53 | Deputy General Manager, and Secretary of the Board | 2019 | |||||||||||
Luo Xinpeng |
56 | Chief Accountant | 2019 |
Name |
Position | |
Wu Yong | Chairman of the Board of Directors and Secretary of the Party Committee of: China Railway Guangzhou Group Co., Ltd. Chairman of the Board of Directors: Qian Zhang Chang Railway Company Limited Huai Shao Heng Railway Co., Ltd. | |
Guo Jiming | Chief Accountant and Director of: China Railway Guangzhou Group Co., Ltd. Vice Chairman of the Board of: Wuhan-Guangzhou Passenger Railway Line Co., Ltd. Chairman of the Board of: Guangdong Railway Company Limited Shichang Railway Company Limited Director of: Hukun Passenger Railway Line (Hunan) Company Limited Chairman of the Supervisory Committee of: Guangdong Guangzhu Intercity Rail Transportation Company Limited Guangdong Pearl River Delta Intercity Railway Traffic Company Limited Hainan Railway Company Limited | |
Hu Dan | Vice Chairman of the Board of: Shenzhen Pingnan Railway Company Limited Director of: Shichang Railway Company Limited Supervisor of: Hunan Intercity Railway Company Limited Guangdong Pearl River Delta Intercity Railway Traffic Company Limited | |
Zhang Zhe | Chief of Passenger Transport Department of: China Railway Guangzhou Group Co., Ltd. Director of: Guangdong Tieqing International Travel Agency Company Limited Supervisor of: Beijing Zhongtie Commemorate Ticket Co., Ltd. Fredrick Ma Si- Hang | |
Frederick Ma Si-Hang |
Director of: COSCO SHIPPING Holdings Co., Ltd. FWD Group Limited HH&L Acquisition Co. Unicorn II Holdings Limited |
Name |
Position | |
Tang Xiaofan | Managing Director of: Guangzhou Dening Investment Management Co., Ltd. | |
Qiu Zilong | General Manager of: Shenzhen Changshang Investment Management Co., Ltd. Shenzhen Beida Soft Bank Investment Corporation Limited | |
Lei Chunliang | Chairman of Supervisory Committee of: China Railway Guangzhou Group Co., Ltd. | |
Chen Shaohong | Chief Legal Advisor of: China Railway Guangzhou Group Co., Ltd. Chairman of Supervisory Committee of: Shichang Railway Company Limited Hukun Passenger Railway Line (Hunan) Company Limited Director of: Guangdong Railway Company Limited Hainan Railway Company Limited Xiamen-Shenzhen Railway Company Limited Guangdong Meizhou-Shantou Passenger Railway Line Company Limited | |
Xiang Lihua |
Director (Chief) of Human Resources Department (Party committee organization) of: China Railway Guangzhou Group Co., Ltd. | |
Meng Yong |
Chief of the Finance Department (Income Department): China Railway Guangzhou Group Co., Ltd. Director of: Hong Kong Qiwen Trade Company Limited Chairman of the Supervisory Committee of: Wuhan-Guangzhou Passenger Railway Line Co., Ltd.Guangdong Railway Company Limited Supervisor of: Hukun Passenger Railway Line (Hunan) Company Limited Huai Shao Heng Railway Co., Ltd. | |
Luo Jiancheng |
Chairman of the Board of: Dongguan Changsheng Enterprise Company Limited Shenzhen Pinghu Qun Yi Railway Store Loading and Unloading Company Limited Shenzhen Guangshen Railway Economic and Trade Enterprise Company Limited Zengcheng Lihua Stock Company Limited Director of: Guangzhou Tiecheng Enterprise Company Limited | |
Luo Xinpeng |
Director of: Guangzhou Tiecheng Enterprise Company Limited |
B. |
Compensation |
Name |
Position |
Total remuneration received from the Company (before tax) during the reporting period (RMB thousand) |
||||
Wu Yong |
Chairman of the Board of Directors and Executive Director | — | ||||
Hu Lingling |
Executive Director and General Manager | 611 | ||||
Guo Xiangdong* |
Executive Director | 106 | ||||
Zhou Shangde |
Executive Director | 413 | ||||
Guo Jiming |
Non-executive Director |
— | ||||
Hu Dan |
Non-executive Director |
— | ||||
Wang Bin* |
Non-executive Director |
— | ||||
Zhang Zhe |
Non-executive Director |
— | ||||
Frederick Ma Si-Hang |
Independent Non-executive Director |
139 | ||||
Tang Xiaofan |
Independent Non-executive Director |
112 | ||||
Qiu Zilong |
Independent Non-executive Director |
112 | ||||
Liu Mengshu* |
Chairman of the Supervisory Committee | — | ||||
Xiang Lihua |
Supervisor Representing Shareholder | — | ||||
Chen Shaohong |
Supervisor Representing Shareholder | — | ||||
Meng Yong |
Supervisor Representing Shareholder | — | ||||
Zhou Shangde |
Supervisor Representing Employees | 413 | ||||
Lin Wensheng |
Supervisor Representing Employees | 415 | ||||
Gong Yuwen |
Deputy Secretary of the Party and Working Committee, and Secretary of the Discipline | 474 | ||||
Luo Jiancheng |
Deputy General Manager | 472 | ||||
Tang Xiangdong |
Deputy General Manager and Secretary of the Board | 480 | ||||
Luo Xinpeng |
Chief Accountant | 474 | ||||
Total: |
4,221 |
Note: | (1) During the reporting period, other than Guo Xiangdong (who held 80,000 shares), none of the directors, supervisors, or senior management of the Company has held or dealt in shares of the Company, or has held options to buy Company shares or has been granted any shares with selling restrictions. |
(2)* | means that the person resigned during the reporting period. |
Name of Director |
Name of the Company / Associated Corporation |
Capacity and Nature of Interest |
Number and Class of Shares Held |
Percentage of Shareholding in the Total Share Capital of the Company (%) |
Percentage of Shareholding in the Relevant Class of Shares of the Company (%) |
Long/Short Position | ||||||||||
Guo Xiangdong |
The Company | Beneficial owner | A Shares: 80,000 shares | 0.0011 | 0.0014 | Long position | ||||||||||
Xiang Lihua |
The Company | Interest of Spouse | A shares: 18,200 shares | 0.00026 | 0.00032 | Long position |
C. |
Board Practices |
• | to examine our Company’s financial situation; |
• | to supervise the performance of duties of the directors, general manager, deputy general managers and other senior management; |
• | to propose the dismissal of directors, general managers, deputy general managers and other senior management who have violated any law, administrative regulations, the Articles of Association or resolutions of the shareholders’ general meetings; |
• | to demand a director, general manager, deputy general manager or any other senior management to rectify such breach when the acts of such persons are harmful to our Company’s interest; |
• | to propose the convening of shareholders’ general meetings, and to convene and chair the shareholders’ general meetings if the board of directors fails to perform this duty as stipulated in the Articles of Association; |
• | to propose motions to shareholders’ general meetings; and |
• | to initiate legal proceedings against any director, general manager, deputy general manager and other senior management in accordance with Article 151 of the Company Law of the PRC. |
• | reviewing the annual financial statements and interim financial statements of our Company, including the disclosures made by our |
• | Company in this annual report; |
• | reviewing the financial reports and the reports of our Company prepared by the independent auditor and its supporting documents, including the review of the internal control and disclosure controls and procedures, and to discuss with the auditor the annual audit plan and solutions to problems in the previous year; |
• | reviewing and approving the selection of and remuneration paid to the independent auditor; |
• | pursuant to the resolutions of the annual general meeting, determining with the Board of Directors the annual auditing fees paid to our independent auditor; |
• | reviewing with the management and the independent auditor the performance, adequacy and effectiveness of the internal controls and risk management, as well as any material deficiencies and weakness existing in the internal controls; |
• | evaluating our Company’s performance in complying with industrial practices, market rules, and statutory duties, and the safeguarding of its own interests and the interests of its shareholders; |
• | considering and determining whether any senior executive officer or senior financial personnel is in violation of their code of conduct, and the consequences for such a violation; and |
• | overseeing the management of the retirement pension fund of our Company. |
D. |
Employees |
Function |
Employees |
|||
Passenger and freight transportation and transit operation personnel (1) (2) (3) |
18,283 | |||
Engineering personnel (4) |
5,547 | |||
Driving personnel (5) |
3,496 | |||
Public works personnel (6) |
3,431 | |||
Electricity personnel (7) |
2,009 | |||
Electricity and water supplies personnel (8) |
2,319 | |||
Building construction personnel (9) |
1,226 | |||
Various operations and other employees of subsidiaries (10) |
107 | |||
Technical and administrative personnel (11) |
4,198 | |||
Total |
40,616 |
(1) | Passenger transportation personnel mean those people that provide station boarding and train services and those people responsible for organization of freight transportation. |
(2) | Freight transportation personnel mean those people responsible for organization of freight transportation. |
(3) | Transit operation personnel mean those people responsible for providing station-boarding services. |
(4) | Engineering personnel mean those people responsible for locomotive operation and overhaul. |
(5) | Driving personnel mean those people responsible for vehicle operation and overhaul. |
(6) | Public works personnel mean those people responsible for station track and railroad switch maintenance. |
(7) | Electricity personnel mean those people responsible for signal equipment maintenance. |
(8) | Electricity and water supplies personnel mean those people responsible for catenary operation and overhaul as well as power and water consumption maintenance. |
(9) | Building construction personnel mean those people responsible for construction, apartments and dining halls. |
(10) | Various operations and other employees of subsidiaries mean all personnel involved in diversified businesses. |
(11) | Technical and administrative personnel mean all managerial personnel other than the personnel of diversified businesses. |
E. |
Share Ownership |
ITEM 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. |
Major Shareholders |
Name of Shareholders |
Type of Shares |
Number of Shares Held |
Shareholder Percentage % |
|||||||||||
Public Shareholders of H shares (including ADSs) |
H shares | 1,431,300,000 | 20.2 | |||||||||||
China Railway Guangzhou Group Co., Ltd. |
A shares | 2,629,451,300 | 37.1 | |||||||||||
Other Public Shareholders of A shares |
A shares | 3,022,785,700 | 42.7 | |||||||||||
|
|
|
|
|||||||||||
Total |
7,083,537,000 |
100.0 |
Title of Class |
Identity of Person or Group |
Amount Owned |
Percentage of Class of Shares |
Percent of Total Capital |
||||||||||
Ordinary Shares (A shares) |
GRGC |
2,629,451,300 | 46.52 | %(L) | 37.12 | %(L) |
Identity of Person or Group |
Shares Owned |
Percentage of H Shares |
Percentage of Total Capital |
|||||||||
Pacific Asset Management Co., Ltd. (1) |
168,626,000 | (L) | 11.78 | %(L) | 2.38 | %(L) | ||||||
Kopernik Global Investors LLC. (2) |
128,977,054 | (L) | 9.01 | %(L) | 1.82 | %(L) | ||||||
Pandanus Associates Inc. (3) |
98,026,000 | (L) | 6.85 | %(L) | 1.38 | %(L) | ||||||
Brown Brothers Harriman & Co. (4) |
|
85,506,000 85,506,000 |
(L) (P) |
|
5.97 5.97 |
%(L) %(P) |
|
1.21 1.21 |
%(L) %(P) |
(1) | Pacific Asset Management Co., Ltd. was not a Major Shareholder as of April 18, 2018 or April 18, 2019 and was a Major Shareholder of 229,188,000 or 16% (L) of our H shares and 3.2% (L) as of March 31, 2020, and was a Major Shareholder of 212,956,000 or 14.88% (L) of our H shares and 3.01% (L) of our total capital as of March 31, 2022. |
(2) | Kopernik Global Investors LLC was a Major Shareholder of 108,763,554 or 7.6% (L) of our H Shares and 1.5% (L) of our total capital as of April 18, 2019 and was a Major Shareholder of 108,799,054 or 7.6% (L) of our H Shares and 1.5% (L) of our total capital as of March 31, 2020 and was a Major Shareholder of 128,977,054 or 9.01% (L) of our H Shares and 1.82% (L) of our total capital as of March 31, 2022. |
(3) | Pandanus Associates Inc. was a Major Shareholder of 143,718,000 or 10.0% (L) of our H Shares and 2.0% (L) of our total capital as of April 18, 2019 and March 31, 2020 and was a Major Shareholder of 142,946,000 or 9.99% (L) of our H shares and 2.02% (L) of our total capital as of March 31, 2022. |
(4) | Brown Brothers Harriman & Co. was not a Major Shareholder as of April 18, 2019 and was a Major Shareholder of 143,263,200 or 10% (L) of our H Shares and 2.02% of our total capital as of March 31, 2020, and was a Major Shareholder of 85,506,000 or 5.97% (L) of our H Shares and 1.21% of our total capital as of March 31, 2022. |
B. |
Related Party Transactions |
Name of Related Parties |
Relationship with Us | |
Single largest shareholder and its subsidiaries |
||
Guangzhou Railway Group | Single largest shareholder | |
Guangdong Yangcheng Railway Enterprise Co., Ltd. | Subsidiary of the single largest shareholder | |
Guangdong Railway Company Limited | Subsidiary of the single largest shareholder | |
GIDC | Subsidiary of the single largest shareholder | |
Guangzhou Railway Material Supply Company | Subsidiary of the single largest shareholder | |
Guangzhou Railway Station Service Center | Subsidiary of the single largest shareholder | |
Guangzhou Yuetie Operational Development Company | Subsidiary of the single largest shareholder | |
Guangzhou Railway Rolling Stock Works Company Limited | Subsidiary of the single largest shareholder | |
Guangdong Tieqing International Travel Agency Company Limited | Subsidiary of the single largest shareholder | |
Xiashen Railway Guangdong Company Limited | Subsidiary of the single largest shareholder | |
Guangzhou Railway Real Estate Construction Engineering Co., Ltd. | Subsidiary of the single largest shareholder | |
Guangdong Yuetong Railway Logistics Company Limited | Subsidiary of the single largest shareholder | |
Sanmao Railway Company Xiaotangxi Freight Field Service Company | Subsidiary of the single largest shareholder | |
Guangzhou Anmao Railway Consulting Construction Company Limited | Subsidiary of the single largest shareholder | |
Guangzhou Beiyang Information Technology Company Limited | Subsidiary of the single largest shareholder | |
Guangzhou Railway Technology Development Surveying Co., Ltd. | Subsidiary of the single largest shareholder | |
Hunan Railway Lianchuang Technology Development Co., Ltd. | Subsidiary of the single largest shareholder | |
Guangzhou Northeast Freight Car Outer Winding Railway Co., Ltd. | Subsidiary of the single largest shareholder | |
Hunan Changtie Loading & Unloading Co., Ltd. | Subsidiary of the single largest shareholder | |
Guangzhou Ruiwei Economy Development Co., Ltd. | Subsidiary of the single largest shareholder | |
Guangzhou Railway Technology Development Co., Ltd. | Subsidiary of the single largest shareholder | |
Associates of the Group |
||
Tiecheng | Associate of the Group | |
Shentu | Associate of the Group |
(a) | Mutual provision of railway transportation services, which comprise: |
(i) | production co-ordination, safety management and dispatching services; |
(ii) | application and rental services of railway infrastructure and transportation equipment; |
(iii) | railway communication services; |
(iv) | railway network services (including but not limited to passenger services, water to supply in trains, use of railway lines, traction and electricity supply for locomotives and ticket services); |
(v) | crew services; and |
(vi) | leaning services of locomotives, trains and railway stations. |
(b) | Mutual provisions of railway-related services, which comprise: |
(i) | repair services of railway infrastructure and equipment; |
(ii) | repair services of locomotives and trains; |
(iii) | procurement and sales services of railway related materials; |
(iv) | security services; |
(v) | hygiene and epidemic prevention services; |
(vi) | property management and building maintenance services; and |
(vii) | project construction, management and supervision services. |
(c) | We will provide special entrusted railway transportation services to the CSRG Group, which include but are not limited to: |
(i) | operation and management of passengers and freight transportation and related services; and |
(ii) | repair services of transportation facilities and equipment. |
(d) | Mutual provision of miscellaneous services between us and the CSRG Group that are necessary for the proper functioning of railway transportation and operation. |
(a) | the prices as determined by the PRC government; |
(b) | if the prices are not specified by the PRC government, the prices will be determined in accordance with the pricing standards and rules of national railways within the guidance prices set by the PRC government; |
(c) | if the prices are not specified by the PRC government and the PRC government has not set applicable guidance prices, the prices shall be determined in accordance with the applicable industry price settlement rules; |
(d) | except for applying the prices specified by the PRC government, the guidance prices set by the PRC government and the industry settlement rules, if there are comparable market prices or pricing standards, priority shall be given to such market prices or pricing standards as reference points to determine the prices upon negotiation; |
(e) | if none of the above-mentioned pricing standards is available, the prices shall be determined with reference to the prices of non-connected transactions between the connected parties and independent third parties; and |
(f) | if neither comparable market prices nor prices of non-connected transactions are available for reference, the prices shall be determined upon negotiation according to the aggregate of the total actual costs for providing the relevant services, reasonable profits and taxes and additional charges paid. |
Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB thousands) |
||||||||||||
Provision of Services and Sales of Goods |
||||||||||||
Railroad and Related Business |
||||||||||||
Provision of train transportation services to GRGC and its subsidiaries (i) |
2,060,518 | 2,345,512 | 3,323,844 | |||||||||
Revenue collected by CSRG for railway network usage and related services provided to GRGC and its subsidiaries (ii) |
1,563,191 | 1,332,346 | 1,325,614 | |||||||||
Revenue from railway operation service provided to GRGC’s subsidiaries (iii) |
812,470 | 842,350 | 865,220 | |||||||||
|
|
|
|
|
|
|||||||
4,436,179 | 4,520,208 | 5,514,678 | ||||||||||
|
|
|
|
|
|
|||||||
Other Businesses |
||||||||||||
Sales of materials and supplies to GRGC and its subsidiaries (iv) |
45,642 | 34,705 | 89,042 | |||||||||
Services Received and Purchases Made |
||||||||||||
Railroad and Related Business |
||||||||||||
Provision of train transportation services by GRGC and its subsidiaries (i)(vi) |
774,291 | 753,288 | 796,142 | |||||||||
Cost settled by the CSRG for railway network usage and related services provided by GRGC and its subsidiaries (ii) |
2,194,467 | 1,985,768 | 2,896,222 | |||||||||
|
|
|
|
|
|
|||||||
2,968,758 | 2,739,056 | 3,692,364 | ||||||||||
|
|
|
|
|
|
|||||||
Other Businesses |
||||||||||||
Provision of repair and maintenance services by GRGC and its subsidiaries (iv) |
441,719 | 297,809 | 311,080 | |||||||||
Purchase of materials and supplies from GRGC and its subsidiaries (iv) |
623,433 | 722,487 | 770,683 | |||||||||
Provision of construction services by GRGC and its subsidiaries (v) |
363,424 | 285,616 | 172,592 | |||||||||
|
|
|
|
|
|
|||||||
1,428,576 | 1,305,912 | 1,254,355 | ||||||||||
|
|
|
|
|
|
(i) | The service charges are determined based on a pricing scheme set by the CSRG or based on negotiation between the contracting parties with reference to actual cost incurred. |
(ii) | Such revenues/charges are determined by the CSRG 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 explicitly agreed between both contract parties. |
(iv) | The prices are determined based on mutual negotiation between the contracting parties with reference to actual cost incurred. |
(v) | Based on construction ammmt determined illlder national railway engineering guidelines. |
(vi) | The amount recognized in 2021 does not include the payment of short term leases related to the lease of passenger trains paid to Guangzhou Railway Group amounting to RMB400.5 million. |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB thousands) |
||||||||
Trade receivables |
1,853,846 | 2,881,069 | ||||||
- GRGC (i) |
208,024 | 600,042 | ||||||
- Subsidiaries of GRGC (i) |
1,645,822 | 2,281,027 | ||||||
- Associates |
— | — |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB thousands) |
||||||||
Prepayments and other receivables |
59,580 | 83,808 | ||||||
- GRGC |
431 | 1,944 | ||||||
- Subsidiaries of GRGC |
59,070 | 81,790 | ||||||
- Associates |
79 | 74 | ||||||
Prepayments for fixed assets and construction-in-progress |
— | 7,270 | ||||||
- Subsidiaries of GRGC (ii) |
— | 7,270 | ||||||
- Associates |
— | — | ||||||
Trade and bills payables |
1,243,372 | 1,882,872 | ||||||
- GRGC (i) |
67,889 | 71,414 | ||||||
- Subsidiaries of GRGC (ii) |
1,145,025 | 1,730,317 | ||||||
- Associates |
30,458 | 81,141 | ||||||
Payables for fixed assets and construction-in-progress |
876,031 | 1,038,742 | ||||||
- GRGC |
111,799 | 334,313 | ||||||
- Subsidiaries of GRGC |
342,123 | 326,023 | ||||||
- Associates |
422,109 | 378,406 | ||||||
Contract liabilities |
436 | 4,346 | ||||||
- Subsidiaries of GRGC |
297 | 3,940 | ||||||
- Associates |
139 | 406 | ||||||
Accruals and other payables |
443,754 | 495,930 | ||||||
- GRGC |
4,379 | 8,600 | ||||||
- Subsidiaries of GRGC (iii) |
426,821 | 468,064 | ||||||
- Associates (iv) |
12,554 | 19,266 |
(i) | The trade balances due from/to GRGC, subsidiaries of GRGC 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 balances due to subsidiaries of GRGC 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 GRGC 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. |
Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB thousands) |
||||||||||||
Provision of Services and Sales of Goods |
||||||||||||
Railroad and Related Business |
||||||||||||
Provision of train transportation services to CSRG Group (i) |
69,958 | 57,349 | 138,219 | |||||||||
Revenue collected by CSRG for services provided to the CSRG Group (ii) |
2,479,015 | 2,105,206 | 2,275,132 | |||||||||
Revenue from railway operation service provided to the CSRG Group (iii) |
2,392,333 | 2,214,460 | 2,232,346 | |||||||||
|
|
|
|
|
|
|||||||
4,941,306 | 4,377,015 | 4,645,697 | ||||||||||
|
|
|
|
|
|
|||||||
Other Businesses |
||||||||||||
Provision of repairing services for cargo trucks to the CSRG Group (ii) |
370,990 | 436,955 | 470,143 | |||||||||
Sales of materials and supplies to the CSRG Group (iv) |
8,330 | — | — | |||||||||
Provision of apartment leasing services to the CSRG Group (iv) |
574 | 456 | 2,064 | |||||||||
Others |
— | 887 | 607 | |||||||||
|
|
|
|
|
|
|||||||
379,894 | 438,298 | 472,814 | ||||||||||
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB thousands) |
||||||||||||
Services Received and Purchases Made |
||||||||||||
Railroad and Related Business |
||||||||||||
Provision of train transportation services by the CSRG Group (i)(vi) |
37,408 | 18,872 | 58,121 | |||||||||
Cost settled by CSRG for services provided by the CSRG Group (ii)(vi) |
2,107,765 | 1,506,541 | 1,769,170 | |||||||||
|
|
|
|
|
|
|||||||
2,145,173 | 1,525,413 | 1,827,291 | ||||||||||
|
|
|
|
|
|
|||||||
Other Businesses |
||||||||||||
Provision of repair and maintenance services by the CSRG Group (iv) |
29,066 | 28,928 | 28,185 | |||||||||
Purchase of materials and supplies from the CSRG Group (iv) |
23,968 | 12,362 | 3,203 | |||||||||
Provision of construction services by the CSRG Group (v) |
23,636 | 2,662 | — | |||||||||
|
|
|
|
|
|
|||||||
76,670 | 43,952 | 31,388 | ||||||||||
|
|
|
|
|
|
(i) | The service charges are determined based on a pricing scheme set by the CSRG or based on negotiation between the contracting parties with reference to actual costs incurred. |
(ii) | Such revenues/charges are determined by the CSRG 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 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) | Based on construction amounts determined under national railway engineering guidelines. |
(vi) | The amount recognized in 2021 does not include the payment of short term leases related to the lease of passenger trains and freight trains to CSRG amounting to RMB1,286,566,000. |
Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB thousands) |
||||||||||||
Passenger transportation |
7,475,003 | 3,769,231 | 6,054,100 | |||||||||
Freight transportation |
1,740,907 | 1,456,605 | 1,701,842 | |||||||||
Other transportation related services |
74,870 | 24,048 | 8,488 | |||||||||
|
|
|
|
|
|
|||||||
9,290,780 | 5,249,884 | 7,764,430 | ||||||||||
|
|
|
|
|
|
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB thousands) |
||||||||
Due from the CSRG Group |
||||||||
Trade receivables |
1,101,951 | 783,707 | ||||||
Other receivables |
183,021 | 87,251 | ||||||
Due to the CSRG Group |
||||||||
Trade payables and payables for fixed assets and construction-in-progress |
71,082 | 114,481 | ||||||
Other payables |
4,564 | 91,737 |
C. |
Interests of Experts and Counsel |
ITEM 8. |
FINANCIAL INFORMATION |
A. |
Consolidated Statements and Other Financial Information |
• | net after-tax income determined in accordance with PRC accounting standards and regulations; and |
• | net after-tax income determined in accordance with either international accounting standards or the accounting standards of the countries in which our shares are listed. |
B. |
Significant Changes |
ITEM 9. |
THE OFFER AND LISTING |
A. |
Offer and Listing Details |
B. |
Plan of Distribution |
C. |
Markets |
D. |
Selling Shareholders |
E. |
Dilution |
F. |
Expenses of the Issue |
ITEM 10. |
ADDITIONAL INFORMATION |
A. |
Share Capital |
B. |
Memorandum and Articles of Association |
• | relevant transfer fees have been paid, if any; |
• | the instrument of transfer only involves H shares; |
• | the stamp duty chargeable on the instrument of transfer has been paid; |
• | the relevant share certificate and, upon the reasonable request of the board of directors, any evidence in relation to the right of the transferor to transfer the shares have been submitted; |
• | if the shares are being transferred to joint owners, the maximum number of joint owners does not exceed four; and |
• | we do not have any lien on the relevant shares. |
• | PRC accounting standards and regulations; and |
• | international accounting standards or the accounting standards of the countries in which our shares are listed. |
• | making up losses; |
• | allocations to the statutory common reserve fund; |
• | allocations to the discretionary common reserve fund upon the approval of shareholders at a general meeting; and |
• | payment of dividends in respect of ordinary shares. |
• | the number of directors falls short of the number stipulated in the Company Law of China or our by-laws or is below two-thirds of the number required in our Articles of Association; |
• | our unrecovered losses that have not been made up amount to one-third of our paid-in share capital; |
• | shareholder(s), severally or jointly, who, for ninety consecutive days, hold 10% or more of our issued shares carrying the right to vote make a request in writing to convene an extraordinary general meeting; |
• | the board of directors considers it necessary; or |
• | the supervisory committee proposes to convene such a meeting. |
• | be given by way of public notice or other means as specified under our Articles of Association; |
• | specify the place, date and the time of the meeting; |
• | state the motions to be discussed at the meeting; |
• | provide such information and explanations as are necessary for the shareholders to exercise an informed judgment on the proposals before them. Without limiting the generality of the foregoing, where a proposal is made to merge our Company with another entity, to repurchase the shares of our Company, to reorganize its share capital or to restructure our Company in any other way, the terms of the proposed transaction must be provided in detail, together with copies of the proposed agreement, if any, and the cause and effect of the proposal must be properly explained; |
• | contain disclosure of the nature and extent, if any, of material interests of any director, supervisor, general manager, deputy general manager or other senior officers of our Company in the transaction proposed and the effect of the proposed transaction on them in their capacity as shareholders in so far as it is different from the effect on the interests of other shareholders of the same class; |
• | contain the full text of any special resolution proposed to be approved at the meeting; |
• | contain conspicuously a statement that a shareholder entitled to attend and vote is entitled to appoint one or more proxies to attend and vote instead of him or her and that a proxy need not also be a shareholder; and |
• | state the time within which and the address to which voting proxies for the meeting are to be delivered. |
• | work reports of the board of directors and the supervisory committee; |
• | profit distribution proposals and loss recovery proposals formulated by the board of directors; |
• | removal of members of the board of directors and the supervisory committee, their remuneration and methods of payment; |
• | our annual financial budget, final accounts, balance sheet, income statement and other financial statements; and |
• | matters other than those that are required by laws, administrative regulations or our Articles of Association to be adopted by way of special resolution. |
• | increase or reduction of our share capital and the issuance of shares of any class, warrants and other similar securities; |
• | issuance of Company debentures; |
• | division, merger, dissolution and liquidation of our Company; |
• | amendment to our Articles of Association; |
• | alteration to the form of our Company; |
• | acquisition or disposal within one year of material assets exceeding 30% of the total assets of our Company; and |
• | any other matter that, according to an ordinary resolution of the shareholders meeting, may have a significant impact on our Company and requires adoption by way of a special resolution. |
• | by the chairman of the meeting; |
• | by at least two shareholders who possess the right to vote, present in person or by proxy; or |
• | by one or more shareholders (including proxies) representing either separately or in aggregate, not less than one-tenth of all shares having the right to vote at the meeting. |
(1) | cancellation of shares for capital reduction; |
(2) | merging with another company that holds our shares; |
(3) | paying shares to our employees as bonus; or |
(4) | repurchasing, upon request, any shares held by any shareholder who is opposed to our Company’s resolution for merger or spin-off at a shareholders’ general meeting. |
(5) | other circumstances as permitted by laws and administrative regulations. |
• | under a general offer; |
• | open offer on a stock exchange; or |
• | by off-market contract. |
• | where we repurchase our shares at par value, the amount of the total par value of shares so repurchased shall be deducted from our book balance distributable profits or out of the proceeds of a new issue of shares made in respect of the repurchase; and |
• | where we repurchase our shares at a premium, an amount equivalent to their total par value shall be deducted from our book balance distributable profits or the proceeds of a new issue of shares made in respect of the repurchase. Payment of the portion in excess of their par value shall be effected as follows: |
• | if the shares being repurchased were issued at par value, payment shall be made out of our book balance distributable profits; and |
• | if the shares being repurchased were issued at a premium, payment shall be made out of our distributable profits or out of proceeds of a new issue of shares made in respect of the repurchase, provided that the amount paid out of the proceeds of the new issue may not exceed the aggregate of premiums received by us on the issue of the shares repurchased or the current balance of our capital common reserve account (inclusive of the premiums from the new issue of shares). |
• | the acquisition of rights to repurchase our shares; |
• | the variation of any contract to repurchase our shares; or |
• | the release of any of our obligations under any contract to repurchase our shares; |
• | to relieve a director or supervisor of his or her duty to act honestly in our best interests; |
• | to approve the expropriation, by a director or supervisor (for his or her own benefit or for the benefit of another person), in any guise, of our assets, including without limitation opportunities advantageous to us; or |
• | to approve the expropriation by a director or supervisor (for his or her own benefit or for the benefit of another person) of the individual rights of other shareholders, including without limitation rights to distributions and voting rights, save and except where it was done pursuant to a restructuring submitted to and approved by our shareholders in accordance with our Articles of Association. |
• | the provision by us of a loan or a guarantee of a loan to one of our subsidiaries; |
• | the provision by us of a loan or a guarantee in connection with a loan or any other funds to any of our directors, supervisors, general managers, deputy general managers or other senior officers to pay expenditures incurred or to be incurred on our behalf by him or her or for the purpose of enabling him or her to perform his or her duties properly, in accordance with the terms of a service contract approved by the shareholders at a general meeting; and |
• | the provision by us of a loan or a guarantee in connection with a loan to any of our directors, supervisors, general managers, deputy general managers or other senior officers or their respective associates on normal commercial terms, provided that the ordinary course of our business includes the lending of money or the giving of guarantees. |
• | convening shareholders’ meetings and reporting its work to shareholders at these meetings; |
• | implementing resolutions made at the shareholders’ meeting; |
• | determining the company’s operation plans and investment proposals; |
• | formulating the company’s annual financial budgets and final accounts plans; |
• | formulating the company’s profit distribution plans and loss recovery plans; |
• | formulating proposals for the increase or decrease in the company’s registered capital and the issue of debentures; |
• | formulating the company’s plans for the merger, division, change of the company’s incorporation type, or dissolution of the company; |
• | deciding on the company’s internal management structure and formulating its basic management system; and |
• | appointing or removing the company’s managers; appointing and removing the vice managers and other senior officers based on the recommendation of the managers and deciding on their remuneration. |
• | examining the company’s financial affairs; |
• | monitoring compliance with laws, regulations, the articles of association of the company and the shareholders resolutions by the directors and executive officers of the company; and suggesting removing the directors and executive officers who violate any such laws, administrative regulations, the articles of association or shareholders’ resolutions; |
• | requiring corrective action from directors and officers whose actions are contrary to the interests of the company; |
• | proposing to hold temporary shareholders’ meetings, and convening and presiding over shareholders’ meetings when the board of directors does not exercise the functions of convening and presiding over the shareholders’ meeting as prescribed under PRC law; |
• | proposing new items to be inserted in the agenda of the shareholders’ meeting; |
• | bringing lawsuits against directors or members of senior management, if they violate laws, regulations or articles of association of the company; and |
• | exercising and performing other powers and functions provided for in the company’s articles of association. |
C. |
Material Contracts |
D. |
Exchange Controls |
E. |
Taxation |
• | banks, insurance companies and financial institutions; |
• | U. S. expatriates; |
• | tax-exempt entities; |
• | broker-dealers; |
• | traders in securities that elect to mark to market; |
• | U.S. holders liable for alternative minimum tax; |
• | U.S. holders that own (either actually, or constructively, as determined pursuant to the Code) 10% or more of the combined voting power of all classes of our stock entitled to vote, or 10% or more of the total value of all classes of our stock; |
• | U.S. holders that hold the H shares or ADSs as part of a straddle or a hedging or conversion transaction; or |
• | U.S. holders whose functional currency is not the U.S. dollar. |
• | a citizen or resident (as determined pursuant to the special rules of the Code) of the United States for U.S. federal income tax purposes; |
• | an entity which is treated as a corporation for U.S. federal tax purposes and which has been created or organized under the laws of the United States, any state thereof or the District of Columbia; |
• | an estate the income of which is subject to U.S. federal income tax without regard to its source; or |
• | an arrangement which is treated for U.S. federal tax purposes as a trust: |
○ |
subject to the primary supervision of a U.S. court and the control of one or more U.S. persons; or |
○ |
that has elected to be treated as a U.S. person under applicable U.S. Treasury regulations. |
• | a foreign corporation that is eligible for the benefits of a comprehensive income tax treaty with the United States that includes an exchange of information program; and |
• | a foreign corporation if its stock with respect to which a dividend is paid (or ADSs backed by such stock) is readily tradable on an established securities market within the United States. |
• | 75% or more of its gross income consists of passive income, such as dividends, interest, rents and royalties; or |
• | 50% or more of the average quarterly value of its assets consists of assets that produce, or are held for the production of, passive income. |
• | fall within various other exempt categories, and, when required, demonstrate this fact; or |
• | provide a correct taxpayer identification number on a properly completed IRS Form W-9 or a substitute form, certify that you are exempt from backup withholding and otherwise comply with applicable requirements of the backup withholding rules. |
F. |
Dividends and Paying Agents |
G. |
Statement by Experts |
H. |
Documents on Display |
I. |
Subsidiary Information |
ITEM 11. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
As of December 31, |
||||||||||
Currency Denomination |
2020 |
2021 |
||||||||
(RMB thousands) |
||||||||||
Cash and cash equivalents |
USD | 29 | — | |||||||
Cash and cash equivalents |
HKD | 27,003 | 23,122 | |||||||
Other receivables |
HKD | — | 440 | |||||||
Other payables |
HKD | 132 | — |
ITEM 12. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
A. |
Debt Securities |
B. |
Warrants and Rights |
C. |
Other Securities |
D. |
American Depositary Shares |
• | a fee of US$1.50 per ADR for transfers of ADRs; |
• | a fee of US$0.02 or less per ADS for any cash distribution made, or the cash distribution fee; |
• | a fee of US$5.00 for each 100 ADSs (or portion thereof) for any security distribution; |
• | an aggregate fee of US$0.02 per ADS per calendar year (or portion thereof), for services performed by the Depositary in administering the ADRs (which fee may be charged on a periodic basis during each calendar year and shall be assessed against holders as of the record date or record dates set by the Depositary during each calendar year and shall be payable at the sole discretion of the Depositary by billing such holders or by deducting such charge from one or more cash dividends or other cash distributions); |
• | stock transfer or other taxes and other governmental charges; |
• | cable, telex and facsimile transmission and delivery charges incurred at the request of the ADS holders; |
• | transfer or registration fees for the registration or transfer of deposited securities on any applicable register in connection with the deposit or withdrawal of deposited securities; and |
• | expenses of the depositary in connection with the conversion of foreign currencies into U.S. dollars. |
ITEM 13. |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. |
CONTROLS AND PROCEDURES |
ITEM 16A. |
AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. |
CODE OF ETHICS |
ITEM 16C. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
2020 |
2021 |
|||||||
(RMB millions) |
||||||||
Audit Fees |
8.40 | 8.40 | ||||||
Audit-related Fees |
— | — | ||||||
Tax Fees |
— | — | ||||||
All Other Fees |
0.61 | 0.51 | ||||||
|
|
|
|
|||||
Total |
9.01 | 8.91 | ||||||
|
|
|
|
1. | Traveling expenses and certain tax surcharge fees are included in the audit fees and do not require additional payment. |
2. | The Company paid a remuneration of RMB5.30 million (including an internal control audit fee of RMB0.30 million) to PricewaterhouseCoopers Zhong Tian LLP and RMB3.10 million to PricewaterhouseCoopers for their annual auditing services. In addition, the fee that the Company had paid for non-audit services amounted to RMB0.51 million. |
ITEM 16D. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
ITEM 16F. |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. |
CORPORATE GOVERNANCE |
ITEM 16H. |
MINE SAFETY DISCLOSURE |
ITEM 16I. |
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 17. |
FINANCIAL STATEMENTS |
ITEM 18. |
FINANCIAL STATEMENTS |
ITEM 19. |
EXHIBITS |
(a) | See pages F-1 to F-85 following this item. |
(b) | Index of Exhibits. |
Exhibit Number |
Description | |
101.INS |
Inline XBRL Instance Document - this instance document does not appear on the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH |
Inline XBRL Taxonomy Extension Schema Document | |
101.CAL |
Inline Taxonomy Extension Calculation Linkbase Document | |
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE |
Inline XBRL Taxonomy Extension | |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
(1) | Incorporated by reference from the Registrant’s Form F-6 filed with the SEC on May 12, 2015. |
(2) | Incorporated by reference from the Registrant’s annual report on Form 20-F filed with the SEC on April 28, 2020. |
(3) | Incorporated by reference from the Registrant’s annual report on Form 20-F filed with the SEC on June 28, 2005. |
(4) | Incorporated by reference from the Registrant’s annual report on Form 20-F filed with the SEC on April 26, 2018. |
(5) | Incorporated by reference from the Registrant’s annual report on Form 20-F filed with the SEC on April 25, 2019. |
(6) | Incorporated by reference from the Registrant’s annual report on Form 20-F filed with the SEC on June 25, 2009. |
(7) | Incorporated by reference from the Registrant’s annual report on Form 20-F filed with the SEC on April 27, 2021. |
(8) | Furnished with this annual report on Form 20-F. |
GUANGSHEN RAILWAY COMPANY LIMITED | ||||||
Date: April 28, 2022 | By: | /s/ Wu Yong | ||||
Wu Yong Chairman of the Board of Directors |
Page |
||||
GUANGSHEN RAILWAY COMPANY LIMITED AND SUBSIDIARIES |
||||
F-2,3,4,5 |
||||
F-6 |
||||
F-7,8 |
||||
F-9 |
||||
F-10,11,12 |
||||
F-13 |
December 31 | ||||||||||||||
Note | 2020 | 2021 | 2021 | |||||||||||
RMB | RMB | US$* | ||||||||||||
ASSETS |
||||||||||||||
Non-current assets |
||||||||||||||
Fixed assets – net |
6 | |||||||||||||
Right-of-use |
8 | |||||||||||||
Construction-in-progress |
7 | |||||||||||||
Prepayments for fixed assets and construction-in-progress |
||||||||||||||
Goodwill |
9 | |||||||||||||
Investments in associates |
11 | |||||||||||||
Deferred tax assets |
12 | |||||||||||||
Long-term prepaid expenses |
13 | |||||||||||||
Financial assets at fair value through other comprehensive income |
15 | |||||||||||||
Long-term deposits |
16 | |||||||||||||
Long-term receivable |
17 | |||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
Current assets |
||||||||||||||
Materials and supplies |
18 | |||||||||||||
Trade receivables |
19 | |||||||||||||
Prepayments and other receivables |
20 | |||||||||||||
Short-term deposits |
16 | |||||||||||||
Cash and cash equivalents |
21 | |||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
Total assets |
||||||||||||||
|
|
|
|
|
|
|||||||||
EQUITY AND LIABILITIES |
||||||||||||||
Share capital |
22 | |||||||||||||
Share premium |
||||||||||||||
Other reserves |
23 | |||||||||||||
Retained earnings |
||||||||||||||
|
|
|
|
|
|
|||||||||
Capital and reserves attributable to the Company’s equity holders |
||||||||||||||
|
|
|
|
|
|
|||||||||
Non-controlling interests |
( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||||
Total equity |
||||||||||||||
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||
Non-current liabilities |
||||||||||||||
Lease liabilities |
8 | |||||||||||||
Deferred tax liabilities |
12 | |||||||||||||
Deferred income related to government grants |
24 | |||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
Current liabilities |
||||||||||||||
Trade and bill payables |
26 | |||||||||||||
Contract liabilities |
27 | |||||||||||||
Payables for fixed assets and construction-in-progress |
||||||||||||||
Dividends payable |
||||||||||||||
Income tax payable |
||||||||||||||
Current portion of lease liabilities |
8 | |||||||||||||
Accruals and other payables |
28 | |||||||||||||
Other current liability |
||||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
Total liabilities |
||||||||||||||
|
|
|
|
|
|
|||||||||
Total equity and liabilities |
||||||||||||||
|
|
|
|
|
|
* | Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB |
Chairman |
General Manager |
Chief Accountant |
Years ended December 31 | ||||||||||||||||||
Note | 2019 | 2020 | 2021 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$* | |||||||||||||||
Revenue from Railroad and Related Business |
||||||||||||||||||
Passenger |
||||||||||||||||||
Freight |
||||||||||||||||||
Railway network usage and other transportation related services |
||||||||||||||||||
Revenue from other businesses |
||||||||||||||||||
Total revenue |
||||||||||||||||||
Operating expenses |
||||||||||||||||||
Railroad business |
||||||||||||||||||
Business tax and surcharge |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Employee benefits |
30 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Equipment leases and services |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Materials and supplies |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Repair and facilities maintenance costs, excluding materials and supplies |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Depreciation of right-of-use |
8 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Depreciation of fixed assets |
6 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Cargo logistics and outsourcing service charges |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Utility and office expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Others |
31 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Other businesses |
||||||||||||||||||
Employee benefits |
30 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Materials and supplies |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Depreciation of right-of-use |
8 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Depreciation of fixed assets |
6 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Utility and office expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Others |
31 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Total operating expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Derecognition of land use right |
||||||||||||||||||
Reversal of impairment losses on financial assets, net |
||||||||||||||||||
Other (losses)/gains – net |
32 | ( |
) | ( |
) | |||||||||||||
Operating profit/(loss) |
( |
) | ( |
) | ( |
) | ||||||||||||
Finance costs – net |
33 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Share of results of associates, net of tax |
11 | ( |
) | |||||||||||||||
Profit/( loss ) before income tax |
( |
) | ( |
) | ( |
) | ||||||||||||
Income tax (expense)/credit |
34 | ( |
) | |||||||||||||||
Profit/( loss ) for the year |
( |
) | ( |
) | ( |
) | ||||||||||||
Years ended December 31 |
||||||||||||||||||||
Note |
2019 |
2020 |
2021 |
2021 |
||||||||||||||||
RMB |
RMB |
RMB |
US$* |
|||||||||||||||||
Profit/(Loss) for the year |
( |
) | ( |
) | ( |
) | ||||||||||||||
Other comprehensive income |
||||||||||||||||||||
Total comprehensive income for the year, net of tax |
( |
) | ( |
) | ( |
) | ||||||||||||||
Profit/(Loss) attributable to: |
||||||||||||||||||||
Equity holders of the Company |
( |
) | ( |
) | ( |
) | ||||||||||||||
Non-controlling interests |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
( |
) | ( |
) | ( |
) | |||||||||||||||
Total comprehensive income attributable to: |
||||||||||||||||||||
Equity holders of the Company |
( |
) | ( |
) | ( |
) | ||||||||||||||
Non-controlling interests |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
( |
) | ( |
) | ( |
) | |||||||||||||||
Earnings/(Loss) per share for profit attributable to the equity holders of the Company during the year |
||||||||||||||||||||
- Basic loss per share |
35 | RMB | RMB | ( |
) | RMB | ( |
) | USD |
( |
) | |||||||||
- Diluted loss per share |
35 | RMB | RMB | ( |
) | RMB | ( |
) | USD |
( |
) | |||||||||
Earnings/(Loss) per equivalent ADS |
||||||||||||||||||||
- Basic loss per share |
35 | RMB | RMB | ( |
) | RMB | ( |
) | USD |
( |
) | |||||||||
- Diluted loss per share |
35 | RMB | RMB | ( |
) | RMB | ( |
) | USD |
( |
) | |||||||||
* | Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB |
Chairman | General Manager | Chief Accountant |
Years ended December 31 |
||||||||||||||||||||
Note |
2019 |
2020 |
2021 |
2021 |
||||||||||||||||
RMB |
RMB |
RMB |
US$* |
|||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||
Cash generated from operations |
37(a |
) | ||||||||||||||||||
Income tax paid |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net cash generated from operating activities |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Cash flows from investing activities: |
||||||||||||||||||||
Payments for acquisition of fixed assets and construction-in-progress; construction-in-progress, |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Proceeds from disposal of fixed assets |
37(b |
) | ||||||||||||||||||
Proceeds from disposal of other long-term assets |
||||||||||||||||||||
Interest received on term deposits with maturities more than three months |
||||||||||||||||||||
Payments for financial assets at fair value through other comprehensive income |
( |
) | ( |
) | ||||||||||||||||
Decrease in term deposits with maturities more than three months |
||||||||||||||||||||
Increase in term deposits with maturities more than three months |
( |
) | ( |
) | ( |
) | ||||||||||||||
Dividends received |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Cash flows from financing activities: |
||||||||||||||||||||
Dividends paid to the Company’s shareholders |
( |
) | ( |
) | ||||||||||||||||
Payment of lease liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net cash used in financing activities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net (decrease) /increase in cash and cash equivalents |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Cash and cash equivalents, at beginning of year |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Cash and cash equivalents, at end of year |
21 | |||||||||||||||||||
|
|
|
|
|
|
|
|
* | Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB |
|
|
| ||||||
Chairman | General Manager | Chief Accountant |
Attributable to equity holders of the Company |
||||||||||||||||||||||||||||||||||||||||||||
Share capital (Note 23) |
Share premium |
Statutory surplus reserve (Note 23) |
Discretionary surplus reserve (Note 23) |
Other reserves (Note 23) |
Retained earnings |
Total |
Non-controlling interests |
Total equity |
||||||||||||||||||||||||||||||||||||
Balance at January 1, 2 019 |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Profit for the year |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Other c omprehensive income |
||||||||||||||||||||||||||||||||||||||||||||
Special reserve - Safety Production Fund (Note 23) |
||||||||||||||||||||||||||||||||||||||||||||
Appropriation |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Utilization |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Appropriations from retained earnings (Note 23) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Transaction with owners: |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||
Dividend 2018 (Note 36) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity holders of the Company |
||||||||||||||||||||||||||||||||||||||||||||
Share capital (Note 23) |
Share premium |
Statutory surplus reserve (Note 23) |
Discretionary surplus reserve (Note 23) |
Other reserves (Note 23) |
Retained earnings |
Total |
Non-controlling interests |
Total equity |
||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Loss for the year |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||||||||||||||||||||||
Special reserve - Safety Production Fund (Note 23) |
||||||||||||||||||||||||||||||||||||||||||||
Appropriation |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Utilization |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Appropriations from retained earnings (Note 23) |
||||||||||||||||||||||||||||||||||||||||||||
Transaction with owners: |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||
Dividend 2019 (Note 36) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||||||||||
Share capital (Note 23) |
Share premium |
Statutory surplus reserve (Note 23) |
Discretionary surplus reserve (Note 23) |
Other reserves (Note 23) |
Retained earnings |
Total | Non-controlling interests |
Total equity |
||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Loss for the year |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||||||||||||||||||||||
Special reserve - Safety Production Fund (Note 23) |
||||||||||||||||||||||||||||||||||||||||||||
Appropriation |
||||||||||||||||||||||||||||||||||||||||||||
Utilization |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||
Appropriations earnings (Note 23) |
||||||||||||||||||||||||||||||||||||||||||||
Others (Note 11) |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Balance at December 31, 2021 |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Balance December (US$*) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | Translation of amounts from Renminbi (“RMB”) into United States dollars (“US$”) for the convenience of the reader has been made at US$1.00=RMB |
|
|
| ||||||
Chairman | General Manager | Chief Accountant |
1. |
GENERAL INFORMATION |
1. |
GENERAL INFORMATION (CONTINUED) |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2.1 |
Basis of preparation |
(a) | Compliance with IFRS |
(b) | Historical cost convention |
(c) | Going concern basis |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.1 |
Basis of preparation (continued) |
(d) | New and amended standards adopted by the Group |
• |
Covid-19-Related |
• |
Interest Rate Benchmark Reform Phase 2 – Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 |
(e) | New standards and interpretations not yet adopted |
Effective for annual periods beginning on or after | ||||
Amendments to IAS 16 |
Property, Plant and Equipment: Proceeds before intended use |
1 January 2022 | ||
Annual Improvements to IFRS Standards 2018–2020 |
1 January 2022 | |||
Amendments to IFRS 3 |
Business Combination |
1 January 2022 | ||
Amendments to IAS 37 |
Onerous Contracts – Cost of Fulfilling a Contract |
1 January 2022 | ||
Amendments to IAS 1 |
Classification of Liabilities as Current or Non-current |
1 January 2023 | ||
IFRS 17 |
Insurance Contracts |
1 January 2023 | ||
Amendments to IAS 1 and IFRS Practice Statement 2 |
Disclosure of Accounting Policies |
1 January 2023 | ||
Amendments to IAS 8 |
Definition of Accounting Estimates |
1 January 2023 | ||
Amendments to IAS 12 |
Deferred Tax related to Assets and Liabilities arising from a Single Transaction |
1 January 2023 | ||
Amendments to IFRS 10 and IAS 28 |
Sale or contribution of assets between an investor and its associate or joint venture |
To be determined |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.2 |
Subsidiaries |
2.2.1 |
Consolidation |
(a) | Business combinations |
• | fair values of the assets transferred, |
• | liabilities incurred to the former owners of the acquired business |
• | equity interests issued by the Group |
• | fair value of any asset or liability resulting from a contingent consideration arrangement, and |
• | fair value of any pre-existing equity interest in the subsidiary. |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.2 |
Subsidiaries (continued) |
2.2.1 |
Consolidation (continued) |
(a) | Business combinations (continued) |
(b) |
Changes in ownership interests in subsidiaries without change of control |
(c) |
Disposal of subsidiaries |
2.2.2 |
Separate financial statements |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.3 |
Associates |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.4 |
Segment reporting |
2.5 |
Foreign currency transaction |
(a) | Functional and presentation currency |
(b) | Transactions and balances |
2.6 |
Fixed assets |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.6 |
Fixed assets (continued) |
Buildings (a) |
||
Tracks, bridges and service roads (a) |
||
Locomotives and rolling stock |
||
Communications and signaling systems |
||
Other machinery and equipment |
(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; and the initial period of certain land use right acquired (note 2.26), on which these assets are located. |
2.7 |
Construction-in-progress |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.8 |
Goodwill |
2.9 |
Impairment of non-financial assets other than goodwill |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.10 |
Investments and other financial assets |
(a) | Classification |
• | those to be measured at amortized cost; or |
• | those to be measured subsequently at FVOCI; |
(b) | Recognition and derecognition |
(c) | Measurement |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.10 |
Investments and other financial assets (continued) |
(c) | Measurement (continued) |
(d) | Impairment |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.10 |
Investments and other financial assets (continued) |
(d) | Impairment (continued) |
2.11 |
Offsetting financial instruments |
2.12 |
Long-term prepaid expenses |
2.13 |
Non-current assets held for sale |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.13 |
Non-current assets held for sale (continued) |
2.14 |
Materials and supplies |
2.15 |
Trade and other receivables |
2.16 |
Cash and cash equivalents |
2.17 |
Share capital |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.18 |
Financial liabilities |
2.19 |
Current and deferred income tax |
(a) | Current income tax |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.19 |
Current and deferred income tax (continued) |
(b) | Deferred income tax |
(c) | Offsetting |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.20 |
Employee benefits |
(a) | Defined contribution plan |
(b) | Termination benefits |
2.21 |
Provisions |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.22 |
Revenue recognition |
(a) | Revenue from railroad and related business |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.22 |
Revenue recognition (continued) |
(a) | Revenue from railroad and related business (continued) |
(b) |
Revenue from other businesses |
(c) |
Financing components |
2 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.23 |
Interest income |
2.24 |
Dividend income |
2.25 |
Government grants |
2.26 |
Leases |
2 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.26 |
Leases (continued) |
• | fixed payments (including in-substance fixed payments), less any lease incentives receivable |
• | variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date |
• | amounts expected to be payable by the group under residual value guarantees |
• | the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and |
• | payments of penalties for terminating the lease, if the lease term reflects the group exercising that option. |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.26 |
Leases (continued) |
• | where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received |
• | uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the Group, which does not have recent third party financing, and |
• | makes adjustments specific to the lease, e.g. term, country, currency and security. |
• | the amount of the initial measurement of lease liability |
• | any lease payments made at or before the commencement date less any lease incentives received |
• | any initial direct costs, and |
• | restoration costs. |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2.26 |
Leases (continued) |
• |
the modification increases the scope of the lease by adding the right to use one or more underlying assets. |
• |
the consideration for the lease increases commensurate with the standalone price for the increase in scope and any adjustments to that stand-alone price reflect the circumstances of the particular contract. |
2.27 |
Dividend distribution |
3. |
FINANCIAL RISK MANAGEMENT |
3.1 |
Financial risk factor |
(a) | Market risk |
(i) | Foreign currency risk |
Currency | As at December 31 | |||||||||||
denomination | 2020 | 2021 | ||||||||||
Monetary assets |
||||||||||||
Cash and cash equivalents |
HKD | |||||||||||
Cash and cash equivalents |
USD | |||||||||||
Other receivables |
HKD | |||||||||||
|
|
|
|
|||||||||
Monetary liabilities |
||||||||||||
Other payables |
HKD | |||||||||||
|
|
|
|
3. |
FINANCIAL RISK MANAGEMENT (CONTINUED) |
3.1 |
Financial risk factor (continued) |
(a) | Market risk (continued) |
(i) | Foreign currency risk (continued) |
(ii) | Cash flow and fair value interest rate risk |
(iii) | Other price risk |
(b) | Credit risk |
3. |
FINANCIAL RISK MANAGEMENT (CONTINUED) |
3.1 |
Financial risk factor (continued) |
(b) | Credit risk (continued) |
(i) | Risk management |
(ii) | Impairment of financial assets |
3. |
FINANCIAL RISK MANAGEMENT (CONTINUED) |
3. 1 |
Financial risk factor (continued) |
(b) | Credit risk (continued) |
(ii) | Impairment of financial assets (continued) |
• |
Portfolio 1: receivable incurred from revenues collected and settled through the CSRG; |
• |
Portfolio 2: receivable incurred from revenue from railway operation; |
• |
Portfolio 3: receivable incurred from revenue other than railway operation and revenues collected and settled without the CSRG; and |
• |
Portfolio 4: bank acceptance that represents lower credit risk. |
As at December 31, 2020 | As at December 31, 2021 | |||||||||||||||||||||||
Carrying amount |
ECL rates |
Loss provision |
Carrying amount |
ECL rates |
Loss provision |
|||||||||||||||||||
Portfolio 1 |
||||||||||||||||||||||||
Portfolio 2 |
% | ( |
) | % | ( |
) | ||||||||||||||||||
Portfolio 3 |
% | ( |
) | % | ( |
) | ||||||||||||||||||
|
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|||||||||||||||||
( |
) | ( |
) | |||||||||||||||||||||
|
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|
|
|
Trade receivables | ||||||||
2020 RMB’000 |
2021 RMB’000 |
|||||||
Opening loss provision as at January 1 |
||||||||
Receivables written off during the year as uncollectible |
( |
) | ||||||
Reversal of impairment loss provision |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Closing loss provision at December 31 |
||||||||
|
|
|
|
3. |
FINANCIAL RISK MANAGEMENT (CONTINUED) |
3.3 |
Financial risk factor (continued) |
(b) | Credit risk (continued) |
(ii) | Impairment of financial assets (continued) |
As at December 31, 2020 | As at December 31, 2021 | |||||||||||||||||||||||
Carrying amount |
ECL rates |
Loss provision |
Carrying amount |
ECL rates |
Loss provision |
|||||||||||||||||||
Stage 1 (Portfolio) |
% | ( |
) | % | ( |
) | ||||||||||||||||||
Stage 1 (Individual) |
||||||||||||||||||||||||
Stage 2 |
||||||||||||||||||||||||
Stage 3 |
% | ( |
) | % | ( |
) | ||||||||||||||||||
|
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|
|||||||||||||||||
( |
) | ( |
) | |||||||||||||||||||||
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|
|
(c) | Liquidity risk |
3. |
FINANCIAL RISK MANAGEMENT (CONTINUED) |
3.1 |
Financial risk factor (continued) |
(c) | Liquidity risk (continued) |
Less than 1 year |
Between 1 and 5 years |
|
Over 5 years |
Carrying amount |
|||||||||||||
RMB’000 | RMB’000 | |
RMB’000 | RMB’000 | |||||||||||||
At December 31, 2020 |
|
||||||||||||||||
Trade and other payables excluding non-financial liabilities |
|
||||||||||||||||
Payables for fixed assets and construction-in-progress |
|
||||||||||||||||
Lease liabilities |
|
||||||||||||||||
Dividends payable |
|
||||||||||||||||
|
|
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|
|
|||||||||
|
|||||||||||||||||
|
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|
|
|
|
|
|
|||||||||
At December 31, 2021 |
|
||||||||||||||||
Trade and bill payables and other payables excluding non-financial liabilities |
|
||||||||||||||||
Payables for fixed assets and construction-in-progress |
|
||||||||||||||||
Lease liabilities |
|
||||||||||||||||
Dividends payable |
|
||||||||||||||||
|
|
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|||||||||
|
|||||||||||||||||
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|
3.2 |
Capital risk management |
3. |
FINANCIAL RISK MANAGEMENT (CONTINUED) |
3.3 |
Fair value estimation |
• | 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). |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
RMB’000 |
RMB’000 |
RMB’000 |
RMB’000 |
|||||||||||||
Assets |
||||||||||||||||
Financial assets at FVOCI |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
RMB’000 |
RMB’000 |
RMB’000 |
RMB’000 |
|||||||||||||
Assets |
||||||||||||||||
Financial assets at FVOCI |
||||||||||||||||
3. |
FINANCIAL RISK MANAGEMENT (CONTINUED) |
3.3 |
Fair value estimation (continued) |
Financial assets at FVOCI |
||||
Opening balance as at January 1, 2020 |
||||
Acquisitions |
||||
Closing balance December 31, 2020 |
||||
Acquisitions |
||||
Closing balance as at December 31, 2021 |
||||
4. |
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS |
(a) | Provision for impairment of trade receivables |
(b) | Goodwill Impairment |
5. |
SEGMENT INFORMATION |
5. |
SEGMENT INFORMATION (CONTINUED) |
The Railway Transportation Business | All other segments | Elimination | Total | |||||||||||||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2019 | 2020 | 2021 | 2019 | 2020 | 2021 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||
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 |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
– Revenue from external customers |
||||||||||||||||||||||||||||||||||||||||||||||||
– Inter segment revenue |
||||||||||||||||||||||||||||||||||||||||||||||||
– Other Businesses |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
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|
|
|
|||||||||||||||||||||||||
– Revenue from external customers |
— | — | — | |||||||||||||||||||||||||||||||||||||||||||||
– Inter segment revenue |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
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|
|
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|
|
|
|||||||||||||||||||||||||
Total revenue |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
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|
|
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|
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|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Timing of revenue recognition |
||||||||||||||||||||||||||||||||||||||||||||||||
– Over time |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
– At a point in time |
||||||||||||||||||||||||||||||||||||||||||||||||
– Lease |
||||||||||||||||||||||||||||||||||||||||||||||||
|
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|
|
|||||||||||||||||||||||||
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Segment result |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Finance costs - net |
||||||||||||||||||||||||||||||||||||||||||||||||
Share of results of associates, net of tax |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation of fixed assets |
||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of right-of-use |
||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of long-term prepaid expenses |
||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of fixed assets |
||||||||||||||||||||||||||||||||||||||||||||||||
Provision for impairment of materials and supplies |
||||||||||||||||||||||||||||||||||||||||||||||||
Reversal of impairment losses on financial assets |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. |
SEGMENT INFORMATION (CONTINUED) |
The Railway Transportation Business | All other segments | Elimination | Total | |||||||||||||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2019 | 2020 | 2021 | 2019 | 2020 | 2021 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||
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 |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Income tax (expense)/credit |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Profit/(loss) for the year |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Railway Transportation Business |
All other segments | Elimination | Total | |||||||||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | |||||||||||||||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||||||||||||||
Total segment assets |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total segment assets include: |
||||||||||||||||||||||||||||||||
Investment in associates |
||||||||||||||||||||||||||||||||
Additions to non-current assets (other than financial instruments and deferred tax assets) |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total segment liabilities |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. |
FIXED ASSETS-NET |
Buildings | Tracks, bridges and service roads |
Locomotives and rolling stock |
Communications and signaling systems |
Other machinery and equipment |
Total | |||||||||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||||||||
At January 1, 2020 |
||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||
Accumulated depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Impairment |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net book amount |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Year ended December 31, 2020 |
||||||||||||||||||||||||
Opening net book amount |
||||||||||||||||||||||||
Other additions |
||||||||||||||||||||||||
Transfer in from construction-in-progress |
||||||||||||||||||||||||
Transfer out to construction-in-progress |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Transfer in from construction-in-progress |
||||||||||||||||||||||||
Reclassifications |
( |
) | ||||||||||||||||||||||
Disposals |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Depreciation charges |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Impairment charge |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Closing net book amount |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
At December 31, 2020 |
||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||
Accumulated depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Impairment |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net book amount |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Year ended December 31, 2021 |
||||||||||||||||||||||||
Opening net book amount |
||||||||||||||||||||||||
Other additions |
||||||||||||||||||||||||
Government grant (c) |
||||||||||||||||||||||||
Transfer in from construction-in-progress |
||||||||||||||||||||||||
Transfer out to construction-in-progress |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Transfer in from construction-in-progress |
||||||||||||||||||||||||
Reclassifications |
( |
) | ||||||||||||||||||||||
Disposals |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Depreciation charges |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Impairment charge |
( |
) | ( |
) | ||||||||||||||||||||
Impairment write-off |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Closing net book amount |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
At December 31, 2021 |
||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||
Accumulated depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Impairment |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net book amount |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
6. |
FIXED ASSETS-NET (CONTINUED) |
(a) | As at December 31, 2021, the ownership certificates of certain buildings of the Group with an aggregate carrying value of approximately RMB |
Carrying value as at December 31 2020 RMB’000 |
Carrying value as at December 31 2021 RMB’000 |
Reason for delay in obtaining the ownership certificates | ||||
Certificates for buildings under application procedures |
The Group commenced such application procedures with the respective authorities in China, there has been progress made and the Group’s management does not expect any major difficulties in obtaining the remaining ownership certificates. | |||||
Certain buildings located on the land of which the land use right certificates have not been obtained |
According to relevant laws and regulations in China, the land use right certificates of the land on which these buildings are located must be obtained before the Group can start the application for the respective housing ownership certificates. As a result, the Group will start to apply for the ownership certificates of these buildings after they have completed the procedures to obtain the land use right certificates. | |||||
Certain buildings attached to pieces of land which is held by lease |
Such land is held by lease under certain operating lease arrangements. Due to the fact that the Group does not have the underlying land use right certificates for such land, therefore, the Group cannot apply for the respective ownership certificates of the buildings constructed on top of it. According to the lease agreements and communication with the lessors, and as confirmed by the Company’s legal counsel, the Group possesses the right to use and/or own such buildings without the certificates. |
(b) | As at December 31, 2021, fixed assets of the Group with an aggregate net book value of approximately RMB |
(c) | According to the agreements regarding on the relocation project of old Dongguan Station jointly signed by Dongguan Municipal People’s Government (the “Government”), the Guangzhou Railway Group and the Company, the Government transferred the asset rights of the New Dongguan Station funded by the Government to the Company for free in October 2021. Total value of the related assets was RMB |
7. |
CONSTRUCTION-IN-PROGRESS |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
At 1 January |
||||||||
Transfer in from fixed assets for improvement/modifications (Note 6) |
||||||||
Other additions |
||||||||
Transfer to fixed assets (Note 6) |
( |
) | ( |
) | ||||
Transfer out to fixed assets after improvement/modifications (Note 6) |
( |
) | ( |
) | ||||
|
|
|
|
|||||
At 31 December |
||||||||
|
|
|
|
8. |
RIGHT-OF-USE |
(1) |
RIGHT-OF-USE |
2021 | ||||||||||||
Land use right (a) |
Lease of Land use right |
Total | ||||||||||
RMB’000 | RMB’000 | RMB’000 | ||||||||||
Cost |
||||||||||||
As at December 31, 2020 |
||||||||||||
Additions |
||||||||||||
|
|
|
|
|
|
|||||||
As at December 31, 2021 |
||||||||||||
|
|
|
|
|
|
|||||||
Accumulated depreciation |
||||||||||||
As at December 31, 2020 |
( |
) | ( |
) | ( |
) | ||||||
Additions |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
As at December 31, 2021 |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Net book value |
||||||||||||
As at December 31, 2021 |
||||||||||||
|
|
|
|
|
|
|||||||
As at December 31, 2020 |
||||||||||||
|
|
|
|
|
|
8. |
RIGHT-OF-USE |
(2) |
LEASE LIABILITIES |
2021 |
2020 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Lease liabilities |
||||||||
Less: current portion of lease liabilities |
( |
) |
( |
) | ||||
|
|
|
|
|||||
|
|
|
|
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Depreciation charge of right-of-use |
||||||||
Interest expense on lease liabilities |
|
|||||||
Expense relating to short-term leases |
||||||||
|
|
|
|
|||||
|
|
|
|
(a) | As at December 31, 2021, the ownership certificates of land with an aggregate carrying value of approximately RMB |
Carrying value as at December 31 2021 RMB’000 |
Reason for delay in obtaining the ownership certificates | |||
Certain pieces of land associated with the operations of Guangshen Line IV, one of the railway lines operated by the Company | Due to the fact that Guangshen Line IV spans across several cities, counties and villages in China, it is practically cumbersome and time consuming for the Group to coordinate and execute the procedures for acquiring the respective land use rights certificates with the respective local bureaus and authorities governing the title registration and transfer, and therefore, the progress of acquiring the formal title certificates has been progressing slowly. |
9. |
GOODWILL |
RMB’000 | ||||
Year ended December 31, 2020 and 2021 |
||||
Opening net book amount |
||||
Additions |
||||
Impairment |
||||
Closing net book amount |
||||
Year ended December 31, 2019 and 2020 |
||||
Opening net book amount |
||||
Additions |
||||
Impairment |
||||
Closing net book amount |
||||
9. |
GOODWILL (CONTINUED) |
Railroad business | 2020 | 2021 | ||
Revenue growth rate (within the five-year period) |
||||
Long-term growth rate (beyond the five-year period) |
||||
Gross margin |
- | |||
Pre-tax discount rate |
10. |
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 (%) |
Registered capital RMB’000 |
||||||||||||||
Warehousing in the PRC |
% | % | % | |||||||||||||||||
Hotel management in the PRC |
% | % | ||||||||||||||||||
Cargo loading and unloading, warehousing, freight transportation in the PRC |
% | % | ||||||||||||||||||
Catering management in the PRC |
% | % | ||||||||||||||||||
Catering services and sales of merchandise in the PRC |
% | % | ||||||||||||||||||
Sales of merchandises in the PRC |
||||||||||||||||||||
Cargo loading and unloading, warehousing, freight transportation in the PRC |
% | % | ||||||||||||||||||
Real estate construction, provision of warehousing, cargo uploading and unloading services in the PRC |
% | % | % |
10. |
SUBSIDIARIES (CONTINUED) |
(i) | According to the Articles of Association of Zengcheng Lihua, the remaining shareholders are all natural persons and |
(ii) | In 2021, Dongqun Trade and Commerce Service was liquidated. |
11. |
INVESTMENTS IN ASSOCIATES |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Share of net assets |
||||||||
Less: provision for impairment |
||||||||
2019 | 2020 | 2021 | ||||||||||
RMB’000 | RMB’000 | RMB’000 | ||||||||||
Beginning of the year |
||||||||||||
Share of results after tax |
( |
) | ||||||||||
Equity dilution (a) |
||||||||||||
End of the year |
||||||||||||
Name of the entity |
Percentage of equity interest attributable to the Company |
Paid-in capital | Principal activities | |||||
Guangzhou Tiecheng Enterprise Company Limited (“Tiecheng”) |
RMB |
Properties leasing and trading of merchandise | ||||||
Shenzhen Guangzhou Railway Civil Engineering Company (“Shentu”) (a) |
RMB |
Construction of railroad properties |
(a) | On March 2021, according to the resolution passed in the shareholders’ meeting of Shentu, Guangzhou Railway Group increased investment amounted to RMB |
11. |
INVESTMENTS IN ASSOCIATES (CONTINUED) |
Tiecheng | Shentu | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||
Current assets |
||||||||||||||||
Non-current assets |
||||||||||||||||
Total assets |
||||||||||||||||
Current liabilities |
||||||||||||||||
Equity |
||||||||||||||||
Share of net assets |
||||||||||||||||
Carrying amount of interest in associates |
||||||||||||||||
Tiecheng | Shentu | |||||||||||||||||||||||
2019 | 2020 | 2021 | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||||||||
Revenue |
||||||||||||||||||||||||
Net profit/(loss) |
( |
) | ||||||||||||||||||||||
Total comprehensive income/(loss) for the year |
( |
) | ||||||||||||||||||||||
Tiecheng | Shentu | Total | ||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2019 | 2020 | 2021 | 2019 | 2020 | 2021 | ||||||||||||||||||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | ||||||||||||||||||||||||||||
Opening net assets |
||||||||||||||||||||||||||||||||||||
(Loss)/profit for the year |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Increase in net assets arising from capital injection by other shareholder (a) |
||||||||||||||||||||||||||||||||||||
Closing net assets |
||||||||||||||||||||||||||||||||||||
Percentage of ownership interest |
% | % | % | % | % | % | ||||||||||||||||||||||||||||||
Carrying value |
||||||||||||||||||||||||||||||||||||
12. |
DEFERRED TAX ASSETS/(LIABILITIES) |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Deferred tax assets |
||||||||
Less: Offsetting of deferred tax liabilities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Deferred tax assets (net) |
||||||||
|
|
|
|
|||||
Deferred tax liabilities |
( |
) | ( |
) | ||||
Less: Offsetting of deferred tax assets |
||||||||
|
|
|
|
|||||
Deferred tax liabilities (net) |
( |
) | ( |
) | ||||
|
|
|
|
|||||
|
|
|
|
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Deferred tax assets: |
||||||||
- Deferred tax assets to be recovered after more than 12 months |
||||||||
- Deferred tax assets to be recovered within 12 months |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Deferred tax liabilities: |
||||||||
- Deferred tax liabilities to be recovered after more than 12 months |
( |
) | ( |
) | ||||
- Deferred tax liabilities to be recovered within 12 months |
( |
) | ( |
) | ||||
|
|
|
|
|||||
( |
) | ( |
) | |||||
|
|
|
|
12. |
DEFERRED TAX ASSETS/(LIABILITIES) (CONTINUED) |
At January 1 2020 |
Credited/ (Charged) to the comprehensive income statement |
At December 31 2020 |
Credited/ (Charged) to the comprehensive income statement |
At December 31 2021 |
||||||||||||||||
RMB’000 |
RMB’000 |
RMB’000 |
RMB’000 |
RMB’000 |
||||||||||||||||
Deferred tax assets: |
||||||||||||||||||||
Deductible tax losses |
||||||||||||||||||||
Impairment provision for receivables |
( |
) | ( |
) | ||||||||||||||||
Impairment provision for fixed assets and construction-in-progress |
||||||||||||||||||||
Impairment provision for materials and supplies |
( |
) | ||||||||||||||||||
Differences in accounting base and tax base of government grants |
||||||||||||||||||||
Differences in accounting base and tax base of employee benefits obligations |
||||||||||||||||||||
Loss on disposal of fixed assets |
( |
) | ||||||||||||||||||
Difference in accounting base and tax base of party organization activity fee |
( |
) | ||||||||||||||||||
Difference in accounting base and tax base in the recognition of land disposal proceed |
( |
) | ||||||||||||||||||
Difference in accounting base and tax base of safety production reserve |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Others |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
At January 1 2020 |
(Credited)/ Charged to the comprehensive income statement |
At December 31 2020 |
(Credited)/ Charged to the comprehensive income statement |
At December 31 2021 |
||||||||||||||||
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 |
( |
) | ( |
) | ||||||||||||||||
Differences in accounting base and tax base in recognition of leasehold land payments |
( |
) | ( |
) | ||||||||||||||||
Changes in the fair value of available-for-sale |
|
|
||||||||||||||||||
Others |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
12 |
DEFERRED TAX ASSETS/(LIABILITIES) (CONTINUED) |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Tax losses that can be carried forward (a) |
||||||||
Deductible temporary differences |
||||||||
|
|
|
|
|||||
|
|
|
|
(a) | The tax loss carry-forwards in which no deferred income tax assets were recognized will expire in the following years: |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
2021 |
||||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
2025 |
||||||||
2026 |
||||||||
|
|
|
|
|||||
|
|
|
|
13. |
LONG-TERM PREPAID EXPENSES |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
At January 1 |
||||||||
Cost |
||||||||
Accumulated amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net book amount |
||||||||
|
|
|
|
|||||
Year ended December 31 |
||||||||
Opening net book amount |
||||||||
Additions |
||||||||
Amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Closing net book amount |
||||||||
|
|
|
|
|||||
At December 31 |
||||||||
Cost |
||||||||
Accumulated amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net book amount |
||||||||
|
|
|
|
14. |
FINANCIAL INSTRUMENTS BY CATEGORY |
2020 |
2021 |
|||||||
RMB’000 | RMB’000 | |||||||
Financial assets |
||||||||
Financial assets at amortized cost |
||||||||
Trade receivables and other receivables excluding prepayments (Notes 19 and 20) |
||||||||
Term deposits (Note 16) |
||||||||
Cash and cash equivalents (Note 21) |
||||||||
Long-term receivable (Note 17) |
||||||||
FVOCI (Note 15) |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
2020 |
2021 |
|||||||
RMB’000 | RMB’000 | |||||||
Financial liabilities |
||||||||
Liabilities at amortized cost |
||||||||
Trade and bill payables and other payables excluding non-financial liabilities (Notes 26 and 28) |
||||||||
Payables for fixed assets and construction-in-progress |
||||||||
Dividends payable |
||||||||
Lease liabilities |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
15. |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME |
(a) | Classification of financial assets at FVOCI |
(b) | Equity investments at fair value through other comprehensive income |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Non-current assets |
||||||||
Investments in unlisted companies |
||||||||
|
|
|
|
15. |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (CONTINUED) |
(c) | Amounts recognized in profit or loss and other comprehensive income |
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Dividends from equity investments at FVOCI recognized in profit or loss in other gains/losses - net (Note 32) |
||||||||
- Related to investments held at the end of the reporting period |
(d) | Fair value |
16. |
TERM DEPOSITS |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Current assets |
||||||||
Short term deposits |
||||||||
|
|
|
|
|||||
Non-current assets |
||||||||
Long term deposits |
||||||||
|
|
|
|
17. |
LONG-TERM RECEIVABLE |
18. |
MATERIALS AND SUPPLIES |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Raw materials |
||||||||
Reusable rail-line track materials |
||||||||
Accessories |
||||||||
Retailing consumables |
||||||||
19. |
TRADE RECEIVABLES |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Trade receivables |
||||||||
Including: receivables from related parties |
||||||||
Less: Provision for impairment of receivables |
( |
) | ( |
) | ||||
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Within 1 year |
||||||||
Over 1 year but within 2 years |
||||||||
Over 2 years but within 3 years |
||||||||
Over 3 years |
||||||||
2019 | 2020 | 2021 | ||||||||||
RMB’000 | RMB’000 | RMB’000 | ||||||||||
At December 31 |
||||||||||||
Reversal of impairment loss provision |
( |
) | ( |
) | ||||||||
Written-off |
( |
) | ( |
) | ||||||||
At December 31 |
||||||||||||
20. |
PREPAYMENTS AND OTHER RECEIVABLES |
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Due from third parties |
||||||||
Due from related parties |
||||||||
|
|
|
|
|||||
|
|
|
|
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Other receivables |
||||||||
Less: Provision for impairment |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Other receivables, net (a) |
||||||||
Prepayments (b) |
||||||||
|
|
|
|
|||||
|
|
|
|
(a) | Other receivables mainly represent miscellaneous deposits and receivables arising from the course of provision of non-railway transportation services by the Group. |
2019 | 2020 | 2021 | ||||||||||
RMB’000 | RMB’000 | RMB’000 | ||||||||||
At January 1 |
||||||||||||
Provision for impairment |
||||||||||||
Reversal of impairment loss provision |
( |
) | ||||||||||
Written off of impairment loss provision |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
At December 31 |
||||||||||||
|
|
|
|
|
|
(b) | Prepayments mainly represent amounts paid in advance to the suppliers for utilities and other operating expenses of the Group. As of December 31, 2021, the input VAT with related invoices not been received or verified amounted to RMB |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
RMB |
||||||||
HKD |
||||||||
|
|
|
|
|||||
|
|
|
|
21. |
CASH AND CASH EQUIVALENTS AND SHORT-TERM DEPOSITS |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Cash at bank and on hand |
||||||||
|
|
|
|
(a) | The carrying amounts of the cash and cash equivalents and short-term deposits are denominated in the following currencies: |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
RMB |
||||||||
HKD |
||||||||
USD |
||||||||
|
|
|
|
|||||
|
|
|
|
22. |
SHARE CAPITAL |
As at December 31 2019 |
Movement |
As at December 31 2020 |
Movement |
As at December 31 2021 |
||||||||||||||||
RMB’000 |
RMB’000 |
RMB’000 |
RMB’000 |
RMB’000 |
||||||||||||||||
Authorized, issued and fully paid: |
|
|||||||||||||||||||
Listed shares |
||||||||||||||||||||
- H shares |
||||||||||||||||||||
- A shares |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
23. |
RESERVES |
(a) | Statutory surplus reserve and discretionary surplus reserve |
23. |
RESERVES (CONTINUED) |
(a) | Statutory surplus reserve and discretionary surplus reserve (continued) |
2019 |
2019 |
2020 |
2020 |
2021 |
2021 |
|||||||||||||||||||
Percentage |
RMB’000 |
Percentage |
RMB’000 |
Percentage |
RMB’000 |
|||||||||||||||||||
Statutory surplus reserve |
% | |||||||||||||||||||||||
23. |
RESERVES (CONTINUED) |
(b) |
Other reserves |
(i) |
Special reserve - Safety Production Fund |
2019 | 2020 | 2021 | ||||||||||
RMB’000 | RMB’000 | RMB’000 | ||||||||||
At January 1 |
||||||||||||
Appropriation for retained earnings |
||||||||||||
Utilization |
( |
) | ( |
) | ( |
) | ||||||
At December 31 |
||||||||||||
(i) |
(ii) |
(ii) | FVOCI reserve |
(iii) | Others |
24. |
DEFERRED INCOME |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Government grants |
|
|
||||||
25. |
EMPLOYEE BENEFITS OBLIGATIONS |
2021 |
2020 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Employee benefits obligations |
||||||||
Less: current portion included in accruals and other payables (Note 28) |
( |
) |
( |
) | ||||
25. |
EMPLOYEE BENEFITS OBLIGATIONS (CONTINUED) |
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
At January 1 |
||||||||
Additions |
||||||||
Payments |
( |
) |
( |
) | ||||
At December 31 |
||||||||
26. |
TRADE AND BILL PAYABLES |
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Trade payables (a) |
||||||||
Bill payables (b) |
||||||||
(a) |
Trade payables |
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Payables to third parties |
||||||||
Payables to related parties |
||||||||
(b) |
Bill payables |
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Bank acceptance bills |
||||||||
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Within 1 year |
||||||||
Over 1 year but within 2 years |
||||||||
Over 2 years but within 3 years |
||||||||
Over 3 years |
||||||||
27. |
CONTRACT LIABILITIES |
2020 RMB’000 |
2021 RMB’000 |
|||||||
Advances received from customers |
||||||||
Frequent traveler program |
||||||||
28. |
ACCRUALS AND OTHER PAYABLES |
2020 RMB’000 |
2021 RMB’000 |
|||||||
Due to third parties |
||||||||
Due to related parties |
||||||||
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Payables to GIDC assumed by business combination |
||||||||
Other deposits received |
||||||||
Salary and welfare payables |
||||||||
Deposits received for construction projects |
||||||||
Other taxes payable |
||||||||
Amounts received on behalf of Labor Union |
||||||||
Deposits received from ticketing agencies |
||||||||
Employee benefits obligations (Note 25) |
||||||||
Housing maintenance fund |
||||||||
Payables assumed by capital increase in FVOCI |
||||||||
Other payables |
||||||||
29. |
AUDITORS’ REMUNERATION |
30. |
EMPLOYEE BENEFITS |
2019 RMB’000 |
2020 RMB’000 |
2021 RMB’000 |
||||||||||
Wages and salaries |
||||||||||||
Provision for medical, housing scheme and other employee benefits (a) |
||||||||||||
Contributions to the defined contribution scheme (b) |
||||||||||||
(a) | Housing scheme |
(b) | Defined contribution pension scheme |
(c) | Five highest paid individuals |
31. |
OTHER OPERATING EXPENSES |
2019 RMB’000 |
2020 RMB’000 |
2021 RMB’000 |
||||||||||
Passenger security inspection expenses |
||||||||||||
Carriage cleaning expenses |
||||||||||||
Train station housekeeping expenses |
||||||||||||
Staff accommodation expenses |
||||||||||||
Other safety maintenance expenses |
||||||||||||
Bunk cleaning expenses |
||||||||||||
Passenger transportation facility maintenance |
||||||||||||
Professional expenses |
||||||||||||
Administrative expenses and others |
||||||||||||
32. |
OTHER(LOSSES)/GAINS– NET |
2019 RMB’000 |
2020 RMB’000 |
2021 RMB’000 |
||||||||||
Loss on disposal of fixed assets - net |
( |
) |
( |
) |
( |
) | ||||||
Interest income from banks |
||||||||||||
Government grants |
||||||||||||
Dividend income from FVOCI |
||||||||||||
Income from compensation |
||||||||||||
Impairment of fixed assets, materials and supplies |
( |
) |
( |
) |
( |
) | ||||||
Unwinding of interest accrued on long-term receivable |
||||||||||||
Reversal of renovation cost for the separation and transfer of Facilities |
||||||||||||
Write-back of outstanding of payables |
||||||||||||
Others |
||||||||||||
( |
) |
( |
) |
|||||||||
33. |
FINANCE COSTS - NET |
2019 RMB’000 |
2020 RMB’000 |
2021 RMB’000 |
||||||||||
Interest expense of lease liabilities |
( |
) |
( |
) |
( |
) | ||||||
Net foreign exchange gains/(loss) |
( |
) |
( |
) | ||||||||
Bank charges |
( |
) |
( |
) |
( |
) | ||||||
( |
) |
( |
) |
( |
) | |||||||
34. |
INCOME TAX EXPENSE/(CREDIT) |
2019 RMB’000 |
2020 RMB’000 |
2021 RMB’000 |
||||||||||
Current income tax |
||||||||||||
Deferred income tax (Note 12) |
( |
) |
( |
) |
( |
) | ||||||
( |
) |
( |
) | |||||||||
2019 RMB’000 |
2020 RMB’000 |
2021 RMB’000 |
||||||||||
Profit/(loss) before tax |
( |
) |
( |
) | ||||||||
Tax calculated at the statutory rate of 25% |
( |
) |
( |
) | ||||||||
Effect of expenses not deductible for tax purposes |
||||||||||||
Effect of income not subject to tax |
( |
) |
( |
) |
( |
) | ||||||
Tax losses and temporary differences in accounting base and tax base for which no deferred tax asset was recogni z ed |
||||||||||||
Adjustments for current tax of prior periods |
( |
) |
( |
) | ||||||||
Utilization of previously unrecognized tax losses and temporary differences |
( |
) |
( |
) |
( |
) | ||||||
Income tax expense/(credit) |
( |
) |
( |
) | ||||||||
35. |
EARNINGS/(LOSS) PER SHARE |
2019 RMB’000 |
2020 RMB’000 |
2021 RMB’000 |
||||||||||
Profit/(Loss) attributable to owners of the Company |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Weighted average number of ordinary shares in issue |
||||||||||||
|
|
|
|
|
|
|||||||
Weighted average equivalent ADSs |
||||||||||||
|
|
|
|
|
|
|||||||
Basic and diluted earnings/(loss) per share |
RMB |
RMB( |
) |
RMB( |
) | |||||||
|
|
|
|
|
|
|||||||
Basic and diluted earnings/(loss) per equivalent ADS |
RMB |
RMB( |
) |
RMB( |
) | |||||||
|
|
|
|
|
|
36. |
DIVIDENDS |
37. |
CASH FLOW GENERATED FROM OPERATIONS |
(a) | Reconciliation from profit before income tax to net cash generated from operations: |
2019 |
2020 |
2021 |
||||||||||
RMB’000 |
RMB’000 |
RMB’000 |
||||||||||
Profit/(loss) before income tax: |
( |
) |
( |
) | ||||||||
Adjustments for: |
||||||||||||
Depreciation of fixed assets (Note 6) |
||||||||||||
Depreciation of right-of-use |
||||||||||||
Impairment of fixed assets (Note 6) |
||||||||||||
Gains on disposal of assets classified as held for sale |
( |
) |
||||||||||
Provision for impairment of materials and supplies (Note 18) |
||||||||||||
Loss on disposal of fixed assets and costs on repairs |
||||||||||||
Amortization of long-term prepaid expenses (Note 13) |
||||||||||||
Share of results of associates , net of tax (Note 11) |
( |
) |
( |
) | ||||||||
Dividend income on FVOCI/AFS (Note 32) |
( |
) |
( |
) |
( |
) | ||||||
Reversal of impairment of receivables |
( |
) |
( |
) | ||||||||
Reversal of renovation cost for the separation and transfer of facilities (Note 32) |
( |
) | ||||||||||
Write-back of outstanding of payables (Note 32) |
( |
) |
( |
) | ||||||||
Amortization of deferred income |
( |
) |
( |
) |
( |
) | ||||||
Interest expense on lease liabilities (Note 33) |
||||||||||||
Interest income |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Operating profit before working capital changes |
||||||||||||
(Increase)/decrease in trade receivables |
( |
) |
( |
) | ||||||||
Decrease in materials and supplies |
||||||||||||
(Increase)/decrease in prepayments and other receivables |
( |
) |
( |
) |
||||||||
Decrease in long-term receivable |
||||||||||||
Increase in trade payables |
||||||||||||
Increase/(decrease) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net cash generated from operations |
||||||||||||
|
|
|
|
|
|
37. |
CASH FLOW GENERATED FROM OPERATIONS (CONTINUED) |
(b) | In the cash flow statement, proceeds from disposal of fixed assets comprise: |
2019 |
2020 |
2021 |
||||||||||
RMB’000 |
RMB’000 |
RMB’000 |
||||||||||
Net book amount (Note 6) |
||||||||||||
Payable arising from disposal of fixed assets |
( |
) |
||||||||||
Transfer to materials and supplies |
( |
) |
( |
) |
( |
) | ||||||
Loss on disposal of fixed assets and costs on repairs |
( |
) |
( |
) |
( |
) | ||||||
Proceeds from disposal of fixed assets |
||||||||||||
(c) |
Material non-cash investing activities |
2019 |
2020 |
2021 |
||||||||||
RMB’000 |
RMB’000 |
RMB’000 |
||||||||||
Government grants relating to fixed assets (Note 6) |
— |
— |
||||||||||
38. |
CONTINGENCY |
39. |
COMMITMENTS |
(a) | Capital commitments |
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Contracted but not provided for |
||||||||
Authorized but not contracted for |
||||||||
40. |
RELATED PARTY TRANSACTIONS |
(a) | Related parties that control the Company or are controlled by 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 | |
Guangdong Railway Company Limited. | Subsidiary of the single largest shareholder | |
GIDC | Subsidiary of the single largest shareholder | |
Guangzhou Railway Material Supply Company | Subsidiary of the single largest shareholder | |
Guangzhou Railway Station Service Centre | Subsidiary of the single largest shareholder | |
Guangzhou Yuetie Operational Development Company | Subsidiary of the single largest shareholder | |
Guangzhou Railway Rolling Stock Works Company Limited | Subsidiary of the single largest shareholder | |
Guangdong Tieqing International Travel Agency Company Limited | Subsidiary of the single largest shareholder | |
Xiashen Railway Guangdong Company Limited | Subsidiary of the single largest shareholder | |
Guangzhou Railway Real Estate Construction Engineering Co., Ltd. | Subsidiary of the single largest shareholder | |
Guangdong Yuetong Railway Logistics Company Limited | Subsidiary of the single largest shareholder | |
Sanmao Railway Company Xiaotangxi Freight Field Service Company | Subsidiary of the single largest shareholder | |
Guangzhou Railway Technology Development Co., Ltd. | Subsidiary of the single largest shareholder | |
Guangzhou Anmao Railway Consulting Construction Company Limited | Subsidiary of the single largest shareholder | |
Guangzhou Beiyang Information Technology Company Limited | Subsidiary of the single largest shareholder | |
Hunan Railway Lianchuang Technology Development Co., Ltd. | Subsidiary of the single largest shareholder | |
Guangzhou Northeast Freight Car Outer Winding Railway Co., Ltd. | Subsidiary of the single largest shareholder | |
Hunan Changtie Loading & Unloading Co., Ltd. | Subsidiary of the single largest shareholder | |
Guangzhou Ruiwei Econonmy Development Co., Ltd | Subsidiary of the single largest shareholder | |
Guangzhou Railway Technology Development Surveying Co., Ltd. | Subsidiary of the single largest shareholder |
40. |
RELATED PARTY TRANSACTIONS (CONTINUED) |
(b) | Nature of the principal related parties that do not control/are not controlled by the Company (continued): |
(ii) | Associates of the Group: |
Associates of the Group |
||
Tiecheng | Associate of the Group | |
Shentu | Associate of the Group |
(iii) | Relationship with CSRG and other railway companies |
40. |
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: |
2019 | 2020 | 2021 | ||||||||||
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) |
||||||||||||
Revenue collected by CSRG for railway network usage and related services provided to Guangzhou Railway Group and its subsidiaries (ii) |
||||||||||||
Revenue from railway operation service provided to Guangzhou Railway Group’s subsidiaries (iii) |
||||||||||||
Other services |
||||||||||||
Sales of materials and supplies to Guangzhou Railway Group and its subsidiaries (iv) |
||||||||||||
Services received and purchase made |
||||||||||||
Transportation related services |
||||||||||||
Provision of train transportation services by Guangzhou Railway Group and its subsidiaries (i)(vi) |
||||||||||||
Cost settled by CSRG for railway network usage and related services provided by Guangzhou Railway Group and its subsidiaries (ii) |
||||||||||||
Other services |
||||||||||||
Provision of repair and maintenance services by Guangzhou Railway Group and its subsidiaries (iv) |
||||||||||||
Purchase of materials and supplies from Guangzhou Railway Group and its subsidiaries (iv) |
||||||||||||
Provision of construction services by Guangzhou Railway Group and its subsidiaries (v) |
||||||||||||
(i) | The service charges are determined based on a pricing scheme set by the CSRG or based on negotiation between the contracting parties with reference to actual costs incurred. |
40. |
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 (continued): |
(ii) | Such revenues/charges are determined by the CSRG 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 contracting parties. |
(iv) | The prices are determined based on mutual negotiation between the contracting parties with reference to actual costs incurred. |
(v) | Based on construction amount determined under national railway engineering guidelines. |
(vi) | The amount recognized in 2021 does not include the payment of short term leases related to the lease of passenger trains paid to Guangzhou Railway Group amounting to RMB (2019 and 2020: RMB RMB |
(II) | Material transactions with CSRG and other railway companies |
40. |
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 CSRG and other railway companies (continued): |
2019 | 2020 | 2021 | ||||||||||
RMB’000 | RMB’000 | RMB’000 | ||||||||||
Provision of services and sales of goods |
||||||||||||
Transportation related services |
||||||||||||
Provision of train transportation services to CSRG Group (i) |
||||||||||||
Revenue collected by CSRG for services provided to CSRG Group (ii) |
||||||||||||
Revenue from railway operation service provided to CSRG Group (iii) |
||||||||||||
Other services |
||||||||||||
Provision of repairing services for cargo trucks to CSRG Group (ii) |
||||||||||||
Sales of materials and supplies to CSRG Group (iv) |
||||||||||||
Provision of apartment leasing services to CSRG Group (iv) |
||||||||||||
Others |
||||||||||||
Services received and purchases made |
||||||||||||
Transportation related services |
||||||||||||
Provision of train transportation services by CSRG Group (i)(vi) |
||||||||||||
Cost settled by CSRG for services provided by CSRG Group (ii) (vi) |
||||||||||||
Other services |
||||||||||||
Provision of repair and maintenance services by CSRG Group (iv) |
||||||||||||
Purchase of materials and supplies from CSRG Group (iv) |
||||||||||||
Provision of construction services by CSRG Group (v) |
||||||||||||
(i) | The service charges are determined based on a pricing scheme set by the CSRG or based on negotiation between the contracting parties with reference to actual costs incurred. |
40. |
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 CSRG and other railway companies (continued): |
(ii) | Such revenue/charges are determined by the CSRG 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 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) | Based on construction amounts determined under national railway engineering guidelines. |
(vi) | The amount recognized in 2021 does not include the payment of short term leases related to the lease of passenger trains and freight trains to CSRG amounting to RMB (2019 and 2020: RMB RMB |
(III) | Revenues collected and settled through the CSRG: |
2019 | 2020 | 2021 | ||||||||||
RMB’000 | RMB’000 | RMB’000 | ||||||||||
- Passenger transportation |
||||||||||||
- Freight transportation |
||||||||||||
- Other transportation related services |
||||||||||||
(IV) | Lease – as lessee: |
(d) |
Key management compensation |
40. |
RELATED PARTY TRANSACTIONS (CONTINUED) |
(e) |
As at December 31, 2021 and 2020, the Group had the following material balances maintained with related parties: |
(II) |
Material balances with Guangzhou Railway Group and its subsidiaries: |
2020 |
2021 |
|||||||
RMB’000 |
RMB’000 |
|||||||
Trade receivables |
||||||||
- Guangzhou Railway Group (i) |
||||||||
- Subsidiaries of Guangzhou Railway Group (i) |
||||||||
- Associates |
||||||||
Less: Provision for impairment |
( |
) | ( |
) | ||||
Prepayments and other receivables |
||||||||
- Guangzhou Railway Group |
||||||||
- Subsidiaries of Guangzhou Railway Group |
||||||||
- Associates |
||||||||
Less: Provision for impairment |
( |
) | ( |
) | ||||
Prepayments for fixed assets and construction-in-progress |
||||||||
- Subsidiaries of Guangzhou Railway Group (ii) |
||||||||
- Associates |
||||||||
Trade and bill payables |
||||||||
- Guangzhou Railway Group (i) |
||||||||
- Subsidiaries of Guangzhou Railway Group (ii) |
||||||||
- Associates |
||||||||
Payables for fixed assets and construction-in-progress |
||||||||
- Guangzhou Railway Group |
||||||||
- Subsidiaries of Guangzhou Railway Group |
||||||||
- Associates |
||||||||
Contract liabilities |
||||||||
- Subsidiaries of Guangzhou Railway Group |
||||||||
- Associates |
||||||||
Accruals and other payables |
||||||||
- Guangzhou Railway Group |
||||||||
- Subsidiaries of Guangzhou Railway Group (iii) |
||||||||
- Associates (iv) |
(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. |
40. |
RELATED PARTY TRANSACTIONS (CONTINUED) |
(e) |
As at December 31, 2021 and 2020, the Group had the following material balances maintained with related parties (continued): |
(I) |
Material balances with Guangzhou Railway Group and its subsidiaries (continued): |
(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. |
(II) |
Material balances with CSRG Group: |
2020 | 2021 | |||||||
RMB’000 | RMB’000 | |||||||
Due from CSRG Group |
||||||||
- Trade receivables |
||||||||
- Other receivables |
||||||||
Due to CSRG Group |
||||||||
- Trade payables and payables for fixed assets and construction-in-progress |
||||||||
- Other payables |
||||||||