5 7 CONSTRUCTION-IN-PROGRESS

2016

2017

RMB’000

At 1 January

569,573

790,308

Additions due to business combination

59,992

Transfer in from fixed assets for improvement/modifications

(Note 6)

206,386

1,311,646

Other additions

1,448,767

2,185,526

Transfer to fixed assets (Note 6)

(1,017,713)

(1,653,431)

Transfer out to fixed assets after improvement/modifications

(Note 6)

(471,035)

(1,203,378)

Impairment

(5,662)

At 31 December

790,308

1,430,671

Construction-in-progress as at 31 December 2017 mainly comprise of improvement projects for road existing railway equipment in the PRC.

For the year ended 31 December 2017, no interest expense (2016: Nil) had been capitalised in the construction-in-progress balance as there were no third party borrowings during the year.

5 7 CONSTRUCTION-IN-PROGRESS