1. FIXED ASSETS - NET

Buildings

Tracks,
bridges and
service roads

Locomotives
and rolling
stock

Communications
and signaling
systems

Other
machinery and
equipment

Total

RMB’000

At January 1, 2019

Cost

7,590,161

14,735,949

8,218,284

2,034,318

6,631,867

39,210,579

Accumulated depreciation

(2,835,968)

(3,522,517)

(2,608,404)

(1,595,335)

(4,453,743)

(15,015,967)

Impairment

(2,881)

(7,483)

(10,364)

Net book amount

4,751,312

11,213,432

5,609,880

438,983

2,170,641

24,184,248

Year ended December 31, 2019

Opening net book amount

4,751,312

11,213,432

5,609,880

438,983

2,170,641

24,184,248

Other additions

4,975

2,185

948

96,443

104,579

Transfer in from construction-in-progress (Note 7)

238,599

110,172

65,903

87,732

241,212

743,618

Transfer out to construction-in-progress for improvement/ modifications(Note 7)

(10,523)

(44,034)

(484,992)

(24,994)

(27,658)

(592,201)

Transfer in from construction-in-progress after repair

27,451

121,591

716,082

28,712

58,802

952,638

Reclassifications

(102)

102

238

(412)

174

Disposals

(8,529)

(87,439)

(49,855)

(5,526)

(17,468)

(168,817)

Depreciation charges

(321,779)

(214,909)

(661,484)

(87,880)

(351,246)

(1,637,298)

Impairment charge

(20,697)

Impairment write-off

Closing net book amount

4,660,707

11,101,100

5,196,720

436,643

2,170,911

23,566,081

At December 31, 2019

Cost

7,825,870

14,817,730

8,102,522

1,852,565

6,757,634

39,356,321

Accumulated depreciation

(3,141,585)

(3,716,630)

(2,905,802)

(1,415,922)

(4,579,251)

(15,759,190)

Impairment

(23,578)

(7,472)

(31,050)

Net book amount

4,660,707

11,101,100

5,196,720

436,643

2,170,911

23,566,081

Year ended December 31, 2020

Opening net book amount

4,660,707

11,101,100

5,196,720

436,643

2,170,911

23,566,081

Other additions

4,196

47,666

2,178

98,138

152,179

Transfer in from construction-in-progress (Note 7)

396,446

198,800

1,932

28,733

154,590

780,501

Transfer out to construction-in-progress for improvement/ modifications(Note 7)

(129)

(231,996)

(434,216)

(9,759)

(9,028)

(685,129)

Transfer in from construction-in-progress after repair

6,291

292,244

744,298

38,726

20,241

1,101,800

Reclassifications

(45)

Disposals

(26,206)

(95,020)

(68,749)

(5,747)

(29,281)

(225,003)

Depreciation charges

(335,123)

(218,396)

(669,210)

(90,451)

(348,999)

(1,662,179)

Impairment charge

(11,835)

Closing net book amount

4,706,182

11,046,732

4,806,606

400,368

2,056,527

23,016,415

At December 31, 2020

Cost

8,183,873

14,896,863

7,750,874

1,829,279

6,837,991

39,498,880

Accumulated depreciation

(3,454,113)

(3,850,131)

(2,932,433)

(1,428,911)

(4,773,992)

(16,439,580)

Impairment

(23,578)

(11,835)

(7,472)

(42,885)

Net book amount

4,706,182

11,046,732

4,806,606

400,368

2,056,527

23,016,415

(a) As at December 31, 2020, the ownership certificates of certain buildings of the Group with an aggregate carrying value of approximately RMB1,518,731,000 (2019: RMB1,626,540,000) had not been obtained by the Group.

These kind of buildings are classified as below:

Carrying value as at

December 31 2019

RMB’000

Carrying value as at

December 31

2020

RMB’000

Reason for delay in obtaining

the ownership certificates

Certificates for buildings under application procedures

1,040,897

980,689

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

49,846

48,103

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

535,797

489,939

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.

After consultation made with the Company’s legal counsel, the directors of the Company consider that there is no legal restriction for the Group to apply for and obtain the ownership certificates of these buildings and it should not lead to any significant adverse impact on the operations of the Group.

(b) As at December 31, 2020, fixed assets of the Group with an aggregate net book value of approximately RMB171,954,000 (2019: RMB172,218,000) had been fully depreciated but they were still in use.

1. FIXED ASSETS - NET