SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2021

Disclosure of operating segments [abstract]

Disclosure of segment information

5. SEGMENT INFORMATION

The chief operating decision-makers have been identified as the senior executives of the Company. Senior executives of the Company review the Group’s internal reporting in order to assess performance and allocate resources. The operating segments were determined based on these management reports.

Senior executives evaluate the business from a perspective of revenues and operating results generated from railroad and related business conducted by the Company (“the Railway Transportation Business”). Other segments mainly include on-board catering services, leasing, sales of materials, sale of goods and other businesses related to railway transportation provided by the subsidiaries of the Company. Senior executives of the Company assess the performance of the operating segments based on a measure of the profit before income tax. Other information provided, except as noted below, to senior executives of the Company is measured in a manner consistent with that in the consolidated financial statements.

The segment results for 2019, 2020 and 2021 are as follows:

	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		20,025,568			15,385,428			19,019,131			—			—			—			—			—			—			20,025,568			15,385,428			19,019,131
– Revenue from external customers		20,025,568			15,385,428			19,019,131			—			—			—			—			—			—			—			—			19,019,131
– Inter segment revenue		—			—			—			—			—			—			—			—			—			—			—			—
– Other Businesses		938,066			859,658			1,081,538			271,452			144,203			205,608			(56,735	)		(39,923	)		(100,120	)		1,152,783			963,938			1,187,026
– Revenue from external customers		938,066			859,658			1,081,538			214,717			104,280			105,488			—			—			—			1,152,783			963,938			1,187,026
– Inter segment revenue		—			—			—			56,735			39,923			100,120			(56,735	)		(39,923	)		(100,120	)		—			—			—
Total revenue		20,963,634			16,245,086			20,100,669			271,452			144,203			205,608			(56,735	)		(39,923	)		(100,120	)		21,178,351			16,349,366			20,206,157
Timing of revenue recognition
– Over time		20,826,847			16,139,060			19,908,398			110,214			47,619			111,941			(56,735	)		(39,923	)		(100,120	)		20,880,326			16,146,756			19,920,219
– At a point in time		136,787			85,664			154,811			161,238			74,118			71,895			—			—			—			298,025			159,782			226,706
– Lease		—			20,362			37,460			—			22,466			21,772			—			—			—			—			42,828			59,232
		20,963,634			16,245,086			20,100,669			271,452			144,203			205,608			(56,735	)		(39,923	)		(100,120	)		21,178,351			16,349,366			20,206,157
Segment result		1,045,581			(584,770	)		(1,150,323	)		(36,489	)		(105,975	)		(93,152	)		—			—			(6,111	)		1,009,092			(690,745	)		(1,249,586	)
Finance costs - net		56,439			60,464			74,382			271			181			194			—			—			—			56,710			60,645			74,576
Share of results of associates, net of tax		(7,039	)		22,162			18,144			—			—			—			—			—			—			(7,039	)		22,162			18,144
Depreciation of fixed assets		1,633,185			1,657,475			1,781,921			4,113			4,704			4,190			—			—			—			1,637,298			1,662,179			1,786,110
Depreciation of right-of-use assets		53,992			54,179			57,078			11,332			11,332			11,332			—			—			—			65,324			65,511			68,410
Amortization of long-term prepaid expenses		16,008			18,886			26,760			430			454			621			—			—			—			16,438			19,340			27,381
Impairment of fixed assets		20,697			11,835			16,796			—			—			—			—			—			—			20,697			11,835			16,796
Provision for impairment of materials and supplies		10,793			—			5,695			—			—			—			—			—			—			10,793			—			5,695
Reversal of impairment losses on financial assets		—			(78	)		(40,608	)		—			(280	)		(5	)		—			—			—			—			(358	)		(40,613	)

A reconciliation of the segment results to profit/(loss) of 2019, 2020 and 2021 is as follows:

	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		1,045,581			(584,770	)		(1,150,323	)		(36,489	)		(105,975	)		(93,152	)		—		—		(6,111	)		1,009,092			(690,745	)		(1,249,586	)
Income tax (expense)/credit		(262,942	)		130,468			272,442			1,814			2,177			3,181			—		—		—			(261,128	)		132,645			275,623
Profit/(loss) for the year		782,639			(454,302	)		(877,881	)		(34,675	)		(103,798	)		(89,971	)		—		—		(6,111	)		747,964			(558,100	)		(973,963	)

The Group is domiciled in the PRC. All the Group’s revenues were generated in the PRC, and the total assets are also located in the PRC.

	The Railway Transportation Business				All other segments				Elimination						Total
	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		36,573,556		37,375,745		443,479		425,806		(236,582	)		(398,129	)		36,780,453		37,403,422
Total segment assets include:
Investment in associates		196,848		225,338		—		—		—			—			196,848		225,338
Additions to non-current assets (other than financial instruments and deferred tax assets)		1,748,748		1,744,117		679		662		—			—			1,749,427		1,744,779
Total segment liabilities		8,184,773		9,767,619		656,875		735,783		(217,364	)		(304,415	)		8,624,284		10,198,986

Revenues of approximately RMB5,511,617,000 (2019: RMB4,400,273,000 and 2020: RMB4,502,560,000) were derived from Guangzhou Railway Group and its subsidiaries. These revenues are attributable to the Railway Transportation Business. Except that, no revenues derived from a single external customer have exceeded 10% of the total revenues.