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RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
 12 Months Ended
Dec. 31, 2021
Disclosure of quantitative information about leases for lessee [abstract]  
Disclosure of right-of-use and lease liabilities
 
8.
RIGHT-OF-USE
ASSETS AND LEASE LIABILITIES
 
(1)
RIGHT-OF-USE
ASSETS
 
     2021  
    
Land use
right (a)
     
Lease of
Land use right
      Total  
     RMB’000      RMB’000      RMB’000  
Cost
                           
As at December 31, 2020
      2,398,881        1,379,254        3,778,135  
Additions
      334        989        1,323  
    
 
 
     
 
 
     
 
 
  
As at December 31, 2021
      2,399,215        1,380,243        3,779,458  
    
 
 
     
 
 
     
 
 
  
Accumulated depreciation
                           
As at December 31, 2020
      (567,909 )       (26,756 )       (594,665 ) 
Additions
      (52,163 )       (16,248 )       (68,411 ) 
    
 
 
     
 
 
     
 
 
  
As at December 31, 2021
      (620,072 )       (43,004 )       (663,076 ) 
    
 
 
     
 
 
     
 
 
  
Net book value
                           
As at December 31, 2021
      1,779,143        1,337,239        3,116,382  
    
 
 
     
 
 
     
 
 
  
As at December 31, 2020
      1,830,972        1,352,498        3,183,470  
    
 
 
     
 
 
     
 
 
  
 
(2)
LEASE LIABILITIES
 
 
  
2021
 
  
2020
 
 
  
RMB’000
 
  
RMB’000
 
Lease liabilities
  
 
1,384,084
 
  
 
1,377,573
 
Less: current portion of lease liabilities
  
 
(63,249
) 
  
 
(61,880
) 
 
  
 
 
 
  
 
 
 
 
  
 
1,320,835
 
  
 
1,315,693
 
 
  
 
 
 
  
 
 
 
The amounts recognized in the Consolidated Comprehensive Income Statement for the year relating to the lease contracts are as follows:
 
     2020      2021  
     RMB’000      RMB’000  
Depreciation charge of
right-of-use
assets
      65,511        68,410  
Interest expense on lease liabilities
      57,629       
67,648
  
Expense relating to short-term leases
      846,606        1,688,137  
    
 
 
     
 
 
  
       969,746        1,824,196  
    
 
 
     
 
 
  
The total cash outflow for leases in 2021 was RMB1,749,164,000 (2020: RMB907,355,000)
The remaining lease period of
right-of-use
assets as at December 31, 2021 was lease of between 3 to 85 years.
 
(a)
As at December 31, 2021, the ownership certificates of land with an aggregate carrying value of approximately RMB52,884,000 (2020: RMB54,882,000)
 
that was acquired through assets/business acquisition and group restructuring have not yet been changed from the names of the respective original owners to the name of the Company; and the ownership certificates of the land use rights of the Group with an aggregate carrying value of approximately RMB1,154,591,000 (2020: RMB1,182,379,000) had not been obtained by the Group due to the following fact:
 
 
  
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    1,154,591    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.
After consultation made with the Company’s legal counsel, the directors of the Company consider that there is no legal restriction for the Group or the Company to apply for and obtain the land use right certificates and it should not lead to any significant adverse impact on the operations of the Group or the Company.