The movement of investments in associates of the Group during the year is as follows:


	2019			2020		2021
	RMB’000			RMB’000		RMB’000
Beginning of the year		181,725			174,686		196,848
Share of results after tax		(7,039	)		22,162		18,144
Equity dilution (a)		—			—		10,346

End of the year		174,686			196,848		225,338

As at December 31, 2021, the Group had direct interests in the following companies which are incorporated/established and are operating in the PRC:


Name of the entity	Percentage of equity interest attributable to the Company	Paid-in capital		Principal activities
Guangzhou Tiecheng Enterprise Company Limited (“Tiecheng”)	49%		RMB343,050,000	Properties leasing and trading of merchandise
Shenzhen Guangzhou Railway Civil Engineering Company (“Shentu”) (a)	24.42%		RMB206,670,000	Construction of railroad properties

The above associates are limited liability companies and are unlisted companies. There are no significant contingent liabilities relating to the Group’s interest in the associates and there are no significant restrictions on the transfer of assets or earnings from the associates to the Group.

(a)

On March 2021, according to the resolution passed in the shareholders’ meeting of Shentu, Guangzhou Railway Group increased investment amounted to RMB156,200,000 to Shentu with the equity interests of four subsidiaries, thus the proportion of equity interests in Shentu held by Guangzhou Railway Group was changed from 51% to 75.58%, and the proportion of equity interests in Shentu held by the Company was diluted from 49% to 24.42%. The Group recognized dilution gain amounted to RMB10,346,000 in other reserve.

Set out below are the summarized financial information for Tiecheng and Shentu which are accounted for using the equity method in the consolidated financial statements.

Summarized balance sheets:


	Tiecheng				Shentu
	2020		2021		2020		2021
	RMB’000		RMB’000		RMB’000		RMB’000
Current assets		93,571		112,241		1,974,930		3,311,999
Non-current assets		373,860		367,349		10,209		31,500

Total assets		467,431		479,590		1,985,139		3,343,499

Current liabilities		221,928		219,973		1,828,909		2,941,676

Equity		245,503		259,617		156,230		401,823

Share of net assets		120,296		127,213		76,552		98,125

Carrying amount of interest in associates		120,296		127,213		76,552		98,125

Summarized comprehensive income statements:


	Tiecheng							Shentu
	2019			2020		2021		2019		2020		2021
	RMB’000			RMB’000		RMB’000		RMB’000		RMB’000		RMB’000
Revenue		45,673			43,241		46,371		1,222,250		1,519,711		3,039,786
Net profit/(loss)		(23,350	)		29,202		14,114		8,986		16,027		54,062

Total comprehensive income/(loss) for the year		(23,350	)		29,202		14,114		8,986		16,027		54,062

Reconciliation of the summarized financial information presented to the carrying amount of its interests in associates as follows:


	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		239,651			216,301			245,503			131,217			140,203			156,230			370,868			356,504		401,733
(Loss)/profit for the year		(23,350	)		29,202			14,114			8,986			16,027			54,062			(14,364	)		45,229		68,176
Increase in net assets arising from capital injection by other shareholder (a)		—			—			—			—			—			191,531			—			—		191,531

Closing net assets		216,301			245,503			259,617			140,203			156,230			401,823			356,504			401,733		661,440

Percentage of ownership interest		49.00	%		49.00	%		49.00	%		49.00	%		49.00	%		24.42	%		—			—		—

Carrying value		105,987			120,296			127,213			68,699			76,552			98,125			174,686			196,848		225,338