TRADE RECEIVABLES

12 Months Ended

Dec. 31, 2021

TRADE RECEIVABLES [abstract]

Disclosure of trade receivables

19. TRADE RECEIVABLES

	2020			2021
	RMB’000			RMB’000
Trade receivables		3,782,381			4,419,925
Including: receivables from related parties		2,955,797			3,664,894
Less: Provision for impairment of receivables		(60,704	)		(23,751	)
		3,721,677			4,396,174

As at December 31, 2021 and 2020, the Group’s trade receivables were all denominated in RMB. The majority of the trade receivable were from state-owned railroad companies or companies in transportation industry.

The passenger railroad services are usually transacted on a cash basis. The Group does not have formal contractual credit terms agreed with its customers for freight services but the trade receivables are usually settled within a period less than one year. As a result, the Group regards any receivable balance within one year being not overdue. The aging analysis of the outstanding trade receivables is as follows:

	2020		2021
	RMB’000		RMB’000
Within 1 year		2,773,713		3,655,942
Over 1 year but within 2 years		653,062		762,258
Over 2 years but within 3 years		306,410		1,725
Over 3 years		49,196		—
		3,782,381		4,419,925

The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss provision for all trade receivables.

Movements on the provision for impairment of trade receivables are as follows:

	2019			2020			2021
	RMB’000			RMB’000			RMB’000
At December 31		61,212			61,135			60,704
Reversal of impairment loss provision		—			(358	)		(36,953	)
Written-off		(77	)		(73	)		—
At December 31		61,135			60,704			23,751

The maximum exposure to credit risk at the reporting date is the carrying value mentioned above. The Group does not hold any collateral as security.