Guangdong Provincial Expressway Development Co. Ltd.The Semi-Annual Financial Report 2020
I. Audit report
Has this semi-annual report been audited?
□Yes √No
The semi-annual report was not audited.II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by: Guangdong Provincial Expressway Development Co. Ltd.June 302020
In RMB
Items June 302020 December 302019
Current asset：
Monetary fund 3059496742.46 2817920894.50
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 134069638.15 125343724.66
Financing of receivables
Prepayments 3072462.33 10894246.41
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 22983175.46 26618178.57
Including：Interest receivable
Dividend receivable 10955472.90 7205472.90
Items June 302020 December 302019
Repurchasing of financial assets
Inventories 111683.22 111683.22
Contract assets 5246547.77
Assets held for sales
Non-current asset due within 1 year 51745.32 51745.32
Other current asset 310673.32
Total of current assets 3225342668.03 2980940472.68
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other investment on bonds
Long-term receivable
Long term share equity investment 3311674455.49 3255739898.36
Other equity instruments investment 1640561001.25 1835822604.77
Other non-current financial assets
Property investment 3220941.13 3331500.37
Fixed assets 8709189223.95 8925700473.65
Construction in progress 169594866.22 229098299.48
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 5394247.13 6393895.17
Development expenses
Goodwill
Long-germ expenses to be amortized 1061255.72 1114764.44
Deferred income tax asset 372498584.43 385494106.13
Other non-current asset 34923769.57 50909325.73
Total of non-current assets 14248118344.89 14693604868.10
Total of assets 17473461012.92 17674545340.78
Current liabilities
Short-term loans
Loan from Central Bank
Items June 302020 December 302019
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 304813240.45 290657734.31
Advance receipts 11199716.35 15605094.69
Contract liabilities 108100.88
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 20189767.97 14822524.70
Tax payable 37853454.17 84257586.94
Other account payable 1425833813.99 626180586.92
Including：Interest payable
Dividend payable 954302889.90 20020119.31
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 159172771.75 795861958.07
Other current liability 1603872.74 189628.17
Total of current liability 1960774738.30 1827575113.80
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 4704892500.00 4640425000.00
Bond payable 1426014144.87 678124972.89
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 40406172.36 39369379.91
Long-term remuneration payable to staff
Expected liabilities
Deferred income 32279824.81
Items June 302020 December 302019
Deferred income tax liability 192395432.59 238453976.29
Other non-current liabilities
Total non-current liabilities 6395988074.63 5596373329.09
Total of liability 8356762812.93 7423948442.89
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2566524645.31 2562570465.31
Less：Shares in stock
Other comprehensive income 238280420.37 382193344.90
Special reserve
Surplus reserves 910425068.90 910425068.90
Common risk provision
Retained profit 2989281402.29 3877431844.64
Total of owner’s equity belong to the
parent company
8795317662.87 9823426849.75
Minority shareholders’ equity 321380537.12 427170048.14
Total of owners’ equity 9116698199.99 10250596897.89
Total of liabilities and owners’ equity 17473461012.92 17674545340.78
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
2.Parent Company Balance Sheet
In RMB
Items June 302020 December 312019
Current asset：
Monetary fund 3009059379.39 2791384501.78
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 21134758.62 21864051.27
Financing of receivables
Prepayments 1477900.00 1737598.88
Other account receivable 173590519.85 13435651.19
Including：Interest receivable
Dividend receivable 166906851.62 7205472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year 178335084.79 151637139.08
Other current asset 310673.32
Total of current assets 3383908315.97 2980058942.20
Non-current assets：
Debt investment 539903684.98 537903684.98
Other investment on bonds
Long-term receivable
Long term share equity investment 4845339464.30 4789404907.17
Other equity instruments investment 1640561001.25 1835822604.77
Other non-current financial assets
Property investment 2968802.88 3079362.12
Fixed assets 6600491692.05 6818701482.08
Construction in progress 21047579.91 46952925.08
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 2151767.67 2533878.12
Items June 302020 December 312019
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 372284373.89 385296935.33
Other non-current asset 20941346.07 36901029.57
Total of non-current assets 14045689713.00 14456596809.22
Total of assets 17429598028.97 17436655751.42
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 176971650.64 129930285.56
Advance receipts
Contract Liabilities
Employees’ wage payable 5941810.21 6340740.61
Tax payable 5063328.85 8704510.83
Other account payable 1330815068.94 582131356.01
Including：Interest payable
Dividend payable 902319096.99 20020119.31
Liabilities held for sales
Non-current liability due within 1
year
121198409.74 744589133.72
Other current liability 660427825.56 821133339.57
Total of current liability 2300418093.94 2292829366.30
Non-current liabilities：
Long-term loan 4223862500.00 4243730000.00
Bond payable 1426014144.87 678124972.89
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 40406172.36 39369379.91
Long-term remuneration payable to
staff
Items June 302020 December 312019
Expected liabilities
Deferred income 15044550.85
Deferred income tax liability 81162955.68 129978356.56
Other non-current liabilities
Total non-current liabilities 5786490323.76 5091202709.36
Total of liability 8086908417.70 7384032075.66
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2978412876.93 2974458696.93
Less：Shares in stock
Other comprehensive income 238280420.37 382193344.90
Special reserve
Surplus reserves 894580785.25 894580785.25
Retained profit 3140609402.72 3710584722.68
Total of owners’ equity 9342689611.27 10052623675.76
Total of liabilities and owners’
equity
17429598028.97 17436655751.42
Legal Representative :Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
3.Consolidated Income statement
In RMB
Items The first half year of 2020 The first half year of 2019
I. Income from the key business 660898961.79 1483673245.21
Incl：Business income 660898961.79 1483673245.21
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 714453628.80 736685807.33
Incl：Business cost 524175125.06 549623810.49
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance
contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 3673803.97 6557023.97
Sales expense
Administrative expense 67990919.48 76975210.47
R & D costs
Financial expenses 118613780.29 103529762.40
Including：Interest expense 131774768.90 115040857.71
Interest income 14760756.18 15761707.69
Add: Other income 3871289.20 420227.62
Investment gain（“-”for loss） 106638564.53 276241866.32
Incl: investment gains from affiliates 55853351.49 237712998.09
Financial assets measured at
amortized cost cease to be recognized
as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Items The first half year of 2020 The first half year of 2019
Credit impairment loss -236683.81
Impairment loss of assets
Assets disposal income 4.37 13129094.29
III. Operational profit（“-”for loss） 56718507.28 1036778626.11
Add ：Non-operational income 4077676.95 735359.76
Less: Non-operating expense 2192008.48 4231407.95
IV. Total profit(“-”for loss) 58604175.75 1033282577.92
Less：Income tax expenses 43240151.04 189696774.05
V. Net profit 15364024.71 843585803.87
(I) Classification by business
continuity
1.Net continuing operating profit
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners
of parent company
-5830257.18 736486112.30
2.Minority shareholders’ equity 21194281.89 107099691.57
VI. Net after-tax of other
comprehensive income
-143912924.53 18938083.74
Net of profit of other comprehensive in
come attributable to owners of the pare
nt company.
-143912924.53 18938083.74
（I）Other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period
-146446202.64 19408532.88
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under t
he equity method investee can not be re
classified into profit or loss.
3. Changes in the fair value of
investments in other equity instruments
-146446202.64 19408532.88
4. Changes in the fair value of the
company’s credit risks
Items The first half year of 2020 The first half year of 2019
5.Other（II）
Other comprehensive income that will
be reclassified into profit or loss.
2533278.11 -470449.14
1.Other comprehensive income under t
he equity method investee can be reclas
sified into profit or loss.
2533278.11 -470449.14
2. Changes in the fair value of
investments in other debt obligations
3. Other comprehensive income arising
from the reclassification of financial
assets
4.Allowance for credit impairments in
investments in other debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency fi
nancial statements
7.Other
Net of profit of other comprehensive in
come attributable to Minority
shareholders’ equity
VII. Total comprehensive income -128548899.82 862523887.61
Total comprehensive income
attributable to the owner of the parent
company
-149743181.71 755424196.04
Total comprehensive income
attributable minority shareholders
21194281.89 107099691.57
VIII. Earnings per share
（I）Basic earnings per share -0.0028 0.35
(II)Diluted earnings per share -0.0028 0.35
The current business combination under common control the net profits of the combined party before achieved ne
t profit of RMB 0.00 last period the combined party realized RMB0.00.Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
4. Income statement of the Parent Company
In RMB
Items The first half year of 2020 The first half year of 2019
I. Income from the key business 293579730.04 623126517.35
Incl：Business cost 328657958.84 329190674.52
Business tax and surcharge 2414928.72 3486292.37
Sales expense
Administrative expense 40263656.49 46996060.64
R & D expense
Financial expenses 111941828.19 96377160.24
Including：Interest expenses 126623134.06 109559414.30
Interest income 14718213.69 15652128.26
Add：Other income 1348815.87 70758.72
Investment gain（“-”for loss） 513084202.15 975659501.70
Including: investment gains from
affiliates
55853351.49 237712998.09
Financial assets measured at
amortized cost cease to be recognized
as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets
Assets disposal income 4.37
II. Operational profit（“-”for loss） 324734380.19 1122806590.00
Add ：Non-operational income 1033092.43 298935.96
Less：Non -operational expenses 410045.97 370829.17
III. Total profit(“-”for loss) 325357426.65 1122734696.79
Less：Income tax expenses 13012561.44 44083178.65
IV. Net profit 312344865.21 1078651518.14
1.Net continuing operating profit 312344865.21 1078651518.14
2.Termination of operating net profit
V. Net after-tax of other
comprehensive income
-143912924.53 18938083.74
（I）Other comprehensive income -146446202.64 19408532.88
Items The first half year of 2020 The first half year of 2019
items that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit
plans of changes in net debt or net ass
ets
2.Other comprehensive income under
the equity method investee can not b
e reclassified into profit or loss.
3. Changes in the fair value of
investments in other equity
instruments
-146446202.64 19408532.88
4. Changes in the fair value of the
company’s credit risks
5.Other
(II)Other comprehensive income that
will be reclassified into profit or loss
2533278.11 -470449.14
1.Other comprehensive income under
the equity method investee can be re
classified into profit or loss.
2533278.11 -470449.14
2. Changes in the fair value of
investments in other debt obligations
3. Other comprehensive income
arising from the reclassification of
financial assets
4.Allowance for credit impairments
in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency
financial statements
7.Other
VI. Total comprehensive income 168431940.68 1097589601.88
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2020 The first half year of 2019
I.Cash flows from operating activities
Cash received from sales of goods or
rending of services
663862643.34 1509571069.40
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central
bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original
insurance contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Cash received from interest
commission charge and commission
Net increase of inter-bank fund
received
Net increase of repurchasing business
Net cash received by agent in
securities trading
Tax returned 77578.62
Other cash received from business
operation
72322240.45 25618718.28
Sub-total of cash inflow 736262462.41 1535189787.68
Cash paid for purchasing of
merchandise and services
67174129.05 92703135.93
Net increase of client trade and
advance
Items The first half year of 2020 The first half year of 2019
Net increase of savings in central
bank and brother company
Cash paid for original contract
claim
Net increase in financial assets
held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest processing
fee and commission
Cash paid to staffs or paid for staffs 131184471.77 143256732.77
Taxes paid 99376789.76 210497035.66
Other cash paid for business activities 20620967.49 37921786.09
Sub-total of cash outflow from
business activities
318356358.07 484378690.45
Net cash generated from /used in
operating activities
417906104.34 1050811097.23
II. Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 133441465.51 176375388.78
Net cash retrieved from disposal of
fixed assets intangible assets and
other long-term assets
17625.00 13961500.00
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow due to
investment activities
133459090.51 190336888.78
Cash paid for construction of fixed
assets intangible assets and
other long-term assets
191735294.09 414305542.74
Cash paid as investment 80000000.00
Net increase of loan against pledge
Net cash received from subsidiaries
and other operational units
Other cash paid for investment
Items The first half year of 2020 The first half year of 2019
activities
Sub-total of cash outflow due to
investment activities
271735294.09 414305542.74
Net cash flow generated by
investment
-138276203.58 -223968653.96
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as
investment from minor shareholders
Cash received as loans 1195000000.00 2231700000.00
Other financing –related cash
received
Sub-total of cash inflow from
financing activities
1195000000.00 2231700000.00
Cash to repay debts 1083917500.00 1620130000.00
Cash paid as dividend profit or
interests
148014375.80 1522586583.81
Including: Dividend and profit paid
by subsidiaries to minor shareholders
75000000.00 220140964.92
Other cash paid for financing
activities
1122177.00 791384.00
Sub-total of cash outflow due to
financing activities
1233054052.80 3143507967.81
Net cash flow generated by financing -38054052.80 -911807967.81
IV. Influence of exchange rate
alternation on cash and cash
equivalents
-1534520.73
V.Net increase of cash and cash
equivalents
241575847.96 -86500045.27
Add: balance of cash and cash
equivalents at the beginning of term
2816699694.50 2123303796.32
VI ..Balance of cash and cash
equivalents at the end of term
3058275542.46 2036803751.05
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2020 The first half year of 2019
I.Cash flows from operating activities
Cash received from sales of goods or
rending of services
302123119.55 641027153.33
Tax returned
Other cash received from business
operation
63304430.86 24885810.30
Sub-total of cash inflow 365427550.41 665912963.63
Cash paid for purchasing of
merchandise and services
15346627.62 24226244.52
Cash paid to staffs or paid for staffs 52390979.85 56174438.87
Taxes paid 13428897.71 24543436.06
Other cash paid for business activities 201770756.58 444674884.91
Sub-total of cash outflow from
business activities
282937261.76 549619004.36
Net cash generated from /used in
operating activities
82490288.65 116293959.27
II. Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 358767434.26 846967754.67
Net cash retrieved from disposal of
fixed assets intangible assets and
other long-term assets
6300.00 3700.00
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow due to
investment activities
358773734.26 846971454.67
Cash paid for construction of fixed
assets intangible assets and
other long-term assets
118535092.50 399081697.08
Items The first half year of 2020 The first half year of 2019
Cash paid as investment 82000000.00
Net cash received from subsidiaries
and other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
investment activities
200535092.50 399081697.08
Net cash flow generated by
investment
158238641.76 447889757.59
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 1135000000.00 1845000000.00
Other financing –related ash
received
Sub-total of cash inflow from
financing activities
1135000000.00 1845000000.00
Cash to repay debts 1083917500.00 1197780000.00
Cash paid as dividend profit or
interests
73014375.80 1289730502.83
Other cash paid for financing
activities
1122177.00 791384.00
Sub-total of cash outflow due to
financing activities
1158054052.80 2488301886.83
Net cash flow generated by financing -23054052.80 -643301886.83
IV. Influence of exchange rate
alternation on cash and cash
equivalents
-1534520.73
V.Net increase of cash and cash
equivalents
217674877.61 -80652690.70
Add: balance of cash and cash
equivalents at the beginning of term
2790163301.78 2095376368.04
VI ..Balance of cash and cash
equivalents at the end of term
3007838179.39 2014723677.34
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Items
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Minor
shareholders
’ equity
Total of
owners’
equity
Share
Capital
Other Equity instrument
Capital
reserves
Less:
Shares
in
stock
Other
Comprehensive
Income
Specialized
reserve
Surplus
reserves
Common
risk
provision
Retained
profit
Other Subtotal Preferred
stock
Sustainable
debt
Other
I.Balance at the end
of last year
20908
06126.
00
256257
0465.31
382193344.90
910425
068.90
387743
1844.64
98234
26849.
75
427170048.
14
1025059
6897.89
Add: Change of
accounting policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
beginning of current
year
20908
06126.
00
256257
0465.31
382193344.90
910425
068.90
387743
1844.64
98234
26849.
75
427170048.
14
1025059
6897.89
III.Changed in the
current year
395418
0.00
-143912924.5
3
-888150
442.35
-10281
09186.
88
-105789511
.02
-1133898
697.90
Items
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Minor
shareholders
’ equity
Total of
owners’
equity
Share
Capital
Other Equity instrument
Capital
reserves
Less:
Shares
in
stock
Other
Comprehensive
Income
Specialized
reserve
Surplus
reserves
Common
risk
provision
Retained
profit
Other Subtotal Preferred
stock
Sustainable
debt
Other
（1）Total
comprehensive
income
-143912924.5
3
-583025
7.18
-14974
3181.7
1
21194281.8
9
-1285488
99.82（II）Investment or
decreasing of capital
by owners
1Ordinary Shares in
vested by sharehold
ers
2Holders of other eq
uity instruments inv
ested capital
3．Amount of shares
paid and accounted
as owners’ equity
4．Other（III）Profit
allotment
-882320
185.17
-88232
0185.1
7
-12698379
2.91
-1009303
978.08
1.Providing of
surplus reserves
Items
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Minor
shareholders
’ equity
Total of
owners’
equity
Share
Capital
Other Equity instrument
Capital
reserves
Less:
Shares
in
stock
Other
Comprehensive
Income
Specialized
reserve
Surplus
reserves
Common
risk
provision
Retained
profit
Other Subtotal Preferred
stock
Sustainable
debt
Other
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
-882320
185.17
-88232
0185.1
7
-12698379
2.91
-1009303
978.08
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves (or
to capital shares)
3．Making up losses
by surplus reserves.
4.Change amount of
defined benefit
plans that carry
forward
Retained earnings
Items
The first half year of 2020
Owner’s equity Attributable to the Parent Company
Minor
shareholders
’ equity
Total of
owners’
equity
Share
Capital
Other Equity instrument
Capital
reserves
Less:
Shares
in
stock
Other
Comprehensive
Income
Specialized
reserve
Surplus
reserves
Common
risk
provision
Retained
profit
Other Subtotal Preferred
stock
Sustainable
debt
Other
5．Other
comprehensive
income carry-over
retained earnings
6．Other
(V). Special
reserves
1. Provided this year
2．Used this term（VI）Other
395418
0.00
39541
80.00
3954180.
00
IV. Balance at the
end of this term
20908
06126.
00
256652
4645.31
238280420.37
910425
068.90
298928
1402.29
87953
17662.
87
321380537.
12
9116698
199.99
Amount in last year
In RMB
Items
The first half year of 2019
Owner’s equity Attributable to the Parent Company
Minor
shareholders’
equity
Total of
owners’
equity
Share
Capital
Other Equity instrument
Capital
reserves
Less: Shares
in stock
Other
Comprehensive
Income
Specialized
reserve
Surplus
reserves
Common risk
provision
Retained
profit
Other Subtotal
Prefer
red
stock
Sustai
nable
debt
Other
I.Balance at the end of
last year
20908
06126.
00
253677
4965.31
245109114.81
7754025
61.35
3938609
136.59
95867
01904.
06
459599723.8
7
1004630
1627.93
Add: Change of
accounting policy
11064350.29
-1135341
3.48
-28906
3.19
-289063.
19
Correcting of previous
errors
Merger of entities under
common control
Other
II.Balance at the
beginning of current
year
20908
06126.
00
253677
4965.31
256173465.10
7754025
61.35
3927255
723.11
95864
12840.
87
459599723.8
7
1004601
2564.74
III.Changed in the
current year
257955
00.00
18938083.74
-4385469
30.51
-39381
3346.7
7
-116287013.
72
-510100
360.49
（1）Total
comprehensive income
18938083.74
7364861
12.30
755424
196.04
107099691.5
7
8625238
87.61
Items
The first half year of 2019
Owner’s equity Attributable to the Parent Company
Minor
shareholders’
equity
Total of
owners’
equity
Share
Capital
Other Equity instrument
Capital
reserves
Less: Shares
in stock
Other
Comprehensive
Income
Specialized
reserve
Surplus
reserves
Common risk
provision
Retained
profit
Other Subtotal
Prefer
red
stock
Sustai
nable
debt
Other（II）Investment or
decreasing of capital by
owners
1Ordinary Shares invest
ed by shareholders
2Holders of other equity
instruments invested cap
ital
3．Amount of shares paid
and accounted as
owners’ equity
4．Other（III）Profit allotment
-1175033
042.81
-11750
33042.
81
-223386705.
29
-139841
9748.10
1.Providing of surplus
reserves
2.Providing of common
Items
The first half year of 2019
Owner’s equity Attributable to the Parent Company
Minor
shareholders’
equity
Total of
owners’
equity
Share
Capital
Other Equity instrument
Capital
reserves
Less: Shares
in stock
Other
Comprehensive
Income
Specialized
reserve
Surplus
reserves
Common risk
provision
Retained
profit
Other Subtotal
Prefer
red
stock
Sustai
nable
debt
Other
risk provisions
3．Allotment to the
owners (or shareholders)
-1175033
042.81
-11750
33042.
81
-223386705.
29
-139841
9748.10
4．Other
(IV) Internal transferring
of owners’ equity
1. Capitalizing of capital
reserves (or to capital
shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3．Making up losses by
surplus reserves.
4.Change amount of
defined benefit plans
that carry forward
Items
The first half year of 2019
Owner’s equity Attributable to the Parent Company
Minor
shareholders’
equity
Total of
owners’
equity
Share
Capital
Other Equity instrument
Capital
reserves
Less: Shares
in stock
Other
Comprehensive
Income
Specialized
reserve
Surplus
reserves
Common risk
provision
Retained
profit
Other Subtotal
Prefer
red
stock
Sustai
nable
debt
Other
Retained earnings
5．Other comprehensive
income carry-over
retained earnings
6．Other
(V). Special reserves
1. Provided this year
2．Used this term（VI）Other
257955
00.00
25795
500.00
2579550
0.00
IV. Balance at the end of
this term
20908
06126.
00
256257
0465.31
275111548.84
7754025
61.35
3488708
792.60
91925
99494.
10
343312710.1
5
9535912
204.25
Legal Representative: Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Items
The first half year of 2020
Share capital
Other Equity instrument
Capital
reserves
Less:
Shares
in stock
Other
Comprehensiv
e Income
Speciali
zed
reserve
Surplus
reserves
Retained
profit
Other
Total of
owners’
equity
Prefe
rred
stock
Sustain
able
debt
Other
I.Balance at the end of last year 2090806126.00
2974458
696.93
382193344.9
0
894580785
.25
3710584722
.68
1005262
3675.76
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current
year
2090806126.00
2974458
696.93
382193344.9
0
894580785
.25
3710584722
.68
1005262
3675.76
III.Changed in the current year
3954180.
00
-143912924.
53
-569975319.
96
-709934
064.49
（I）Total comprehensive income
-143912924.
53
312344865.2
1
1684319
40.68
(II) Investment or decreasing of capital
by owners
1．Ordinary Shares invested by shareho
lders
2．Holders of other equity instruments i
Items
The first half year of 2020
Share capital
Other Equity instrument
Capital
reserves
Less:
Shares
in stock
Other
Comprehensiv
e Income
Speciali
zed
reserve
Surplus
reserves
Retained
profit
Other
Total of
owners’
equity
Prefe
rred
stock
Sustain
able
debt
Other
nvested capital
3.Amount of shares paid and accounted
as owners’ equity
4．Other（III）Profit allotment
-882320185.
17
-882320
185.17
1.Providing of surplus reserves
2．Allotment to the owners (or
shareholders)
3．Other
-882320185.
17
-882320
185.17
(IV) Internal transferring of owners’
equity
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or to
capital shares)
3．Making up losses by surplus reserves.
4.Change amount of defined benefit
plans that carry forward
Items
The first half year of 2020
Share capital
Other Equity instrument
Capital
reserves
Less:
Shares
in stock
Other
Comprehensiv
e Income
Speciali
zed
reserve
Surplus
reserves
Retained
profit
Other
Total of
owners’
equity
Prefe
rred
stock
Sustain
able
debt
Other
Retained earnings
5．Other comprehensive income
carry-over retained earnings
6．Other
(V) Special reserves
1. Provided this year
2．Used this term（VI）Other
3954180.
00
3954180.
00
IV. Balance at the end of this term 2090806126.00
2978412
876.93
238280420.3
7
894580785
.25
3140609402
.72
9342689
611.27
Amount in last year
In RMB
Items
The first half year of 2019
Share Capital
Other Equity instrument
Capital
reserves
Less:
Share
s in
stock
Other
Comprehensive
Income
Special
ized
reserve
Surplus
reserves
Retained profit Other
Total of
owners’ equity
Preferred
stock
Sust
aina
ble
debt
Other
I.Balance at the end of last year
2090806126
.00
2948663196
.93
245109114.81
759558277
.70
3680165040.86
9724301756.
30
Add: Change of accounting policy 11064350.29 -11353413.48 -289063.19
Correcting of previous errors
Other
II.Balance at the beginning of current
year
2090806126
.00
2948663196
.93
256173465.10
759558277
.70
3668811627.38
9724012693.
11
III.Changed in the current year 25795500.00 18938083.74 -96381524.67 -51647940.93
（I）Total comprehensive income 18938083.74 1078651518.14
1097589601.
88
(II) Investment or decreasing of capital
by owners
1．Ordinary Shares invested by shareho
lders
2．Holders of other equity instruments i
nvested capital
3.Amount of shares paid and accounted
as owners’ equity
Items
The first half year of 2019
Share Capital
Other Equity instrument
Capital
reserves
Less:
Share
s in
stock
Other
Comprehensive
Income
Special
ized
reserve
Surplus
reserves
Retained profit Other
Total of
owners’ equity
Preferred
stock
Sust
aina
ble
debt
Other
4．Other（III）Profit allotment -1175033042.81
-1175033042.
81
1.Providing of surplus reserves
2．Allotment to the owners (or
shareholders)
3．Other -1175033042.81
-1175033042.
81
(IV) Internal transferring of owners’
equity
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or to
capital shares)
3．Making up losses by surplus reserves.
4.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other comprehensive income
Items
The first half year of 2019
Share Capital
Other Equity instrument
Capital
reserves
Less:
Share
s in
stock
Other
Comprehensive
Income
Special
ized
reserve
Surplus
reserves
Retained profit Other
Total of
owners’ equity
Preferred
stock
Sust
aina
ble
debt
Other
carry-over retained earnings
6．Other
(V) Special reserves
1. Provided this year
2．Used this term（VI）Other 25795500.00 25795500.00
IV. Balance at the end of this term
2090806126
.00
2974458696
.93
275111548.84
759558277
.70
3572430102.71
9672364752.
18
Legal Representative: Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
III. Company Profile
1. Basic information of the IPO and share capital of the company
1.The Company was established in February 1993 which was originally named as Guangdong Fokai Expressway
Co. Ltd. On June 30 1993 it was renamed as Guangdong Provincial Expressway Development Co. Ltd. after
reorganization pursuant to the approval of the Office of Joint Examination Group of Experimental Units of Share
Holding System with YLSB (1993)No. 68 document. The share capital structure after reorganization is as follows:
Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang Bridge
Co. and Guangfo Expressway Co. Ltd. as of January 31 1993 confirmed by Guangdong State-owned Asset
Management Dept. i.e.RMB 418.2136 million was converted into 155.025 million shares. Guangdong
Expressway Co. invested cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal persons
invested cash of RMB 286.992 million to subscribe for 89.685 million shares. Staff of the Company invested
RMB 87.008 million to subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.
2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities
Regulatory Commission with YTG (1996) No. 67 document part of the shareholders of non-state-owned legal
person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co. Ltd.in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval
document and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document the
Company issued 135 million domestically listed foreign investment shares (B shares) to overseas investors at the
price of HKD 3.54 (equivalent to RMB 3.8) with the par value of each share being RMB 1 during June to July
1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic of
China with (1996) WJMZYHZ No. 606 document the Company was approved to be a foreign-invested joint
stock company limited.
5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in the following
manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common reserve on
3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and No.
487 document the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term of
“payable in full on application pro-rate placing and subject to refund” with the par value of each share being
RMB 1 in January 1998.
7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant
to the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that of
CSRC with ZJGSZ (2000) No. 98 the Company offered 3 Rights for every 10 shares of 764.256249 million
shares at the price of RMB 11 per Right.73822250 ordinary shares were actually placed to all .
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH
(2000) No. 574 document the state-owned shares were transferred to Guangdong Communication Group Co.
Ltd. (Group Co.) for holding and management without compensation.
9.Pursuant to the approval of Shenzhen Stock Exchange 53.0205 million staff shares of the Company (132722
shares held by directors supervisors and senior executives are temporarily frozen) were listed on February 5
2001.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting the Company capitalized
capital common reserve into 419039249 shares on 5-for-10 basis with the total share capital as of the end of 2000
i.e. 838078499 shares as base. The date of stock right registration was May 21 2001. The ex-right date was May
22 2001.
11 ． On March 8 2004As approved by China Securities Regulatory Commission by document
Zheng-Jian-Gong-Si-Zi [2003]No.3 the 45000000 non-negotiable foreign shares were placed in Shenzhen Stock
12. On December 21 2005 the Company's plan for share holding structure reform was voted through at theshareholders' meeting concerning A shares. On January 26 2006 The Ministry of Commerce of PRC issued “Theapproval on share converting of Guangdong Provincial Expressway Development Co. Ltd.” to approve the shareequity relocation and transformation. On October 9 2006 according to the “Circular about implementing of shareequity relocation and relative trading” issued by Shenzhen Stock Exchange the abbreviation ID of the Company’
s A shares was restored from “G-Expressway” “Expressway A”.
13. Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to
Parties such as Guangdong Provincial Expressway Co. Ltd to Purchase Assets and Raise Matching Funds by
Guangdong Provincial Expressway Development Co. Ltd in June 2016 the company issued 33355263 shares
and paid RMB 803.50 million to Guangdong Provincial Expressway Co. Ltd for purchasing the 25% stake of
Guangdong Provincial Fokai Expressway Co. Ltd held by Guangdong Provincial Expressway Co. Ltd; and
issued 466325020 shares to Guangdong Provincial Highway Construction Co. Ltd for purchasing the 100%
stake of Guangzhou Guangzhu Traffic Investment Management Co. Ltd held by Guangdong Provincial Highway
Construction Co. Ltd. On June 21 2016 the company directionally issued 334008095 A-shares to Yadong
Fuxing Yalian Investment Co.Ltd Tibet Yinyue Investment Management Co.Ltd and GF Securities Co.Ltd.
The issuance of shares have been registered on July 7 2016 the new shares will be listed on July 8 2016.
2. Company's registered place and headquarters address
Company name：Guangdong Provincial Expressway Development Co. Ltd.
Registration placeNo.85 Baiyun Road Yuexiu District Guangzhou.Headquarters Office ：45-46/F Litong Plaza No.32 Zhujiang East Road Zhujiang New City Tihe Disrtict
Guangzhou
3. Business nature and main business activities
Industry and main products of the company: highway management and maintenance.General business items: investment construction charging maintenance and service management of
expressways grade roads and bridges; Automobile rescue service maintenance and cleaning; Parking lot charges;
Design production release and agency of all kinds of advertisements at home and abroad; Land development
along the highway; Warehousing business; Intelligent transportation technology research and development and
service; Equity investment management and consultation. (Projects that must be approved according to law can
be operated only after being approved by relevant departments).The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai Expressway and
Jingzhu Expressway Guangzhu
Section investment in technological industries and provision of relevant consultation while investing in Shenzhen
Huiyan Expressway Co. Ltd. Guangzhou Guanghui Expressway Co. Ltd.Jingzhu Expressway Guangzhu Co. Lt
d.Guangdong Jiangzhong Expressway Co. Ltd. Zhaoqing Yuezhao Expressway Co. Ltd.Ganzhou Kangda Expre
ssway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Technology Micro Loan Co. Ltd.Guangdong
Guangle Expressway Co.Ltd.， Guoyuan Securities Co. Ltd.and Hunan Lianzhi Technology Co. Ltd.
4. Scope and changes of consolidated financial statements in the current period
(1) Scope of current consolidated financial statements
The consolidated scope of the current financial statements invovles Guangdong Expressway Technology
Investment Co. Ltd. Guangzhou Guangzhu Transportation Investment Management Co. Ltd. Yuegao Capital
Investment (Hengqin) Co. Ltd. its holding subsidiaries Guangfo Expressway Co. Ltd. and Jingzhu Expressway
Guangzhu Section Co. Ltd..
(2) Changes in the scope of consolidated financial statements in the current period
None
5. Approval and submission date of financial report
The financial statements have been authorized for issuance by the Board of Directors of the Group on August
25 2020.
IV. Basis for the preparation of financial statements
1.Preparation basis
The financial statements of the Company have been prepared on basis of going concern in conformity with
Chinese Accounting Standards for Business Enterprises and the Accounting Systems for Business Enterprises
issued by the Ministry of Finance of People’s Republic of China (Ministry of Finance issued order No.33 the
Ministry of Finance revised order No.76) on February 15 2006 and revised Accounting Standards (order 42 of
the Ministry of Finance) and Compilation Rules for Information Disclosure by Companies Offering Securities to
the Public No.15 – General Provisions on Financial Reports (2014 Revision) issued by the China Securities
Regulatory Commission (CSRC).
According to the relevant accounting regulations in Chinese Accounting Standards for Business Enterprises
the Company has adopted the accrual basis of accounting. Held-for-sale non-current assets are measured at the
lower of its book value at its classification date and fair value minus expected disposal costs. Where assets are
impaired provisions for asset impairment are made in accordance with relevant requirements
2.Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will cause
material doubts as to the continuation capability of the Company.V. Significant Accounting Policies and Accounting Estimates
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company are recognized and measured in accordance with the regulations in
the Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial
position business result and cash flow of the Company as of June 30 2020 and from January to June 2020. In
addition the financial statements of the Company comply in all material respects with the revised disclosing
requirements for financial statements and the Compilation Rules for Information Disclosure by Companies
Offering Securities to the Public No.15—General Provisions on Financial Reports (2014 Revision) issued by
China Securities Regulatory Commission (CSRC) in 2014.
2. Accounting period
The accounting period of the Company is classified as interim period and annual period. Interim period
refers to the reporting period shorter than a complete annual period. The accounting period of the Company is the
calendar year from January 1 to December 31.
3.Operating cycle
The normal operating cycle refers to the period from the time when the Group purchases assets for processing to
the time when cash or cash equivalents are realized. The Company takes 12 months as a business cycle and uses it
as a criterion for liquidity classification of assets and liabilities.
4.Standard currency for bookkeeping
The Company adopts CNY to prepare its functional statements.
5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same
Control
1.Business Combinations under the Same Control
If business participating in the combination are ultimately controlled by the same party or parties before and
after the combination and the control is not temporary it is an business combination under the same control.Usually business combination under the same control refers to the combination between business within the same
business except which it is generally not regarded as business combination under the same control.The assets and liabilities obtained by the Company as the combining party in the business combination shall
be measured according to the book value of the combined party in the consolidated financial statements of the
ultimate controlling party on the combination date. For the long-term equity investment formed by holding
combination under the same control the company takes the share of the book owner's equity of the combined
party on the combination date as the initial investment cost for forming the long-term equity investment. See the
long-term equity investment for relevant accounting treatment; The assets and liabilities obtained by absorption
and combination under the same control shall be recorded by the Company according to the original book value of
the related assets and liabilities in the combined party. The company adjusts the capital reserve according to the
difference between the book value of the net assets obtained and the book value of the combination consideration
paid (or the total par value of the issued shares); If the capital reserve is insufficient to offset the retained earnings
shall be adjusted.
All directly related expenses incurred by the Company as a combining party for business combination
including audit fees evaluation fees legal service fees etc. are included in the current profits and losses when
incurred.
Fees and commissions paid for bonds issued by enterprises or other debts shall be included in the initial
measurement amount of bonds and other debts issued. Fees commissions and other expenses incurred in issuing
equity securities in business combination shall be offset against the premium income of equity securities and if
the premium income is insufficient to offset the retained earnings shall be offset.If the holding under the same control is combined to form a parent-subsidiary relationship the parent
company shall prepare consolidated financial statements on the consolidation date including consolidated balance
sheet consolidated income statement and consolidated cash flow statement.
For the consolidated balance sheet the book value of the combined party in the consolidated financial
statements of the ultimate controlling party shall be incorporated into the consolidated financial statements and
the transactions between the combining party and the combined party on the consolidation date and the previous
period shall be regarded as internal transactions and offset according to the relevant principles of "Consolidated
Financial Statements"; The consolidated income statement and cash flow statement include the net profit and cash
flow realized by the combining party and the combined party from the beginning of the current consolidation
period to the consolidation date and involve the cash flow generated by the transactions and internal transactions
between the two parties in the current period which shall be offset according to the relevant principles of the
consolidated financial statements.
2. If the parties involved in the combination are not ultimately controlled by the same party or parties before
and after the combination it is a business combination not under the same control.
Business Combinations not under the Same Control
Determine the cost of business combination: the cost of business combination includes the fair value of cash
or non-cash assets paid by the purchaser for business combination debts issued or assumed and equity securities
issued on the purchase date.In the business combination not under the same control the intermediary expenses such as auditing legal
services evaluation and consultation and other related management expenses incurred by the purchaser for the
business combination shall be included in the current profits and losses when they occur; Transaction costs of
equity securities or debt securities issued by the purchaser as combination consideration shall be included in the
initial recognized amount of equity securities or debt securities.
For the long-term equity investment obtained by holding combination not under the same control the
company takes the combination cost determined on the purchase date (excluding cash dividends and profits that
should be collected from the investee) as the initial investment cost for the long-term equity investment of the
purchaser; All identifiable assets and liabilities obtained by absorption and combination under different control
that meet the recognition conditions shall be recognized as assets and liabilities of the enterprise at fair value on
the date of purchase. If the Company takes non-monetary assets as consideration to obtain the control right of the
purchaser or various identifiable assets and liabilities the difference between the fair value of the relevant
non-monetary assets on the purchase date and their book value shall be taken as the disposal profit and loss of the
assets and recorded in the income statement of the current consolidation period.In a business combination not under the same control the difference between the cost of business
combination and the fair value share of identifiable net assets of the purchaser obtained in the combination is
recognized as goodwill; In the case of absorption and combination the difference is recognized as goodwill in the
individual financial statements of the parent company; In the case of holding combination the difference is listed
as goodwill in the consolidated financial statements.The cost of business combination is less than the difference between the fair value share of identifiable net
assets acquired during the combination which is included in the profits and losses (non-operating income) of the
current combination period after review by the Company. In the case of absorption and combination the
difference is included in the individual income statement of the parent company in the current combination period;
In the case of holding combination the difference is included in the consolidated income statement of the current
combination period.If the business combination not under the same control realized step by step through multiple exchange
transactions is a package transaction each transaction will be treated as a transaction to obtain control rights; If it
is not a package transaction the equity of the purchased party held before the purchase date shall be re-measured
according to the fair value of the equity on the purchase date and the difference between the fair value and its
book value shall be included in the current investment income; If the equity of the purchased party held before the
purchase date involves other comprehensive income other comprehensive income related to it shall be converted
into the investment income of the current period on the purchase date except for other comprehensive income
arising from the re-measurement of net liabilities or changes in net assets of the defined benefit plans by the
invested party.
6. Compilation method of consolidated financial statements
(1) Consolidation scope
The consolidation scope of consolidated financial statements is determined on the basis of control. Control
means that the Company has the power over the investee is entitled to variable returns by participating in the
related activities of the investee and has the ability to use the power over the investee to influence its return
amount. Subsidiaries refer to subjects controlled by the Company (including enterprises divisible parts of
investee(s) structured subjects etc.).
(2) Compilation method of consolidated financial statements
The consolidated financial statements of the Company are based on the financial statements of the parent
company and its subsidiaries and are prepared according to other relevant information. When compiling the
important internal transactions between the parent company and its subsidiaries such as investment transactions
purchase and sale of inventories and their unrealized profits are offset and combined item by item and the
minority shareholders' rights and interests and the current income of minority shareholders are calculated. If the
accounting policies and accounting periods of subsidiaries are inconsistent with those of the parent company the
accounting statements of subsidiaries shall be adjusted according to the accounting policies and accounting
periods of the parent company before combination.
(3) Increase and decrease the consolidated report processing of subsidiaries during the reporting period
During the reporting period when preparing the consolidated balance sheet the balance at the beginning of
the consolidated balance sheet is adjusted for the subsidiaries added due to business combination under the same
control. When preparing the consolidated balance sheet the balance at the beginning of the year of the
consolidated balance sheet is not adjusted for the subsidiaries added due to business combination not under the
same control. During the reporting period the subsidiaries are disposed of and the balance at the beginning of the
consolidated balance sheet is not adjusted when the consolidated balance sheet is prepared.
During the reporting period the income expenses and profits of subsidiaries added by business combination
under the same control from the beginning to the end of the reporting period are included in the consolidated
income statement and the cash flows from the beginning to the end of the reporting period are included in the
consolidated cash flow statement. For subsidiaries added due to business combination not under the same control
the income expenses and profits of such subsidiaries from the purchase date to the end of the reporting period are
included in the consolidated income statement and their cash flow from the purchase date to the end of the
reporting period is included in the consolidated cash flow statement. During the reporting period the subsidiary is
disposed of and the income expenses and profits from the beginning of the period to the disposal date are
included in the consolidated income statement and the cash flow from the beginning of the period to the disposal
date is included in the consolidated cash flow statement.When the control right of the original subsidiary is lost due to the disposal of part of the equity investment or
other reasons the remaining equity investment after disposal shall be re-measured according to its fair value on
the date of loss of control right. The sum of the consideration obtained from the disposal of equity and the fair
value of the remaining equity minus the difference between the share of the original subsidiary's net assets
calculated continuously from the purchase date and the sum of goodwill calculated according to the original
shareholding ratio is included in the investment income in the current period when the control right is lost. Other
comprehensive income related to the original subsidiary's equity investment is converted into current investment
income when the control right is lost except for other comprehensive income generated by the investee's
re-measurement of net liabilities or changes in net assets of the set income plan.The difference between the newly acquired long-term equity investment due to the purchase of minority
shares and the identifiable net assets share of subsidiaries calculated according to the increased shareholding ratio
and the difference between the disposal price obtained from partial disposal of equity investment in subsidiaries
and the net assets share of subsidiaries corresponding to the disposal of long-term equity investment are used to
adjust the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the
capital reserve is insufficient to offset the retained earnings will be adjusted.
(4) Processing of consolidated statements from step-by-step disposal of equity to loss of control rights
If the transactions that dispose of the equity investment in subsidiaries until the loss of control rights are of a
package transaction the transactions shall be treated as transactions that dispose of subsidiaries and lose control
rights; However the difference between the disposal price and the share of the subsidiary's net assets related to the
disposal investment before the loss of control right is recognized as other comprehensive income in the
consolidated financial statements which will be transferred to the current profit and loss when the control right is
lost except for other comprehensive income arising from the re-measurement of the net liabilities or changes in
net assets of the set income plan by the investee. If it is not a package transaction before the loss of control the
difference between the disposal price and the corresponding net assets continuously calculated by the subsidiary
from the purchase date will be adjusted to the capital reserve and if the capital reserve is insufficient to offset the
retained earnings will be adjusted; In case of loss of control right the accounting treatment shall be carried out
according to the above accounting policy when the control right over the original subsidiary is lost.
7.Joint venture arrangements classification and Co-operation accounting treatment
A joint arrangement is an arrangement of which two or more parties have joint control. A joint arrangement
is either a joint operation or a joint venture depending on the rights and obligation of the Company in the joint
arrangement. A joint operation is a joint arrangement whereby the Company has rights to the assets and
obligations for the liabilities relating to the arrangement. A joint venture is a joint arrangement whereby the
Company has rights to the net assets of the arrangement.
(1) Identification of joint venture arrangement
As long as two or more participants exercise joint control over an arrangement such arrangement can be
regarded as a joint venture arrangement and all participants are not required to be entitled to joint control over the
arrangement.
(2) Reassessment
If the legal form contract terms and other relevant facts and circumstances change the participants in the
joint venture arrangement shall reassess the joint venture arrangement: First assess whether the original joint
venture party still has joint control over the arrangement; Second assess whether the type of joint venture
arrangement has changed.
(3) Accounting treatment of participants in joint operation
① Accounting treatment of the joint venture in joint operation
A. General accounting principles
The joint venture shall recognize the following items related to its share of interests in the joint operation and
carry out accounting treatment in accordance with the relevant accounting standards for enterprises: Firstly
recognize the assets held separately and recognize the assets held jointly according to their share; Secondly
recognize the liabilities undertaken separately and recognize the liabilities jointly undertaken according to their
share; Thirdly recognize the income generated from the sale of its share of joint operating output; Fourthly
recognize the income generated by the joint operation due to the sale of output according to its share; Fifthly
recognize the expenses incurred separately and recognize the expenses incurred in joint operation according to its
share.The joint venture may use its own assets for joint operations. If the joint venture retains all ownership or
control over these assets the accounting treatment of these assets is no different from the accounting treatment of
the joint venture's own assets.The joint venture may also purchase assets together with other joint ventures to invest in joint operations and
jointly bear the liabilities of joint operations. In this case the joint venture shall recognize the interest share in
these assets and liabilities in accordance with the relevant provisions of the Accounting Standards for Business
Enterprises. For example according to the Accounting Standards for Business Enterprises No.4-Fixed Assets the
interest share in related fixed assets is recognized and the share in related financial assets and financial liabilities
is recognized according to the financial instrument recognition and measurement standards.When the joint operation is achieved through a separate entity the joint venture shall recognize the liabilities
undertaken separately according to the above principles and recognize the liabilities jointly undertaken according
to the share of the enterprise. However if the joint venture is jointly and severally liable in accordance with the
relevant laws of China or the relevant contractual stipulations due to the failure of other shareholders to provide
funds to the joint venture arrangement as agreed its accounting treatment shall be subject to the Accounting
Standards for Business Enterprises No.13-Contingencies.
B. Accounting treatment for the joint venture to invest or sell assets that do not constitute business.
When the joint venture invests or sells assets for joint operation (except that the assets constitute business)
before the joint operation sells the related assets to a third party or the related assets are consumed (i.e. the
unrealized internal profits are still included in the book value of the assets held by the joint venture) only the
gains or losses attributable to other participants in the joint venture shall be recognized. If the transaction shows
that the assets invested or sold meet the asset impairment losses specified in Accounting Standards for Business
Enterprises No.8-Asset Impairment (hereinafter referred to as "Asset Impairment Loss Standards") the joint
venture shall fully recognize the losses.
C. Accounting treatment of assets purchased by the joint venture from joint operation that do not constitute
business
Before the joint venture buys assets from joint operation (except that the assets constitute business) and sells
the assets to a third party (i.e. when unrealized internal profits are still included in the book value of assets held
by the joint venture) the share of profits and losses arising from the transaction that the joint venture is entitled to
shall not be recognized. That is at this time only the part of the profit and loss arising from the transaction that
belongs to other participants in the joint operation shall be recognized.
D. Accounting treatment of the joint venture's share of the interests of the joint operation that constitutes the
business
When the joint venture obtains the share of interests in the joint operation and the joint operation constitutes
business the corresponding accounting treatment shall be carried out in accordance with the relevant standards
such as business combination standards however the provisions of other relevant standards cannot conflict with
the provisions of the joint venture arrangement standards. The enterprise shall judge whether the joint operation
constitutes a business in accordance with the relevant provisions of the business combination standards. This
treatment principle is not only applicable to the acquisition of the share of interests in the existing joint operation
that constitutes business but also to the establishment of joint operation with other participants and because other
participants introduce the existing business the joint operation constitutes business when it is established.
② Accounting principles for participants who do not enjoy joint control over joint operations
Participants (non-joint ventures) who are not entitled to joint control of the joint operation shall be treated as
the joint ventures if they are entitled to the assets related to the joint operation and bear the liabilities related to the
joint operation. That is the participants in the joint operation regardless of whether they are entitled to joint
control or not will be subject to the same accounting treatment as the joint ventures as long as they are entitled to
the right to jointly operate related assets and undertake the liabilities obligation related to joint operation.Otherwise its profit share shall be accounted for in accordance with the relevant accounting standards for
enterprises.（(4) Accounting treatment of participants in a joint ventureIn a joint venture the participants shall account for their investment in the joint venture in accordance with
the Accounting Standards for Business Enterprises No.2-Long-term Equity Investment.Participants (non-parties) who are not entitled to joint control over the joint venture shall carry out relevant
accounting treatment according to their influence on the joint venture: if they have significant influence on the
joint venture their investment in the joint venture shall be accounted for in accordance with the provisions of the
long-term equity investment standards; If it has no significant impact on the joint venture its investment in the
joint venture shall be accounted for in accordance with the provisions of the Standards for Recognition and
Measurement of Financial Instruments.
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand ready usable deposits and investments
having short holding term (normally will be due within three months from the day of purchase) with strong
liquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of
change.
9.Foreign Currency Transaction
(1) Foreign currency business
Foreign currency transactions of the Company are converted into the amount of bookkeeping base currency
according to the spot rate on the transaction date.On the balance sheet date foreign currency monetary items and foreign currency non-monetary items shall
be treated according to the following provisions: foreign currency monetary items shall be converted at the spot
rate on the balance sheet date. Exchange differences arising from the difference between the spot rate on the
balance sheet date and the spot rate at the time of initial recognition or the previous balance sheet date are
included in the current profits and losses; Foreign currency non-monetary items measured at historical cost are
still converted at the spot rate on the transaction date without changing their bookkeeping base currency amount;
Foreign currency non-monetary items measured at fair value shall be converted at the spot rate on the fair value
determination date and the difference between the converted bookkeeping base currency amount and the original
bookkeeping base currency amount shall be treated as changes in fair value (including exchange rate changes) and
included in the current profits and losses; During the capitalization period the exchange difference between the
principal and interest of foreign currency special loans is capitalized and included in the cost of assets that meet
the capitalization conditions.
(2) Translation of foreign currency financial statements
When converting foreign currency financial statements the Company shall comply with the following
regulations: assets and liabilities in the balance sheet shall be converted at the spot rate on the balance sheet date
and other items of owner's equity except "undistributed profits" shall be converted at the spot rate at the time of
occurrence; The income and expense items in the income statement shall be converted at the spot rate on the
transaction date (or at the exchange rate determined by a systematic and reasonable method and similar to the spot
rate on the transaction date). The translation difference of foreign currency financial statements generated
according to the above translation is recognized as other comprehensive income. The conversion of comparative
financial statements shall be handled according to the above provisions.
10.Financial instruments
The Company recognizes the financial assets or liabilities when involved in financial instruments’
agreements.
（1）Classification recognition and measurement of financial assets
In accordance with the characteristics of business model for managing financial assets and the contractual
cash flow of financial assets the Company classifies financial assets into: financial assets measured in amortized
cost; financial assets measured at fair value and their's changes are included in other comprehensive income;
financial assets measured at fair value and their's changes are included in current profits and losses.The initial measurement of financial assets is calculated by using fair value. For financial assets measured at
fair value whose changes are included in current profits and losses relevant transaction costs are directly included
in current profits and losses; For other types of financial assets relevant transaction costs are included in the
initial recognition amount.
①Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimed
at collecting the contractual cash flow and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements that is the cash flow generated on a specific date is only the
payment of principal and interest based on the amount of outstanding principal. For such financial assets the
Company adopts the method of real interest rate and makes subsequent measurement according to the cost of
amortization. The profits or losses resulting from amortization or impairment are included in current profits and
losses.
②Financial assets measured at fair value and changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect the contractual cash flow
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures such financial assets at fair value and their changes are included in other
comprehensive gains but impairment losses or gains exchange gains and losses and interest income calculated
according to the actual interest rate method are included in current profits and losses.In addition the Company designated some non-trading equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive income. The Company includes the relevant
dividend income of such financial assets in current profits and losses and the changes in fair value in other
comprehensive gains. When the financial asset ceases to be recognized the accumulated gains or losses
previously included in other comprehensive gains shall be transferred into retained income from other
comprehensive income and not be included in current profit and loss.
③Financial assets measured at fair value and changes included in current profits and losses
The Company includes the above-mentioned financial assets measured at amortized cost and those measured
at fair value and their's changes in financial assets other than financial assets of comprehensive income and
classifies them as financial assets measured at fair value and their's changes that are included in current profits and
losses. In addition the Company designates some financial assets as financial assets measured at fair value and
includes their changes in current profits and losses in order to eliminate or significantly reduce accounting
mismatches during initial recognition. In regard with such financial assets the Company adopts fair value for
subsequent measurement and includes changes in fair value into current profits and losses.
（2）Classification recognition and measurement of financial liabilities
The Group’s financial liabilities are on initial recognition classified into financial liabilities at fair value
through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss
relevant transaction costs are immediately recognized in profit or loss for the current period and transaction costs
relating to other financial liabilities are included in the initial recognition amounts.
1 Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial
recognition to be measured by the fair value follows the same criteria as the classification by which financial
assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to fair value. Except for hedging accounting changes in fair value are included in current
profits and losses.
Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are
included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in
fair value caused by changes in the Company's own credit risk and when the liabilities are terminated the
changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the
cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The
amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and
losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial
liabilities will result in or expand the accounting mismatch in the profits and losses the Company shall include all
the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit
risk of the enterprise itself) into the current profits and losses.② Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition
or formed by its continuous involvement in the transferred financial asset financial liabilities and financial
guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost
measured at the amortized cost for subsequent measurement recognition has been stopped or amortization of the
profit or loss is included in the current profits and losses.
(3) Recognition basis and measurement methods for transfer of financial assets
Financial assets satisfying one of the following conditions shall be terminated and recognized: ①The
contractual right to collect the cash flow of the financial asset is terminated; ②The financial asset has been
transferred and almost all the risks and rewards in the ownership of the financial asset have been transferred to
the transferee; ③The financial asset has been transferred although the enterprise neither transfers nor retains
almost all the risks and rewards in the ownership of the financial asset but it abandoned control of the financial
assets.In case that the enterprise does not transfer or retain almost all risks and rewards on financial assets
ownership nor waive to control these assets relevant financial assets shall be recognized in accordance with the
degree for continued involvement of financial assets transferred and relevant liabilities shall be recognized
correspondingly. west bank The term "continuous involvement in the transferred financial asset" shall refer to the
risk level that the enterprise faces resulting from the change of the value of the financial asset.If the overall transfer of the financial assets satisfies the derecognition criteria the difference between the
book value of the transferred financial assets and the sum of the consideration received from transfer and
cumulative change in fair value previously recognized in other comprehensive income is accounted into the
current profit or loss.In case that the partial transfer of financial assets meets de-recognition conditions the book value of
financial assets transferred shall be allocated as per respective fair value between de-recognized or not
de-recognized parts and the difference between the sum of the consideration received due to transfer with the
accumulated amount of fair value changes that is previously included in other comprehensive income and shall be
allocated to de-recognized parts and the aforesaid book amount allocated shall be included in the current profit or
loss.The Company shall determine whether almost all the risks and rewards of the ownership of the financial
assets sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. If
almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee the
confirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of the
financial asset have been retained the confirmation of the financial asset shall not be terminated; if neither the
transfer nor the retention of almost all the risks and rewards in the ownership of the financial asset has been made.In case of remuneration it shall continue to determine whether the enterprise has retained control over the assets
and conduct accounting treatment in accordance with the principles described in the preceding paragraphs.
(4) Termination confirmation of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged the Company shall
terminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an
agreement with the lender to replace the original financial liabilities by assuming new financial liabilities and the
contract terms of the new financial liabilities are substantially different from those of the original financial
liabilities it shall terminate the recognition of the original financial liabilities and at the same time confirm a new
financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or
part thereof) it shall terminate the confirmation of the original financial liabilities and at the same time confirm a
new financial liabilities in accordance with the revised terms.If the financial liabilities (or part thereof) are terminated the difference between their book value and the
consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits
and losses of the current period.
（5）Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets
and financial liabilities and intends either to settle on a net basis or to realize the financial asset and settle the
financial liability simultaneously a financial asset and a financial liability shall be offset and the net amount is
presented in the balance sheet. Except for the above circumstances financial assets and financial liabilities shall
be presented separately in the balance sheet and shall not be offset.
(6) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date. The fair value of financial instruments existing in an active
market is determined by the Company according to its quoted price in this market. westbank The quoted prices in
the active market refer to the prices which are easily available from the stock exchanges brokers industry
associations pricing service institutions and etc. at a fixed term and which represent the prices at which actually
occurred market transactions are made under fair conditions.￡? In can a financial instrument does not exist in
active markets its fair value shall be determined by the Company with assessment techniques. The value appraisal
techniques mainly include the prices adopted by the parties who are familiar with the condition in the latest
market transaction upon their own free will the current fair value obtained by referring to other financial
instruments of the same essential nature the cash flow capitalization method and the option pricing model etc. In
valuation the Company adopts valuation techniques that are applicable in the current situation and supported by
sufficient data and other information to select input values consistent with the characteristics of assets or liabilities
considered by market participants in the transactions of related assets or liabilities and give priority to the use of
relevant observable input values as far as possible. Unallowable values are used if the relevant observable input
values are not available or are not practicable.
（7）Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. The consideration received from issuing equity instruments net of transaction costs
are added to shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to
holders of equity instruments are deducted from shareholders’ equity.The dividends (including "interest" generated by the tools classified as equity instruments) distributed by the
Company's equity instruments during the period of their existence shall be treated as profit distribution.
11. Impairment of financial instruments
The Company requires to confirm that the financial assets lost by impairment are financial assets measured
by amortized cost investment in debt instruments and lease receivables which are measured at fair value and
whose changes are included in other comprehensive gains mainly including notes receivable accounts receivable
other receivables creditor's rights investment other creditor's rights investment and long-term receivables and etc.In addition provision for impairment and confirmation of credit impairment losses are also made for contract
assets and some financial guarantee contracts in accordance with the accounting policies described in this section.
(1) Method of confirming impairment provision
Based on anticipated credit loss the Company calculates impairment preparation and confirms credit
impairment loss according to the applicable anticipated credit loss measurement method (general method or
simplified method).
Credit loss refers to the difference between the cash flow of all contracts discounted according to the original
real interest rate and the expected cash flow of all contracts receivable according to the contract that is the
present value of all cash shortages. Among them the Company discounts the financial assets purchased or
originated with credit impairment at the actual interest rate adjusted by credit.The general method of measuring anticipated credit loss is whether the credit risk of the Company's
financial assets (including other applicable items such as contract assets similarly hereinafter) has increased
significantly since the initial recognition on each balance sheet day. If the credit risk has increased significantly
since the initial recognition the Company shall measure the loss preparation according to the amount equivalent
to the expected credit loss in the whole duration. If the credit risk has not increased significantly since the initial
recognition the Company shall measure the loss preparation according to the amount equivalent to the expected
credit loss in the next 12 months. The Company shall consider all reasonable and evidenced information
including forward-looking information when evaluating expected credit losses.
Assuming that their credit risk has not increased significantly since the initial recognition the Company may
choose to measure the loss reserve according to the expected credit loss in the next 12 months for financial
instruments with low credit risk on the balance sheet date.
(2) Criteria for judging whether credit risk has increased significantly since the initial recognition
If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly
higher than the probability of default during the estimated duration of the initial recognition the credit risk of the
financial asset is significantly increased. Except for special circumstances the Company uses the change of
default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to
determine whether the credit risk has increased significantly since the initial recognition.
(3) A portfolio-based approach to assessing expected credit risk
The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk such as
the related party's receivables the receivables in dispute with the other party or involving litigation and arbitration
and receivables that has been proved that the debtor may not be able to fulfill the obligation of repayment etc.In addition to the financial assets that assess credit risk individually the Company shall divide financial
assets into different groups based on common risk characteristics and assess credit risk on the basis of portfolio.
(4) Accounting treatment of impairment of financial assets
At the end of the duration the Company shall calculate the anticipated credit losses of various financial
assets. If the anticipated credit losses are greater than the book value of its current impairment provision the
difference is deemed as impairment loss. If the balance is less than the book value of the current impairment
provision the difference is deemed as impairment profit.
(5) Method of determining credit losses of various financial assets
①Receivable Account and Contract assets
In regard to receivables without significant financing components the Company shall measure loss
preparation according to the amount of anticipated credit loss equivalent to the entire duration.In regard to accounts receivable with significant financing components the Company shall choose to
measure loss preparation according to the amount equivalent to the expected credit loss within the duration all the
time.In addition to the accounts receivable that assesses the credit risk individually receivables are divided into
different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1：Aging protfolio This portfolio is characterized by the aging of receivables as a credit
risk.Portfolio 2 ： Quality Guarantee
portfolio
This portfolio is the contract quality guarantee fund and other funds
For the above portfolio 1 the measurement method of bad debts reserve is the aging analysis method
specifically as follows：
Aging Proportion （%）
Within 1 year（Including 1 year） 0
1-2 years 10
2-3 years 30
3-4 years 50
4-5 years 90
Over 5 years 100
For the guarantee fund portfolio of portfolio 2 no provision for bad debts shall be made unless there is
objective evidence that the money cannot be recovered according to the original terms of accounts receivable and
contract assets.②Other receivable
The Company has measured the impairment loss based on the amount of expected credit losses in the next
12 months or the entire duration based on whether the credit risk of other receivables has increased significantly
since the initial recognition. In addition to the other accounts receivable which assesses the credit risk individually
they are divided into different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1 This portfolio is a collection of various deposits advances pledges and other
receivables in daily activities.Protfolio 2 This portfolio is a reserve fund borrowed by employees in their daily business
activities.Protfolio 3 Other receivables other than the above portfolio.
Combination of deposit quality assurance fund and deposit and reserve fund combination except for
objective evidence that the Group will not be able to recover the amount according to the original terms of
receivables will not normally be accrued for bad debt reserves. The measurement method of bad debt reserves for
other combinations is aging analysis and the accrual proportion is the same as accounts receivable.
③ Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost etc. The
Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months
or the entire duration based on whether the credit risk has increased significantly since the initial recognition. The
Company adopts the method of evaluating credit risk with individual assets for creditor's rights investment.
12.Inventory
1.Investories class:
The company’s stocks can be classified as: raw materials etc.
2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the
weighted averages method or the first-in first-out method.
(3) Measurement of ending inventory
On the balance sheet date inventory shall be measured at the lower of cost and net realizable value. If the
cost of inventory is higher than its net realizable value provision for inventory depreciation shall be accrued and
recorded into the current profits and losses.If the difference between the cost calculated by a single inventory item and its net realizable value is higher
the inventory depreciation reserve shall be accrued and recorded into the current profits and losses. Net realizable
value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred
upon completion estimated sales expenses and related taxes and fees.
4. Physical inventories are managed by the perpetual inventory taking system.
13.Contract assets
The Company lists the customer's unpaid contract consideration for which the Company has fulfilled its
performance obligations according to the contract and which is not the right to collect money from customers
unconditionally (that is only depending on the passage of time) as a contract asset in the balance sheet. Contract
assets and liabilities under the same contract are listed in net amount while contract assets and liabilities under
different contracts are not offset.See Note III. 11 Impairment of Financial Instruments for the determination method and accounting treatment
method of expected credit loss of contract assets.
14. Long-term equity investments
(1) Initial measurement
The Company makes initial measurement of long-term equity investment in the following two situations:
① The initial investment cost of long-term equity investment formed by business combination shall be
determined in accordance with the following provisions:
A. In a business combination under the same control if the combining party pays cash transfers non-cash
assets or assumes debts as the combination consideration the share of the book value of the owner's equity of the
merged party in the consolidated financial statements of the final controlling party shall be taken as the initial
investment cost of long-term equity investment on the combination date. The difference between the initial
investment cost of long-term equity investment and the cash paid the transferred non-cash assets and the book
value of the debts undertaken is adopted to adjust the capital reserve; If the capital reserve is insufficient to offset
the retained earnings shall be adjusted. All directly related expenses incurred for business combination including
audit fees evaluation fees legal service fees etc. are included in the current profits and losses when they occur.
B. In the business combination not under the same control the Company determines the combination cost by
distinguishing the following situations:
a) For business combination realized by one exchange transaction the cost of combination is the fair value of
assets paid liabilities incurred or assumed in order to gain control over the purchased party on the purchase date;
b) For business combination realized step by step through multiple exchange transactions the sum of the
book value of the equity investment of the purchased party held before the purchase date and the new investment
cost on the purchase date shall be taken as the initial investment cost of the investment;
c) Intermediary expenses such as auditing legal services evaluation and consultation and other related
management expenses incurred for business combination are included in the current profits and losses when they
occur;
d) If future events that may affect the combination cost are agreed in the combination contract or agreement
if it is estimated that the future events are likely to occur on the purchase date and the amount of impact on the
combination cost can be reliably measured they will be included in the combination cost.
② Except for the long-term equity investment formed by business combination the initial investment cost
of long-term equity investment obtained by other means shall be determined in accordance with the following
provisions:
A. For the long-term equity investment obtained by cash payment the actual purchase price shall be taken as
the initial investment cost. Initial investment cost includes expenses taxes and other necessary expenditures
directly related to obtaining long-term equity investment.
B. For long-term equity investment obtained through exchange of non-monetary assets the initial investment
cost shall be determined according to Accounting Standards for Business Enterprises No.7-Exchange of
Non-monetary Assets.
C. For long-term equity investment obtained through debt restructuring the initial investment cost shall be
determined according to Accounting Standards for Business Enterprises No.12-Debt Restructuring.③ No matter how the long-term equity investment is obtained when the investment is obtained the cash
dividends or profits included in the paid consideration that have been declared but not yet issued by the investee
are separately accounted as receivable items which does not constitute the initial investment cost of obtaining the
long-term equity investment.
(2) Subsequent measurement
Long-term equity investment that can be controlled by the investee shall be accounted by the cost method in
individual financial statements. Long-term equity investments that have joint control or significant influence on
the investee shall be accounted by equity method.① Long-term equity investment accounted by cost method is priced according to the initial investment cost。
Adjust the cost of long-term equity investment by adding or recovering investment. Cash dividends or profits
declared and distributed by the investee shall be recognized as current investment income.If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee the initial investment cost of long-term equity investment
shall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value share
of the identifiable net assets of the investee at the time of investment the difference shall be included in the
current profits and losses and the cost of long-term equity investment shall be adjusted at the same time.
After obtaining the long-term equity investment the investment income and other comprehensive income
shall be recognized respectively according to the share of the net profit and loss and other comprehensive income
realized by the invested unit and the book value of the long-term equity investment shall be adjusted at the same
time; According to the profit or cash dividend declared and distributed by the investee the book value of
long-term equity investment shall be reduced accordingly; The book value of the long-term equity investment is
adjusted and included in the owner's equity for other changes in the owner's equity of the investee except net
profit and loss other comprehensive income and profit distribution. When recognizing the share of the net profit
and loss of the investee the net profit of the investee is recognized after adjustment based on the fair value of the
identifiable net assets of the investee at the time of obtaining the investment. If the accounting policies and
accounting periods adopted by the investee are inconsistent with those of the Company the financial statements of
the investee shall be adjusted according to the accounting policies and accounting periods of the Company and
the investment income and other comprehensive income shall be recognized accordingly. The net loss incurred by
the investee is recognized to be written down to zero by the book value of long-term equity investment and other
long-term interests that substantially constitute the net investment of the investee unless the Company is obligated
to bear additional losses. If the investee achieves net profit in the future the Company will resume the recognition
of the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharing
amount.When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee the
unrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculated
according to the proportion that should be enjoyed and the part attributable to the Company shall be offset and
the investment income shall be recognized on this basis. Unrealized internal transaction losses between the
Company and the investee are asset impairment losses which shall be fully recognized.
Part of the company's equity investment in affiliated enterprises is indirectly held through venture capital
institutions mutual funds trust companies or similar entities including investment-linked insurance funds.Regardless of whether the above entities have a significant impact on this part of investment the Company
chooses to measure this part of indirect investment at fair value and its change is included in profit or loss in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments and the rest is accounted for by equity method.③ When the Company disposes of long-term equity investment the difference between its book value and
the actual purchase price shall be included in the current profits and losses. For long-term equity investment
accounted by equity method when disposing of the investment it adopts the same basis as the investee's direct
disposal of related assets or liabilities and accounts for the part originally included in other comprehensive
income according to the corresponding proportion.
(3) Basis to determine joint control over and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with the relevant agreement and
the relevant activities of such arrangement must be unanimously agreed by the participants who share the control
rights before making decisions. Significant influence means that the investor has the right to participate in the
decision-making on the financial and operating policies of the investee but cannot control or jointly control the
formulation of these policies with other parties. When determining whether the investee can be controlled or exert
significant influence the potential voting rights factors such as current convertible bonds and current executable
warrants of the investee held by the Company and other parties shall be considered at the same time.
15.Investment Property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property is held to earn rentals or for capital appreciation or for both. Investment property
includes leased or ready to transfer after capital appreciation land use rights and leased buildings.
（1）The measurement mode of investment property
①Depreciation or amortization method
The estimated service life net salvage value rate and annual depreciation (amortization) rate of investment
real estate are listed as follows:
Type Estimated service life
(years)
Estimated net salvage
value rate
Annual depreciation
(amortization) rate
Land use right Remaining useful life
Houses and buildings 20-30 years 3%-10% 3%-4.85%
② Impairment test method and accounting treatment method
See "30. Asset Impairment" for details of impairment test methods and impairment provision accrual
methods of investment real estate.
(2) Conversion of investment real estate
The Company has conclusive evidence that the use of real estate has changed. When converting investment
real estate into self-use real estate or inventory the fair value on the day of conversion is taken as the book value
of self-use real estate and the difference between fair value and original book value is included in current profits
and losses. When self-use real estate or inventory is converted into investment real estate measured by fair value
model the investment real estate is priced according to the fair value on the conversion day. If the fair value on
the conversion day is less than the original book value the difference is included in the current profits and losses;
If the fair value on the conversion date is greater than the original book value the difference shall be included in
other comprehensive income.
16.Fixed assets
（1）Confirmation conditions
The Company's fixed assets refer to tangible assets held for the production of commodities provision of
labor services leasing or operation management which have a service life of more than one year and whose
economic benefits are likely to be included into the Company and whose costs can be reliably measured.The Company's fixed assets include roads and bridges houses and buildings machinery and equipment
electronic equipment transportation tools and other equipment.
（2）Depreciation method
Type
Depreciation
method
Expected useful
life(Year)
Residual rate（%）
Annual depreciation
rate(%)
Guangfo Expressway Working flow basis 28 years 0%
Fokai Expressway-Xiebian to
Sanbao Section
Working flow basis 40 years 0%
Fokai Expressway-Sanbao to
Shuikou Section
Working flow basis 30 years 0%
Jingzhu Expressway Guangzhu
Section
Working flow basis 30 years 0%
House Building The straight-line
method
20-30 years 3%-10% 3%-4.85%
Machine Equipment
The straight-line
method
10 years 3%-10% 9%-9.7%
Electric Equipment
The straight-line
method
5-15 years 3%-10% 6%-19.4%
Transportation Equipment
The straight-line
method
5-8 years 3%-10% 11.25%-19.4%
Other
The straight-line
method
5-15 years 3%-10% 6%-19.4%
Except for the fixed assets that have been fully depreciated and continue to be used the depreciation of fixed
assets is classified and accrued by the life average method and workload method and the depreciation rate is
determined according to the category of fixed assets estimated service life and estimated net salvage value rate.
For the fixed assets formed by special reserve expenditure the special reserve shall be offset according to the
cost to form the fixed assets and the accumulated depreciation of the same amount shall be recognized. The fixed
assets will not be depreciated in future periods.
According to the nature and usage of fixed assets the Company determines the service life and estimated net
salvage value of fixed assets. At the end of the year the service life estimated net salvage value and depreciation
method of fixed assets shall be rechecked and if there is any difference with the original estimate corresponding
adjustments shall be made.
(3) Identification basis valuation and depreciation method of fixed assets leased by financing
When the leased fixed assets have substantially transferred all risks and rewards related to the assets the
Company recognizes that the lease of the fixed assets is a financial lease.
The cost of fixed assets acquired by finance lease shall be determined according to the lower of the fair value
of the leased assets on the lease start date and the present value of the minimum lease payment.The depreciation policy consistent with their own depreciated assets is adopted for fixed assets leased by
financing. If it can be reasonably determined that the ownership of the leased asset is acquired at the expiration of
the lease term depreciation shall be accrued within the serviceable life of the leased asset; If it is impossible to
reasonably determine that the ownership of the leased asset can be acquired at the expiration of the lease term
depreciation shall be accrued within the shorter period of the lease term and the serviceable life of the leased asset.
17.Construction-in process
The construction in progress of the Company refers to the plant equipment and other fixed assets under
construction which are accounted for in detail according to the project and recorded according to the actual cost
including direct construction and installation costs and borrowing costs that meet the capitalization conditions.When the construction in progress reaches the scheduled usable state it will be carried over to fixed assets by
temporary estimation stop interest capitalization and start to accrue depreciation according to the determined
depreciation method of fixed assets. After the project is completed and final accounts are made the original
estimated amount will be adjusted according to the amount of final accounts but the original accrued depreciation
amount will not be adjusted.
18.Borrowing cost
(1) Recognition principle and capitalization period of borrowing cost capitalization
Borrowing costs incurred by the Company can be directly attributed to the purchase construction or
production of assets that meet the capitalization conditions and shall be capitalized when the following conditions
are met at the same time and included in the relevant asset costs:
① Production and expenditure have occurred;
② Borrowing costs have already occurred;
③ The purchase construction or production activities required to make the assets reach the intended usable
or saleable state have started.
Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are
abnormally interrupted in the process of purchase construction or production and the interruption time
continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as
expenses and included in the current profits and losses until the purchase and construction of assets or the
resumption of production activities. If the interruption is a necessary procedure for the purchased built or
produced assets that meet the capitalization conditions to reach the intended usable or saleable state the
capitalization of borrowing costs will continue.
Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased built
or produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as
expenses in the current period.
(2) Calculation method of capitalization amount of borrowing costs
Where a special loan is borrowed for the purpose of purchasing building or producing assets that meet the
capitalization conditions it shall be determined by deducting the interest income obtained by depositing unused
loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the
investment income obtained by temporary investment.If the general loan is occupied for the purpose of purchasing building or producing assets that meet the
capitalization conditions the interest amount of the general loan that should be capitalized shall be calculated and
determined according to the weighted average of the accumulated asset expenditure exceeding the special loan
portion multiplied by the capitalization rate of the occupied general loan. Capitalization rate is calculated and
determined according to the weighted average interest rate of general borrowings.
19.Intangible assets
(1) Pricing method useful life and impairment test
The Company recognizes the identifiable non-monetary assets owned or controlled by the enterprise as
intangible assets which have no physical form and the estimated future economic benefits related to the assets
are likely to flow into the enterprise and the cost of the assets can be reliably measured.The intangible assets of the Company are recorded according to the amount actually paid or the determined
value.
(1) If the purchase price of intangible assets exceeds the normal credit conditions which is of financing
nature in essence the cost of intangible assets is determined based on the present value of the purchase price. The
difference between the actual paid price and the present value of the purchase price shall be included in the current
profits and losses within the credit period except that it should be capitalized according to the regulations.
(2) The intangible assets invested by investors shall be taken as the cost according to the value agreed in the
investment contract or agreement unless the value agreed in the contract or agreement is unfair.
(3) The expenditure of internal research and development projects of the Company is divided into research
stage expenditure and development stage expenditure. Research refers to an original and planned investigation to
acquire and understand new scientific or technical knowledge. Development refers to the application of research
results or other knowledge to a plan or design to produce new or substantially improved materials devices and
products before commercial production or use.
Expenditures during the research phase of internal research and development projects are included in the
current profits and losses when they occur. Expenditures in the development stage of internal research and
development projects that meet the following conditions are recognized as intangible assets: it is technically
feasible to complete the intangible assets so that they can be used or sold; Have the intention to complete the
intangible assets and use or sell them; The ways in which intangible assets generate economic benefits including
those that can prove that there is a market for products produced by using the intangible assets or that the
intangible assets themselves exist in the market and that the intangible assets will be used internally should prove
their usefulness; Have sufficient technical financial and other resources to complete the development of the
intangible assets and have the ability to use or sell the intangible assets; Expenditures attributable to the
development stage of the intangible assets can be measured reliably.Intangible assets with limited service life of the Company shall be amortized on average within the service
life since the intangible assets are available for use. Intangible assets with uncertain service life are not amortized.The amortization amount of intangible assets is the amount after deducting the estimated salvage value from its
cost. For intangible assets for which impairment provision has been made the accumulated amount of impairment
provision for intangible assets has to be deducted.The amortization period of intangible assets with limited service life is as follows:
Type Amortization period
Land use right Remaining useful life
Software 3-5 years
20. Long-term amortizable expenses
Long-term deferred expenses are recorded according to the actual amount incurred and are amortized
equally in installments during the benefit period or within the prescribed period. If the long-term prepaid expense
item cannot benefit the future accounting period the amortized value of the item that has not been amortized will
be transferred to the current profits and losses.
21. Contract liabilities
Contract liabilities refer to the obligation of the Group to transfer goods to customers for the received or
receivable consideration from customers. If the customer has paid the contract consideration or the Group has
obtained the unconditional collection right before the Group transfers the goods to the customer the Group will
list the received or receivable amount as the contract liability at the earlier of the actual payment made by the
customer and the due date for payment. Contract assets and liabilities under the same contract are listed in net
amount while contract assets and liabilities under different contracts are not offset.
22. Employee Benefits
Employee compensation refers to various forms of remuneration or compensation given by the Company for
obtaining services provided by employees or dissolving labor relations. Employee compensation includes
short-term salary post-employment benefits dismissal benefits and other long-term employee benefits. Benefits
provided by the Company to spouses children dependents survivors of deceased employees and other
beneficiaries of employees are also employee compensation.
（1）Accounting methods of short-term benefits
During the accounting period when employees provide services the Company recognizes the actual
short-term salary as a liability which is included in the current profits and losses except that other accounting
standards require or allow it to be included in the cost of assets.
(2) Accounting methods for post-employment benefits
The Company classifies the post-employment benefit plan into defined contribution plan and defined benefit
plans. Post-employment benefit plan refers to the agreement reached between the Company and employees on
post-employment benefits or the rules or measures formulated by the Company to provide post-employment
benefits to employees among which the set deposit plan refers to the post-employment welfare plan in which the
Company no longer undertakes further payment obligations after paying a fixed fee to an independent fund;
Defined benefit plans refers to the post-employment benefit plan except the set-up deposit plan.
(3) Accounting Treatment Method of Demission Welfare
If the Company provides dismissal benefits to employees the employee compensation liabilities arising from
the dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: when
the company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relations
plan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganization
involving the payment of dismissal benefits.
（4）Other long-term employee benefits
If other long-term employee benefits provided by the Company to employees meet the conditions of the set
deposit plan they shall be handled according to the accounting policies of the set deposit plan mentioned above;
Otherwise the net liabilities or net assets of other long-term employee benefits shall be recognized and measured
in accordance with the accounting policies of defined benefit plans mentioned above.
23.Estimated liabilities
(1) Recognition criteria of estimated liabilities
If the obligations related to contingencies stipulated by the Company meet the following conditions at the
same time they are recognized as estimated liabilities:
① The obligations are the current obligations undertaken by the enterprise;
② Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;
③ The amount of the obligations can be measured reliably.
(2) Measurement method of estimated liabilities
Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill
relevant current obligations. There is a continuous range of required expenditure and the possibility of occurrence
of various results in this range is the same and the best estimate is determined according to the intermediate value
in this range. In other cases the best estimates are treated as follows:
① Contingencies involving a single item shall be determined according to the most probable amount.
② Contingencies involving multiple items shall be calculated and determined according to various possible
results and relevant probabilities.When determining the best estimate the risk uncertainty and time value of money related to contingencies
shall be considered comprehensively. If the time value of money has great influence the best estimate is
determined by discounting the related future cash outflow.If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be
compensated by a third party the compensation amount can be recognized as an asset only when it is basically
confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the
estimated liabilities.The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is
conclusive evidence that the book value cannot truly reflect the current best estimate the book value shall be
adjusted according to the current best estimate.
24. Revenues
Accounting policies adopted for income recognition and measurement
Income is the total inflow of economic benefits formed in the daily activities of the Company which will
lead to the increase of shareholders' equity and has nothing to do with the capital invested by shareholders.Revenue is recognized when its amount and related costs can be reliably measured the related economic benefits
are likely to flow into the company and other recognition conditions of the following different types of income
are met at the same time.The Company's main income includes: income from traffic service fees and provision of labor services.
(1) Toll service fee income
The toll income of roads and bridges is determined according to the amount collected and receivable by
vehicles when passing through.
(2) Income from providing labor services
For services started and completed in the same fiscal year income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years the Company shall
on the balance sheet date recognize the related labor income by the percentage of completion method provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied the results of the transaction can be reliably estimated: ① the total income and total cost of labor
services can be reliably measured; ② the economic benefits related to the transaction can flow into the enterprise;
③ the degree of completion of labor services can be reliably determined.
For services started and completed in the same fiscal year income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years the Company shall
on the balance sheet date recognize the related labor income by the percentage of completion method provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied the results of the transaction can be reliably estimated: ① the total income and total cost of labor
services can be reliably measured; ② the economic benefits related to the transaction can flow into the
enterprise;
If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably the
following situations shall be dealt with respectively:
① If the labor cost already incurred is expected to be compensated the income from the service shall be
recognized according to the amount of the labor cost already incurred and the labor cost shall be carried over at
the same amount.② If the incurred labor cost is not expected to be compensated the incurred labor cost shall be included in
the profits and losses of the current period and the income from the provision of labor service shall not be
recognized.When the contracts or agreements signed between the Company and other enterprises include selling goods
and providing services if the part for selling goods and the part for providing services can be distinguished and
measured separately the part for selling goods will be treated as goods sales and the part for providing services
will be treated as service provision. Sales of goods and services can not be distinguished or although they can be
distinguished they can not be measured separately. All parts for the selling goods and providing services will be
treated as sales of goods.The adoption of different business models in similar businesses leads to differences in accounting policies for
income recognition
25.Contract cost
If the incremental cost incurred by the Company for obtaining the contract is expected to be recovered it
shall be recognized as an asset as the contract acquisition cost. However if the amortization period of the asset
does not exceed one year it will be included in the current profits and losses when it occurs.If the cost incurred for the performance of the contract does not fall within the scope of other accounting
standards for business enterprises other than Accounting Standards for Business Enterprises No.14-Revenue
(Revised in 2017) and meets the following conditions at the same time it will be recognized as an asset for
contract performance cost: ① The cost is directly related to a current or expected contract including direct labor
direct materials manufacturing expenses (or similar expenses) costs explicitly borne by customers and other
costs incurred only because of the contract; ② This cost increases the resources of the Company for fulfilling its
performance obligations in the future; ③ The cost is expected to be recovered.
Assets related to the contract cost are amortized on the same basis as the recognition of commodity income
related to the assets and are included in the current profits and losses.
26. Government Grants
Government subsidies are recognized when they meet the conditions attached to government subsidies and
can be received.Government subsidies for monetary assets shall be measured according to the amount received or receivable.Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be obtained
reliably it shall be measured according to the nominal amount of 1 yuan.Government subsidies related to assets refer to government subsidies obtained by the Company for
purchasing and building or forming long-term assets in other ways; Otherwise as a government subsidy related to
income.Where the government documents do not specify the object of the subsidy and the subsidy can form
long-term assets the part of the government subsidy corresponding to the value of the assets shall be regarded as
the government subsidy related to the assets and the rest shall be regarded as the government subsidy related to
the income; Where it is difficult to be distinguished government subsidies as a whole are treated as
income-related government subsidies.Government subsidies related to assets offset the book value of related assets or are recognized as deferred
revenue and included in profits and losses by stages according to a reasonable and systematic method within the
service life of related assets. Government subsidies related to income which are used to compensate related costs
or losses that have occurred shall be included in current profits and losses or offset related costs; If they are used
to compensate related costs or losses in later periods they will be included in the deferred revenue and they will
be included in the current profits and losses or offset related costs during the recognition period of related costs or
losses. Government subsidies measured in nominal amount are directly included in current profits and losses. The
Company adopts a consistent approach to the same or similar government subsidy business.
Government subsidies related to daily activities according to the essence of economic business are included
in other income or offset related costs. Government subsidies irrelevant to routine activities shall be included into
the non-operating receipt and disbursement.When the recognized government subsidy needs to be returned if the book value of related assets is offset
during initial recognition the book value of assets will be adjusted; If there is a relevant deferred revenue balance
the book balance of the relevant deferred revenue will be offset and the excess will be included in the current
profits and losses; In other cases it is directly included in the current profits and losses.
For the discount interest of preferential policy loans if the finance allocates the discount interest funds to the
lending bank the actually received loan amount is taken as the recorded value of the loan and the borrowing cost
is calculated according to the loan principal and preferential policy interest rate. If the finance directly allocates
the discount interest funds to the Company the discount interest will offset the borrowing costs.
27.Deferred income tax assets and deferred income tax liabilities
The Company adopts the balance sheet liability method for income tax accounting treatment.
(1) Deferred tax assets
① If there is a deductible temporary difference between the book value of an asset or liability and its tax
basis the deferred income tax assets generated by the deductible temporary difference shall be calculated and
confirmed according to the applicable tax rate during the expected period of recovering the asset or paying off the
liability.② On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be
obtained in the future period to offset the deductible temporary difference the unrecognized deferred income tax
assets in the previous period shall be recognized.③ On the balance sheet date the book value of deferred income tax assets shall be reviewed. If it is unlikely
that enough taxable income will be obtained in the future period to offset the benefits of deferred income tax
assets the book value of deferred income tax assets will be written down. When sufficient taxable income is likely
to be obtained the written-down amount will be reversed.
(2) Deferred income tax liabilities
If there is a taxable temporary difference between the book value of assets and liabilities and their tax basis
the deferred income tax liabilities arising from the taxable temporary difference shall be recognized according to
the applicable tax rate during the expected period of recovering the assets or paying off the liabilities.
28.Lease
(1) Accounting methods for operating leases
As the lessee the Company's operating lease rent is included in the relevant asset cost or current profit and
loss according to the straight-line method in each period of the lease term; The initial direct expenses incurred are
included in the current profits and losses; Contingent rents are included in current profits and losses when they
actually occur.
As the lessor the Company includes the assets used as operating leases in the relevant items in the balance
sheet according to the nature of the assets; For the rent of operating lease it is recognized as the current profit and
loss according to the straight-line method in each period of the lease term; The initial direct expenses incurred are
included in the current profits and losses; For the fixed assets in the operating lease assets the depreciation policy
of similar assets is adopted for depreciation; For other operating lease assets a systematic and reasonable method
is adopted for amortization; Contingent rents are included in current profits and losses when they actually occur.
(2) Accounting methods for financial leasing
① As the lessee
On the start date of the lease term the Company takes the lower of the fair value of the leased assets on the
lease start date and the present value of the minimum lease payment as the recorded value of the leased assets and
the minimum lease payment as the recorded value of the long-term payables with the difference as the
unrecognized financing expenses; Initial direct expenses such as handling fees attorney fees travel expenses
stamp duty etc. which occur during the lease negotiation and signing of the lease contract are included in the
value of the leased assets; Unrecognized financing expenses are allocated in each period of the lease term and the
current financing expenses are calculated and recognized by the effective interest rate method; Contingent rents
are included in current profits and losses when they actually occur.When calculating the present value of the minimum lease payment if the lessor's lease inclusive interest rate
can be obtained the lease inclusive interest rate shall be used as the discount rate; Otherwise the interest rate
stipulated in the lease contract shall be used as the discount rate. If the lessor's lease interest rate cannot be
obtained and the lease contract does not stipulate the interest rate the bank loan interest rate of the same period
shall be used as the discount rate.The Company adopts the depreciation policy consistent with that of the self-owned fixed assets to withdraw
the depreciation of the leased assets. If it can be reasonably determined that the ownership of the leased asset is
acquired at the expiration of the lease term depreciation shall be accrued within the service life of the leased asset.If it is impossible to reasonably determine that the ownership of the leased asset can be acquired at the expiration
of the lease term depreciation shall be accrued within the shorter period of the lease term and the service life of
the leased asset.
② As the lessor
On the start date of the lease term the Company shall take the sum of the minimum lease receipt amount and
the initial direct expenses on the lease start date as the recorded value of the financial lease receivable and records
the unsecured residual value; Recognize the difference between the sum of the minimum lease payment amount
initial direct expenses and unsecured residual value and its present value as unrealized financing income;
Distribute unrealized financing income in each period of the lease term; Calculate and confirm the financing
income of the current period by using the effective interest rate method; And include contingent rents in current
profits and losses when they actually occur.
29. Held-for-sale non-current assets disposal group and termination of operation
(1) Classification and measurement of held-for-sale non-current assets or disposal groups
When the book value is recovered mainly by selling (including the exchange of non-monetary assets with
commercial substance) rather than continuously using a non-current asset or disposal group the non-current asset
or disposal group is classified as held for sale.The above-mentioned non-current assets do not include investment real estate measured by fair value model
biological assets measured by net amount of fair value minus selling expenses assets formed by employee
compensation financial assets deferred income tax assets and rights arising from insurance contracts.The disposal group refers to a group of assets disposed of together by sale or other means in a transaction as
a whole and liabilities directly related to these assets transferred in the transaction. Under certain circumstances
the disposal group includes goodwill obtained in business combination etc.
At the same time non-current assets or disposal groups that meet the following conditions are classified as
held for sale: according to the practice of selling such assets or disposal groups in similar transactions the
non-current assets or disposal groups can be sold immediately under the current situation; The sale is very likely
to happen that is a resolution has been made on a sale plan and a firm purchase commitment has been obtained
and it is expected that the sale will be completed within one year. If the control over subsidiaries is lost due to the
sale of investments in subsidiaries whether or not the Company retains part of the equity investments after the
sale when the investment in subsidiaries to be sold meets the classification conditions of held-for-sale the
investment in subsidiaries will be classified as held-for-sale as a whole in individual financial statements and all
assets and liabilities of subsidiaries will be classified as held-for-sale in consolidated financial statements.When the non-current assets or disposal groups held for sale are initially measured or re-measured on the
balance sheet date the difference between the book value and the net amount after deducting the selling expenses
from the fair value is recognized as the asset impairment loss. For the amount of asset impairment loss recognized
for the held-for-sale disposal group the book value of goodwill in the disposal group is offset first and then the
book value of non-current assets in the disposal group is offset proportionally.If the net amount of non-current assets held for sale or disposal group's fair value minus selling expenses
increases on the subsequent balance sheet date the previously written-down amount will be restored and reversed
within the amount of asset impairment loss recognized after being classified as held-for-sale and the reversed
amount will be included in the current profits and losses. The book value of offset goodwill shall not be reversed.Non-current assets held for sale and assets in disposal group held for sale are not depreciated or amortized;
Interest and other expenses of liabilities in disposal group held for sale continue to be recognized. All or part of
the investments of affiliated enterprises or joint ventures classified as held-for-sale shall be accounted for by the
equity method for those classified as held for sale while those retained (not classified as held-for-sale) shall
continue to be accounted for by the equity method; When the Company loses significant influence on the affiliated
enterprise and joint venture due to the sale it shall stop using the equity method.If a certain non-current asset or disposal group is classified as held for sale but the classification conditions
of held for sale are no longer met the Company will stop classifying it as held for sale and measure it according to
the lower of the following two amounts:
① For the book value of the asset or disposal group before it is classified as held for sale the amount
adjusted according to the depreciation amortization or impairment which should have been recognized without
being classified as held for sale;
② Recoverable amount.
(2) Termination of operation
Termination of operation refers to the components that have been disposed of by the Company or classified
as held for sale by the Company and can be distinguished separately which meet one of the following conditions:
① This component represents an independent main business or a separate main business area.② This component is part of an associated plan to dispose of an independent main business or a separate
main business area.③ This component is a subsidiary acquired for resale.
(3) Presentation
In the balance sheet the Company lists the non-current assets held for sale or the assets in the disposal group
held for sale as "assets held for sale" and lists the liabilities in the disposal group held for sale as "liabilities held
for sale".The Company separately lists the profit and loss from continuing operations and the profit and loss from
termination of operations in the income statement. For non-current assets or disposal groups held for sale that do
not meet the definition of termination of operation the impairment loss reversal amount and disposal profit and
loss are listed as the profit and loss of continuing operations. Operating profit and loss and disposal profit and loss
such as impairment loss and reversal amount of discontinued operation are listed as discontinued operation profit
and loss.
A disposal group that intends to terminate its use instead of selling and meets the conditions of relevant
components in the definition of operation termination shall be listed as operation termination from the date when
it ceases to use.
For the discontinued operations listed in the current period in the current financial statements the
information originally listed as the profit and loss of continuing operations is re-listed as the profit and loss of
discontinued operations in the comparable accounting period. If the termination of operation no longer meets the
classification conditions for held-for-sale the information originally listed as the profit and loss of operation
termination in the current financial statements will be listed again as the profit and loss of continuing operation in
the comparable accounting period.
30. Impairment of assets
The following signs indicate that the assets may be impaired:
(1) The market price of assets fell sharply in the current period which was significantly higher than the
expected decline due to the passage of time or normal use.
(2) The economic technical or legal environment in which the Company operates and the market in which
the assets are located have undergone major changes in the current period or in the near future which will have
adverse effects on the Company.
(3) The market interest rate or other market return on investment has increased in the current period which
affects the discount rate used by enterprises to calculate the present value of the estimated future cash flow of
assets resulting in a significant decrease in the recoverable amount of assets.
(4) There is evidence that the assets are outdated or their entities have been damaged.
(5) Assets have been or will be idle terminated or planned to be disposed of in advance.
(6) The evidence reported by the company shows that the economic performance of assets has been or will
be lower than expected such as the net cash flow created by assets or the realized operating profit (or loss) is far
lower than the expected amount.
(7) Other indications that assets may have been impaired.
On the balance sheet date the Company judges various assets that are applicable to the Accounting Standards
for Business Enterprises No.8-Impairment of Assets such as long-term equity investment fixed assets engineering
materials construction in progress intangible assets (except those with uncertain service life) and conducts
impairment test when there are signs of impairment-estimating their recoverable amount. The recoverable amount
is determined by the higher of the net amount of the fair value of the asset minus the disposal expenses and the
present value of the estimated future cash flow of the asset. If the recoverable amount of an asset is lower than its
book value the book value of the asset shall be written down to the recoverable amount and the written-down
amount shall be recognized as the asset impairment loss which shall be included in the current profits and losses
and the corresponding asset impairment reserve shall be accrued at the same time.If there are signs that an asset may be impaired the Company usually estimates its recoverable amount on the
basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset the recoverable
amount of the asset group is determined based on the asset group to which the asset belongs.
Asset group is the smallest asset portfolio that can be recognized by the Company and its cash inflow is
basically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. The
identification of asset group is based on whether the main cash inflow generated by asset group is independent of
other assets or cash inflow of asset group.The Company conducts impairment test every year for intangible assets with uncertain goodwill and service
life formed by business combination and not yet in serviceable condition regardless of whether there is any sign
of impairment. The impairment test of goodwill is carried out in combination with its related asset group or
combination of asset groups.Once the asset impairment loss is confirmed it will not be reversed in the following accounting period.
31.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □ Not applicable
Contents and causes for changes of
accounting policy
Approval procedures Remarks
On July 5 2017 the Ministry of Finance
issued the Accounting Standards for
Business Enterprises No.14-Income
(Revised in 2017) (CK [2017] No.22)
(hereinafter referred to as the "New
Income Standards").It was adopted at the 4th meeting of the
9th Board of Directors of the Company
on April 3 2020
The Company began to implement the
aforementioned new income standards
from January 1 2020
On July 5 2017 the Ministry of Finance issued the Accounting Standards for Business Enterprises
No.14-Income (Revised in 2017) (CK [2017] No.22) (hereinafter referred to as the "New Income Standards").
After the fourth meeting of the ninth board of directors of the company approved the resolution on April 3 2020
the company will implement the aforesaid New Income Standards from January 1 2020.The New Income Standards establish a new income recognition model for regulating the income generated
by contracts with customers. In order to implement the new revenue standard the Company re-evaluated the
recognition measurement accounting and presentation of main contract income. According to the new income
standards only the cumulative impact of unfinished contracts on January 1 2020 are adjusted. The accumulated
impact amount of the first implementation is adjusted. The amount of retained earnings at the beginning of the
first implementation period (i.e. January 1 2020) and other related items in the financial statements will not be
adjusted for the information of comparable periods.Influence of implementing new income standards on financial statements on January 1 2020:
Items December 312019（Before change） January 12020（After change）
Consolidated statements Parent statement Consolidated statements Parent statement
Account receivable 125343724.66 21864051.27 127694377.99 21864051.27
Other account
receivable
26618178.57 13435651.19 19172247.47 13435651.19
Contract assets 5095277.77
Inventories 111683.22 111683.22
Other Non-current
assets
50909325.73 36901029.57 50909325.73 36901029.57
Advance receipts 15605094.69 12817484.06
Contract liabilities 2787610.63
Retained profit 3877431844.64 3710584722.68 3877431844.64 3710584722.68
Surplus reserves 910425068.90 894580785.25 910425068.90 894580785.25
（2）Significant accounting policy changes
√ Applicable □ Not applicable
Contents and causes of changes in accounting estimates Approval procedure
Time point at which
the application begins
Rema
rks
From January 1 2020 the Traffic Volume Forecast and Charge
Revenue Report of Foshan-Kaiping Expressway and the
Traffic Volume Forecast and Charge Revenue Report of
Guangzhu Section of Jiangzhu Expressway issued by
Guangdong Transportation Planning and Design Institute Co.Ltd. in 2019 for the Fokai Branch of Guangdong Expressway
Development Co. Ltd. a branch of the Company and Jingzhu
Expressway Guangzhu Section Co. Ltd. a holding subsidiary
are used as depreciation basis
On December 31 2019 the
third (temporary) meeting
of the ninth board of
directors was held and the
meeting passed the
Proposal on Changes in
Accounting Estimates
January 12020
On December 31 2019 the Company held the 3rd (provisional) meeting of the ninth board of directors
which passed the Proposal on Changes in Accounting Estimates and agreed to adopt the Traffic Volume Forecast
and Charge Revenue Report of Foshan-Kaiping Expressway and the Traffic Volume Forecast and Charge Revenue
Report of Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway issued by Guangdong Transportation
Planning and Design Institute Co. Ltd. in 2019 for the Fokai Branch of Guangdong Expressway Development Co.Ltd. a branch of the Company and Jingzhu Expressway Guangzhu Section Co. Ltd. a holding subsidiary from
January 1 2020. The Company adopts the future applicable method for this item. This change in accounting
estimate results in a decrease of RMB 84060742.83 in depreciation of fixed assets in the current period than the
original accounting estimate a decrease of RMB 84060742.83 in operating cost an increase of RMB
63045557.12 in net profit attributable to the shareholders of the parent company and an increase of RMB
60150595.41 in net profit attributable to the minority shareholders of the parent company.
Contents and causes of changes in
accounting estimates
Approval procedure Time point at which
the application begins
Affected report
items
Impact amount
Forecast traffic volume of expressway Resolution of the board
of directors
January 1 2020 Fixed assets 84060742.83
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Governing Financial Instruments Revenue or Leases from year 2020
Applicable
Whether need to adjust the balance sheet account at the beginning of the year
√ Yes □No
Consolidated balance sheet
In RMB
Items December 312019 January 12020
Amount involved in the
adjustment
Current asset：
Monetary fund 2817920894.50 2817920894.50
Settlement provision
Outgoing call loan
Transactional financial
assets
Derivative financial assets
Notes receivable
Account receivable 125343724.66 127694377.99 2350653.33
Financing of receivables
Prepayments 10894246.41 10894246.41
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other account receivable 26618178.57 19172247.47 -7445931.10
Including：Interest
receivable
Dividend receivable 7205472.90 7205472.90
Repurchasing of financial
assets
Inventories 111683.22 111683.22
Contract assets 5095277.77 5095277.77
Assets held for sales
Items December 312019 January 12020
Amount involved in the
adjustment
Non-current asset due
within 1 year
51745.32 51745.32
Other current asset
Total of current assets 2980940472.68 2980940472.68
Non-current assets
Loans and payment on
other’s behalf disbursed
Debt investment
Other investment on bonds
Long-term receivable
Long term share equity
investment
3255739898.36 3255739898.36
Other equity instruments
investment
1835822604.77 1835822604.77
Other non-current financial
assets
Property investment 3331500.37 3331500.37
Fixed assets 8925700473.65 8925700473.65
Construction in progress 229098299.48 229098299.48
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 6393895.17 6393895.17
Development expenses
Goodwill
Long-germ expenses to be
amortized
1114764.44 1114764.44
Deferred income tax asset 385494106.13 385494106.13
Other non-current asset 50909325.73 50909325.73
Total of non-current assets 14693604868.10 14693604868.10
Total of assets 17674545340.78 17674545340.78
Current liabilities
Short-term loans
Loan from Central Bank
Borrowing funds
Items December 312019 January 12020
Amount involved in the
adjustment
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 290657734.31 290657734.31
Advance receipts 15605094.69 12817484.06 -2787610.63
Contract liabilities 2787610.63 2787610.63
Selling of repurchased
financial assets
Deposit taking and
interbank deposit
Entrusted trading of
securities
Entrusted selling of
securities
Employees’ wage payable 14822524.70 14822524.70
Tax payable 84257586.94 84257586.94
Other account payable 626180586.92 626180586.92
Including：Interest payable
Dividend payable 20020119.31 20020119.31
Fees and commissions
payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due
within 1 year
795861958.07 795861958.07
Other current liability 189628.17 189628.17
Total of current liability 1827575113.80 1827575113.80
Non-current liabilities：
Reserve fund for insurance
contracts
Long-term loan 4640425000.00 4640425000.00
Bond payable 678124972.89 678124972.89
Items December 312019 January 12020
Amount involved in the
adjustment
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 39369379.91 39369379.91
Long-term remuneration
payable to staff
Expected liabilities
Deferred income
Deferred income tax
liability
238453976.29 238453976.29
Other non-current
liabilities
Total non-current liabilities 5596373329.09 5596373329.09
Total of liability 7423948442.89 7423948442.89
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2562570465.31 2562570465.31
Less：Shares in stock
Other comprehensive
income
382193344.90 382193344.90
Special reserve
Surplus reserves 910425068.90 910425068.90
Common risk provision
Retained profit 3877431844.64 3877431844.64
Total of owner’s equity
belong to the parent
company
9823426849.75 9823426849.75
Minority shareholders’
equity
427170048.14 427170048.14
Total of owners’ equity 10250596897.89 10250596897.89
Total of liabilities and 17674545340.78 17674545340.78
Items December 312019 January 12020
Amount involved in the
adjustment
owners’ equity
Adjustment statement
Parent Company Balance Sheet
In RMB
Items December 312019 January 12020
Amount involved in the
adjustment
Current asset：
Monetary fund 2791384501.78 2791384501.78
Transactional financial
assets
Derivative financial
assets
Notes receivable
Account receivable 21864051.27 21864051.27
Financing of receivables
Prepayments 1737598.88 1737598.88
Other account receivable 13435651.19 13435651.19
Including：Interest
receivable
Dividend receivable 7205472.90 7205472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due
within 1 year
151637139.08 151637139.08
Other current asset
Total of current assets 2980058942.20 2980058942.20
Non-current assets：
Debt investment 537903684.98 537903684.98
Other investment on
bonds
Long-term receivable
Long term share equity 4789404907.17 4789404907.17
Items December 312019 January 12020
Amount involved in the
adjustment
investment
Other equity instruments
investment
1835822604.77 1835822604.77
Other non-current financial
assets
Property investment 3079362.12 3079362.12
Fixed assets 6818701482.08 6818701482.08
Construction in progress 46952925.08 46952925.08
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 2533878.12 2533878.12
Development expenses
Goodwill
Long-germ expenses to be
amortized
Deferred income tax asset 385296935.33 385296935.33
Other non-current asset 36901029.57 36901029.57
Total of non-current assets 14456596809.22 14456596809.22
Total of assets 17436655751.42 17436655751.42
Current liabilities
Short-term loans
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 129930285.56 129930285.56
Advance receipts
Contract Liabilities
Employees’ wage
payable
6340740.61 6340740.61
Tax payable 8704510.83 8704510.83
Other account payable 582131356.01 582131356.01
Items December 312019 January 12020
Amount involved in the
adjustment
Including：Interest payable
Dividend payable 20020119.31 20020119.31
Liabilities held for sales
Non-current liability due
within 1 year
744589133.72 744589133.72
Other current liability 821133339.57 821133339.57
Total of current liability 2292829366.30 2292829366.30
Non-current liabilities：
Long-term loan 4243730000.00 4243730000.00
Bond payable 678124972.89 678124972.89
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable 39369379.91 39369379.91
Long-term remuneration
payable to staff
Expected liabilities
Deferred income
Deferred income tax
liability
129978356.56 129978356.56
Other non-current
liabilities
Total non-current liabilities 5091202709.36 5091202709.36
Total of liability 7384032075.66 7384032075.66
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 2974458696.93 2974458696.93
Less：Shares in stock
Other comprehensive
income
382193344.90 382193344.90
Special reserve
Items December 312019 January 12020
Amount involved in the
adjustment
Surplus reserves 894580785.25 894580785.25
Retained profit 3710584722.68 3710584722.68
Total of owners’ equity 10052623675.76 10052623675.76
Total of liabilities and
owners’ equity
17436655751.42 17436655751.42
Note
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases from year 2020
□ Applicable √ Not applicable
32. Fair value measurement
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date.The Company measures related assets or liabilities at fair value assuming that the orderly transaction of
selling assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is no
major market the Company assumes that the transaction will be conducted in the most favorable market of related
assets or liabilities. The main market (or the most favorable market) is the trading market that the Company can
enter on the measurement day. The Company adopts the assumptions used by market participants to maximize
their economic benefits when pricing the assets or liabilities.When measuring non-financial assets at fair value the ability of market participants to use the assets for the
best purpose to generate economic benefits or the ability to sell the assets to other market participants for the best
purpose to generate economic benefits shall be considered.The Company adopts the valuation technology which is applicable in the current situation and supported by
sufficient available data and other information and gives priority to the relevant observable input values and only
uses the unobservable input values when the observable input values are unavailable or impractical.
For assets and liabilities measured or disclosed at fair value in financial statements it shall determine the fair
value level according to the lowest level input value which is of great significance to fair value measurement as a
whole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained
on the measurement date in an active market; The second-level input value is directly or indirectly observable
input values of related assets or liabilities except the first-level input value; The third level input value is the
unobservable input value of related assets or liabilities.On each balance sheet date the Company reassesses the assets and liabilities recognized in the financial
statements that are continuously measured at fair value to determine whether there is a conversion between the
fair value measurement levels.VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
VAT Taxable income 3%、5%、6%、9%、13%
City maintenance and construction tax The actual payment of turnover tax 7%、5%
Enterprise income tax Taxable income 25%
Education Fee Surcharge The actual payment of turnover tax 3%
Local education surcharge The actual payment of turnover tax 2%
2.Preferential tax
According to the Notice of the Ministry of Finance and the State Administration of Taxation on Fully
Opening the Pilot of Changing Business Tax to VAT (CS [2016] No.36) the qualified contract energy
management services of the subsidiary Guangdong High-speed Technology Investment Co. Ltd. are exempt from
VAT.
VII. Notes to the major items of consolidated financial statement
Unless otherwise specified in the following notes (including the notes to main items in the financial
statements of the parent company) "the beginning of the period" refers to January 1 2020 "the end of the period"
refers to June 30 2020 "current period" refers to January-June 2020 and "last period" refers to January-June
2019.(unless otherwise specified)
1.Monetary Capital
In RMB
Items Amount in year-end Balance Year-beginning
Cash 92943.37 20587.32
Bank deposit 3058886322.31 2817384626.65
Other 517476.78 515680.53
Total 3059496742.46 2817920894.50
Other note
On January 302020The balance of restricted bank deposits at the end of the period was 1221200.00 yuan which
was the land reclamation fund deposited into the fund custody account for the reconstruction and expansion project
of Sanbao to Shuikou section of Fokai Expressway.
2. Account receivable
1.Classification account receivables.
In RMB
Category
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision
Book value
Book Balance Bad debt provision
Book value
Amount Proporti
on(%)
Amount Proportion(
%)
Amount Proport
ion(%)
Amount Proportio
n(%)
Amount
Of which：
Accrual of bad debt provision by
portfolio
135661315.25 100% 1591677.10 1.17% 134069638.15 129049371.28 100% 1354993.29 1.05% 127694377.99
Of which：
Aging portfolio 133863918.46 98.68% 1591677.10 1.19% 132272241.36 126698717.95 98.18% 1354993.29 1.07% 125343724.66
Quality guarantee portfolio 1797396.79 1.32% 1797396.79 2350653.33 1.82% 2350653.33
Total 135661315.25 100% 1591677.10 1.17% 134069638.15 129049371.28 1354993.29 127694377.99
Accrual of bad debt provision by portfolio：Accrual of bad debt provision by aging portfolio
In RMB
Name
Balance in year-end
Receivable accounts Bad debt provision Withdrawal proportion
Within 1 year 124471086.67 0.00%
1-2 years 8465399.40 846539.95 10.00%
2-3 years 75000.00 22500.00 30.00%
3-4 years 123880.00 61940.00 50.00%
4-5 years 678552.39 610697.15 90.00%
Over 5 years 50000.00 50000.00 100.00%
Total 133863918.46 1591677.10 --
Note of the basis of recognizing the portfolio:
Provision for bad debts according to the age portfolio
Accrual of bad debt provision by portfolio: Notes of the basis of Quality guarantee the group
In RMB
Name
Balance in year-end
Receivable accounts Bad debt provision Withdrawal proportion
Quality guarantee 1797396.79
Total 1797396.79 --
Notes of the basis of recognizing the portfolio:
Provision for bad debts according to Quality guarantee portfolio
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 124471086.67
1-2 years 8590178.95
2-3 years 116508.25
Over 3 years 2483541.38
3-4 years 638877.60
4-5 years 1093218.84
Over 5 years 751444.94
Aging Closing balance
Total 135661315.25
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Category
Opening
balance
Amount of change in the current period
Closing
balance Accrual
Reversed or
collected
amount
Write-off Other
Aging portfolio 1354993.29 236683.81 1591677.10
Total 1354993.29 236683.81 1591677.10
Of which the significant amount of the reversed or collected part during the reporting period :None
（3）The current accounts receivable write-offs situation
None
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Guangdong Union Electronic Services
Co. Ltd.
51964979.29 38.30%
Guangzhou Lingte Electronic Co.Ltd. 19955000.00 14.71%
Guangdong Humen Bridge Co. Ltd. 16318549.64 12.03%
Guangdong Jingzhu Expressway
Guangzhu North Section Co. Ltd.
10324414.00 7.61%
Shandong Boan Intelligent Technology
Co. Ltd
7409966.25 5.46% 740996.63
Total 105972909.18 78.11%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
3. Prepayments
（1）Age analysis
In RMB
Age
Balance in year-end Balance Year-beginning
Amount Proportion（%） Amount Proportion（%）
Within 1 year 2902724.33 94.48% 10724508.41 98.44%
Over 3 years 169738.00 5.52% 169738.00 1.56%
Total 3072462.33 -- 10894246.41 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
None
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
In RMB
Name Relations with the
Company
Amount Aging Reasons for
non-settlement
Proportion %
China Pacific Property Insurance Co.
Ltd. Guangdong Branch
Non- Related party 838016.00 Within 1
year
Prepaid insurance 27.28
Xingning Hongda Subcontracting
Co. Ltd.
Non- Related party 648970.00 Within 1
year
Outstanding period 21.12
Guangdong Feida Traffic
Engineering Co. Ltd.
Non- Related party 595546.00 Within 1
year
Prepaid Engineering
funds
19.38
China Ping An Property Insurance
Co. Ltd. Guangdong Branch
Non- Related party 300247.50 1 Within 1
year
Prepaid insurance 9.77
Guangzhou ITS Communications
Equipment Co. Ltd.
Non- Related party 226200.00 Within 1
year
Unfinished works
outstanding
7.36
Total / 2608979.50 / / 84.91
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 10955472.90 7205472.90
Other receivable 12027702.56 11966774.57
Total 22983175.46 19172247.47
（1）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment 1205472.90 1205472.90
Items Balance in year-end Balance Year-beginning
No.1 Limited partnership enterprise
Guangdong Yueke Technology Petty Loan Co. Ltd. 6000000.00
Zhaoqing Yuezhao Higyway Co. Ltd. 9750000.00
Total 10955472.90 7205472.90
2）Significant dividend receivable aged over 1 year
None
3）Bad-debt provision
□ Applicable √ Not applicable
（2） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Balance of settlement funds for
securities transactions
47528056.18 47528056.18
Cash deposit 2401147.29 3435633.29
Gelin Enze Account 4007679.91 4007679.91
Petty cash 4206145.37 3580634.57
Tran Other safer of long-term assets
receivable
935820.00 935820.00
Other 4513802.08 4043898.89
Total 63592650.83 63531722.84
2）The withdrawal amount of the bad debt provision：
In RMB
Bad Debt Reserves
Stage 1 Stage 2 Stage 3
Total
Expected credit
losses over the next
12 months
Expected credit loss over
life (no credit
impairment)
Expected credit losses for
the entire duration (credit
impairment occurred)
Balance as at January
1 2020
29212.18 51535736.09 51564948.27
Balance as at January
1 2020 in current
—— —— —— ——
Balance as at January
30 2020
29212.18 51535736.09 51564948.27
Of which the significant amount of the reversed or collected part during the reporting period :None
Note 1：The parent company once paid 33683774.79 yuan into Kunlun Securities Co. Ltd Guangdong
Expressway technology investment Co. Ltd once paid 18000000.00 yuan into Kunlun Securities Co. Ltd.
Qinghai Province Xining City’s intermediate people’s court made a adjudication under law declared that Kunlun
Securities Co. Ltd went bankrupt and repaid debt in November 11 2006. On March 2007 The Company and
Guangdong Expressway Technology Investment Co. Ltd had switched the money that paid into Kunlun Securities
Co. Ltd to other account receivable and follow the careful principle to doubtful debts provision. The 710349.92
yuan Credit was Recovered in 2008 The 977527.77 yuan credit was recovered in 2011 The 652012.00 yuan
Credit was recovered in 2014 The 1815828.92 yuan Credit was recovered in 2018 and the provision for had deb
Note 2：Guangdong Expressway Technology investment Co. Ltd .should charge Beijing Gelin Enze Organic
Fertilizer Co. Ltd.for 12220079.91 yuan. Eight millions of it was entrust loan three million was temporary
borrowing 12400.00 yuan is the commission loan interest the rest of it was advance money for another Beijing
Gelin Enze Organic Fertilizer Co. Ltd’s operating status was had and had already ceased producing Accordingly
the controlling subsidiary of the company Guangdong Expressway Investment Co. Ltd. accounted full provision
for Bad debt 12220079.91 yuan provision. The company in 2014 recovered arrears of 8000000.00
yuan rushed back to the provision for bad debts and write off uncollected interest entrusted loans according to tTh
e settlement agreement of 212400.00 yuan.
Changes in significant book balances for loss preparation current period
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 6692782.19
1-2 years 1401091.99
2-3 years 446715.70
Over 3 years 55052060.95
3-4 years 1492984.00
4-5 years 503491.88
Over 5 years 53055585.07
Total 63592650.83
3） Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Category
Amount of change in the current period
Closing
balance Accrual
Reversed or
collected
amount
Write-off Other
Accrual of single item 51535736.09 51535736.09
Accrual of
portfolio-Aging
portfolio
29212.18 29212.18
Accrual of
portfolio-Other
portfolio
Total 51564948.27 51564948.27
Where the current bad debts back or recover significant amounts:None
4)The actual write-off other accounts receivable:None
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Name Nature
Closing
balance
Aging
Proportion of the total
year end balance of
the accounts
receivable(%)
Closing
balance of bad
debt provision
Kunlun Securities Co.Ltd
Securities trad
ing settlement
funds
47528056.18
Over 5
years
74.74% 47528056.18
Beijing Gelin Enze
Current
account
4007679.91
Over 5
years
6.30% 4007679.91
Guangdong Litong Real Estates
Investment Co. Ltd.
Deposit 1505864.00 3-4 years 2.37%
Guangdong Litong Real Estates
Investment Co. Ltd.
Deposit 9213.22 1-2 years 0.01%
Foshan Hezhan Yinghui Property
Management Co. Ltd.
Disposal of
fixed assets
935820.00
Within 1
year
1.47%
Guangdong Guanghui Expressway
Co. Ltd.
Deposit 560000.00
Over 5
years
0.88%
Total -- 54546633.31 -- 85.77% 51535736.09
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
5. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
（1）Category of Inventory
In RMB
Items
Closing book balance Opening book balance
Book balance
Provision for
inventory
impairment
Book value Book balance
Provision for
inventory
impairment
Book value
Raw materials 111683.22 111683.22 111683.22 111683.22
Total 111683.22 111683.22 111683.22 111683.22
(2) Inventory depreciation reserve
None
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
（4）Description of amortization amount of contract performance cost in the current period
None
6.Contract assets
In RMB
Items
Year-end balance Year-beginning balance
Book
balance
Bad debt
provision
Book value
Book
balance
Bad debt
provision
Book value
Quality guarantee 5246547.77 5246547.77 5095277.77 5095277.77
Total 5246547.77 5246547.77 5095277.77 5095277.77
Amount and reason of material change of book value of contract assets in the current period::None
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of contract assets is accrued according to the general model of
expected credit loss:
Provision for impairment of contract assets in the current period
□ Applicable √Not applicable
None
7.Non-current asset due within 1 year
In RMB
Items
Year-end balance Year-beginning balance
Pre-payment of business tax before
replacing business tax with VAT
51745.32 51745.32
Total 51745.32 51745.32
Important creditor's rights Investment/other creditor's rights investment:
8.Other current assets
I n RMB
Items
Year-end balance Year-beginning balance
Income tax to be deducted 204007.47
Income tax to be certified 106665.85
Total 310673.32
9. Long-term equity investment
In RMB
Investees Opening balance
Increase/decrease
Closing balance
Closing
balance of
impairment
provision
Additional
investment
Adjustment of
other
comprehensiv
e income
Changes of
other equity
Cash bonus or
profits
announced to
issue
Withdra
wal of
impairme
nt
provision
Othe
r
I. Joint venture
Guangdong
Guanghui
Expressway Co.
Ltd.
1048473573.52 43495261.34 3954180.00 24715954.57 1071207060.29
Subtotal 1048473573.52 43495261.34 3954180.00 24715954.57 1071207060.29
2. Affiliated Company
Guangdong
Jiangzhong
Expressway Co..
Ltd.
179491516.98 -2474550.29 177016966.69
Ganzhou Gankang
Expressway Co.
Ltd.
213672650.90 -18334081.49 195338569.41
Ganzhou Kangda
Expressway Co.
234733526.86 5693920.94 240427447.80
Investees Opening balance
Increase/decrease
Closing balance
Closing
balance of
impairment
provision
Additional
investment
Adjustment of
other
comprehensiv
e income
Changes of
other equity
Cash bonus or
profits
announced to
issue
Withdra
wal of
impairme
nt
provision
Othe
r
Ltd.Shenzhen Huiyan
Expressway Co.
Ltd.
262682427.44 916998.38 263599425.82
Guoyuan Securities
Co. Ltd.
793926807.52 14629008.65 2533278.11 11940297.90 799148796.38
Guangdong Yueke
Technology Petty
Loan Co. Ltd.
214637335.45 4318117.99 218955453.44
Hunan Lianzhi
Technology Co. Ltd.
80000000.00 80000000.00
Zhaoqing Yuezhao
Highway Co. Ltd.
308122059.69 7608675.97 49750000.00 265980735.66
Subtotal 2207266324.84 80000000.00 12358090.15 2533278.11 61690297.90 2240467395.20
Total 3255739898.36 80000000.00 55853351.49 2533278.11 3954180.00 86406252.47 3311674455.49
Other note
10.Other Equity instrument investment
In RMB
Items Closing balance Opening balance
Guangle Expressway Co. Ltd. 748348301.73 748348301.73
Guangdong Radio and Television Networks investment
No.1 Limited partnership enterprise
50000000.00 50000000.00
China Everbright Bank Co. Ltd. 842212699.52 1037474303.04
Huaxia Securities Co. Ltd.（Notes1）
Huazheng Asset Management Co. Ltd.（Notes2）
Kunlun Securities Co. Ltd.（Notes3）
Total 1640561001.25 1835822604.77
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
Items
Dividend
income
recognized
Cumulative
gain
Cumulative
loss
Amount of
other
consolidated
income
transferred to
retained
earnings
Reasons for
designation as
measured at fair
value and
changes included
in other
comprehensive
income
Reasons for other
consolidated income
transferred to retained
earnings
Guangle Expressway Co.Ltd.Non-transactional
purpose for
shareholding
Guangdong Radio and
Television Networks
investment No.1 Limited
partnership enterprise
440655.02 7802784.15
Non-transactional
purpose for
shareholding
China Everbright Bank Co.
Ltd.
50344558.02 324651822.72
Non-transactional
purpose for
shareholding
Huaxia Securities Co. Ltd. 5400000.00
Non-transactional
purpose for
shareholding
Huazheng Asset
Management Co. Ltd.
1620000.00
Non-transactional
purpose for
shareholding
Kunlun Securities Co. Ltd. 30000000.00 Non-transactional
purpose for
shareholding
Other note：
Note 1: The owner's equity of Huaxia Securities Co. Ltd. was negative and it entered liquidation procedure in December 2005.The Company made full provision for impairment in respect of this long-term equity investment of RMB 5.4 million.Note 2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co. Ltd. As the June
30 2005 the amount of net assets of Huazheng Asset Management Co. Ltd. in book was 279.132 million yuan and the appraised
value was - 2299.5486 million yuan On October 14 2005 Jianyin CITIC Asset Management Co. Ltd. issued the Letter of
Soliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset Management Co. Ltd. was willing to pay the
price of not more than 42 million yuanto acquire 100% equity of Huazheng Asset Management Co. Ltd. and solicited the
Company's opinions. The Company replied on December 5 2005 abandoning the preemptive right under the same conditions.
The Company made provision of 1.3932 million yuan for impairment in respect of this long-term equity investment of 1.62
million yuan.Note 3.The owner's equity of Kunlun Securities Co. Ltd. was negative and it entered liquidation procedure in October 2005. A
wholly owned subsidiary of Guangdong Expressway Technology Investment Co. Ltd. Will invest
Kunlun Securities Co. Ltd.'s full provision for impairment of 30 million yuan.
11. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Items
Houses and
buildings
Land use right
Construction in
progress
Total
I. Original value
1.Opening balance 12664698.25 2971831.10 15636529.35
2.Increased amount of the period
（1）Outsourcing
(2)Inventory Fixed assets and Construction
project into
(3) )Increased of Enterprise consolidation
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 12664698.25 2971831.10 15636529.35
Items
Houses and
buildings
Land use right
Construction in
progress
Total
II.Accumulated depreciation accumulated
amortization
1.Opening balance 10547091.78 1757937.20 12305028.98
2.Increased amount of the period 73774.56 36784.68 110559.24
(1)Withdrawal or amortization 73774.56 36784.68 110559.24
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 10620866.34 1794721.88 12415588.22
III. Impairment provision
1.Opening balance
2.Increased amount of the period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance
IV. Book value
1.Closing book value 2043831.91 1177109.22 3220941.13
2.Opening book 2117606.47 1213893.90 3331500.37
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
Items Book balance Reason
Houses and Building 1366521.30
Transportation and other ancillary
facilities Not accreditation
Other note
12. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 8709189223.95 8925700473.65
Total 8709189223.95 8925700473.65
(1) List of fixed assets
In RMB
Items
Guangfo
Expressway
Fokai Expressway
Jingzhu
Expressway
Guangzhu
section
House and
buildings
Machinery
equipment
Transportation
equipment
Electricity
equipment and
other
Total
I. Original price
1.Opening balance 1460270190.66 10935058609.66 4816156616.45 362192894.64 260560603.98 48644014.84 658113290.64 18540996220.87
2.Increased amount of the
period
774778.00 165231518.56 166006296.56
（1）Purchase 584179.63 584179.63
（2）Transfer of project under
construction
774778.00 164647338.93 165422116.93
(3)Increased of Enterprise
consolidation
3.Decreased amount of the
period
16205.00 864000.00 3321533.40 4201738.40
（1）Disposal or scrap 16205.00 864000.00 3321533.40 4201738.40
（2）Government subsidy offset
4.Closing balance 1460270190.66 10935058609.66 4816156616.45 362967672.64 260544398.98 47780014.84 820023275.80 18702800779.03
II. Accumulated depreciation
1.Opening balance 1460270190.66 4494205215.58 2841639585.51 252883785.76 84814297.41 39174447.40 435070029.06 9608057551.38
Items
Guangfo
Expressway
Fokai Expressway
Jingzhu
Expressway
Guangzhu
section
House and
buildings
Machinery
equipment
Transportation
equipment
Electricity
equipment and
other
Total
2.Increased amount of the
period
252003690.67 69596901.68 6505633.72 15628796.47 1231400.55 37350892.55 382317315.64
（1）Withdrawal 252003690.67 69596901.68 6505633.72 15628796.47 1231400.55 37350892.55 382317315.64
3.Decreased amount of the
period
15556.80 777600.00 3208350.98 4001507.78
（1）Disposal or scrap 15556.80 777600.00 3208350.98 4001507.78
4.Closing balance 1460270190.66 4746208906.25 2911236487.19 259389419.48 100427537.08 39628247.95 469212570.63 9986373359.24
II. Accumulated depreciation
1.Opening balance 7238195.84 7238195.84
2.Increased amount of the
period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposal or scrap
4.Closing balance 7238195.84 7238195.84
Items
Guangfo
Expressway
Fokai Expressway
Jingzhu
Expressway
Guangzhu
section
House and
buildings
Machinery
equipment
Transportation
equipment
Electricity
equipment and
other
Total
IV. Book value
1.Closing book value 6188849703.41 1904920129.26 103578253.16 160116861.90 8151766.89 343572509.33 8709189223.95
2.Opening book 6440853394.08 1974517030.94 109309108.88 175746306.57 9469567.44 215805065.74 8925700473.65
⑵Temporarily idle fixed assets
None
（3）Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Transportation and other ancillary
facilities
86957266.64 Not accreditation
Other note
13. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 169594866.22 229098299.48
Total 169594866.22 229098299.48
（1）Project under construction
In RMB
Items
Year-end balance Year-beginning balance
Book balance Provision
for
devaluati
on
Book value Book balance Prov
ision
for
deva
luati
on
Book value
Cancellation of Expressway
Provincial Toll Station Project
66534825.51 66534825.51
Reconstruction and Expansion of
Sanbao to Shuikou
20812651.91
20812651.
91
15943015.38 15943015.38
Bridge deck pavement project of
hailong Bridge
1382928.49
1382928.4
9
1382928.49 1382928.49
Urban toll station project 9013081.45
9013081.4
5
9013081.45 9013081.45
Pavement Treatment Project 47513858.97
47513858.
97
46573355.85 46573355.85
Bridge Deck Treatment Project of
Dayong Viaduct
69200820.99
69200820.
99
67204790.39 67204790.39
Improvement Project of Drainage
Pipes Across River Reach of Bridge
5933146.00
5933146.0
0
5933146.00 5933146.00
Items
Year-end balance Year-beginning balance
Book balance Provision
for
devaluati
on
Book value Book balance Prov
ision
for
deva
luati
on
Book value
Bridge Drainage Improvement
Project Across Centralized Drinking
Water Sources
7000000.00
7000000.0
0
7000000.00 7000000.00
Monitoring Hall Migration Project 7167718.98
7167718.9
8
7167718.98 7167718.98
Odd project 1570659.43
1570659.4
3
2345437.43 2345437.43
Total 169594866.22
16959486
6.22
229098299.48 229098299.48
(2) Changes of significant construction in progress
In RMB
Name of project Budget
Opening
balance
Increase
Transferred to
fixed assets
Other
decrease
End balance
Proportion
%
Project
process
Capitalization
of
interest
Including:
capitalization
of
interest
this
period
Capitaliza
tion of
interest
rate (%)
Sourc
e
of
fundin
g
Cancellation of
Expressway
Provincial Toll
Station Project
178291911.00 66534825.51 98112513.42 164647338.93 93.59% 100.00% Others
Reconstruction
and Expansion of
Sanbao to
Shuikou
3426210000.00 15943015.38 4869636.53 20812651.91 75.51% 75.51% 72779504.82 Others
Pavement
Treatment Project
186809600.00 46573355.85 940503.12 47513858.97 25.43% 25.43% 1118693.61 940503.12 4.31% Others
Bridge Deck
Treatment Project
of Dayong
Viaduct
122940000.00 67204790.39 1996030.60 69200820.99 56.29% 56.29% 2683619.99 1996030.60 4.31% Others
Total 3914251511.00 196255987.13 105918683.67 164647338.93 137527331.87 -- -- 76581818.42 2936533.72 --
(3)Provision for impairment of construction projects in the current period
None
14. Intangible assets
(1) List of intangible assets
In RMB
Items Land use right Patent right Non-patent right Software Total
I. Original price
1.Opening balance 1311658.00 31328839.81 32640497.81
2.Increased amount of the
period
62517.57 62517.57
(1) Purchase 62517.57 62517.57
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the
period
（1）Disposal
4.Closing balance 1311658.00 31391357.38 32703015.38
II.Accumulated amortization
1.Opening balance 1311658.00 24934944.64 26246602.64
2.Increased amount of the
period
1062165.61 1062165.61
(1) Withdrawal 1062165.61 1062165.61
3.Decreased amount of the
period
（1）Disposal
Items Land use right Patent right Non-patent right Software Total
4.Closing balance 1311658.00 25997110.25 27308768.25
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
(1) Withdrawal
3.Decreased amount of the
period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 5394247.13 5394247.13
2.Opening book value 6393895.17 6393895.17
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of
the balance of intangible assets
⑵Details of Land use right failed to accomplish certification of property
None
15. Long-term amortize expenses
In RMB
Items
Balance in
year-begin
Increase in this
period
Amortized
expenses
Other loss
Balance in
year-end
Rental fee for
plant
1114764.44 53508.72 1061255.72
Total 1114764.44 53508.72 1061255.72
16. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Items Balance in year-end Balance Year-beginning
Deductible temporary
difference
Deferred income tax
assets
Deductible temporary
difference
Deferred income tax
assets
Assets impairment
provisions
7238195.84 1809548.96 7238195.84 1809548.96
Deductible loss 1120134827.88 280033706.98 1054468552.04 263617138.01
Amortization of
intangible assets
16370675.77 4092668.94 100250984.24 25062746.06
Asset valuation
appreciation
346250638.18 86562659.55 380018692.41 95004673.10
Total 1489994337.67 372498584.43 1541976424.53 385494106.13
(2) Deferred income tax liabilities had not been off-set
In RMB
Items
Balance in year-end Balance Year-beginning
Deductible temporary
difference
Deferred income tax
liabilities
Deductible temporary
difference
Deferred income tax
liabilities
Changes in the fair
value of other equity
instruments
324651822.72 81162955.68 519913426.24 129978356.56
Deductible temporary
differences in the
formation of asset
impairment
444929907.64 111232476.91 433902478.92 108475619.73
Total 769581730.36 192395432.59 953815905.16 238453976.29
（3）Details of unrecognized deferred tax assets
In RMB
Items Balance in year-end Balance Year-beginning
Deductible loss 9751378.66 8013102.87
Assets impairment provisions 90176625.37 89939941.56
Cost of outstanding invoices 1941115.68
Total 99928004.03 99894160.11
（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance Year-beginning Remark
2020
2021
2022 1133109.04 1133109.04
2023 3210991.23 3210991.23
2024 3669002.60 3669002.60
2025 1738275.79
Total 9751378.66 8013102.87 --
Other note：
17. Other Non-current assets
In RMB
Items
Balance in year-end Balance Year-beginning
Book balance Provision
for
devaluatio
n
Book value Book balance Provision
for
devaluatio
n
Book value
Prepaid fixed assets
engineering fees
34482614.47 34482614.47 50442297.97 50442297.97
Prepaid business tax 492900.42 492900.42 518773.08 518773.08
Less：Part due within 1
year
-51745.32 -51745.32 -51745.32 -51745.32
Total 34923769.57 34923769.57 50909325.73 50909325.73
Other note：
18.Account payable
（1） List of account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 162774472.04 177823526.35
1-2 years（including2 years） 34995823.93 11710703.48
2-3 years（including 3 years） 8648550.00 2468424.00
Over 3 years 98394394.48 98655080.48
Total 304813240.45 290657734.31
（2）Significant payable aging more than 1 year
In RMB
Items Balance in year-end Reason
Foshan Land and resources Bureau. 30507598.21 Unsettled
Guang Zhongjiang Expressway project
Management Dept
28000000.00 Unsettled
Heshan Land and resources Bureau 27186893.60 Unsettled
Guangdong Highway Construction Co.Ltd.
25630651.00 Unsettled
Guangdong Provincial Freeway Co.Ltd. 8746491.18 Unsettled
Total 120071633.99 --
19. Prepayment received
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 806015.98 1865984.63
1-2 years（Including 2 years）
2-3 years（Including 3 years）
Over 3 years 10393700.37 10951499.43
Total 11199716.35 12817484.06
(2) Significant advance from customers aging over one year
In RMB
Items Balance in year-end Unpaid/Uncarry over reason
Guangzhou Huanlong Expressway Co.Ltd.
8383879.82
The Rental is not in the settlement
period
Guanghdong Xinle Technology
Development Co. Ltd.
1537523.81
The Rental is not in the settlement
period
Total 9921403.63 --
20. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning
balance
Increase in the
current period
Decrease in the
current period
Year-end balance
I. Short-term compensation 14822524.70 128500655.48 124544037.99 18779142.19
II.Post-employment benefits - def
ined contribution plans
11175489.25 9764863.47 1410625.78
III. Dismissal benefits 80117.63 80117.63
Total 14822524.70 139756262.36 134389019.09 20189767.97
（2）Short-term Remuneration
In RMB
Items Year-beginning
balance
Increase in the
current period
Decrease in the
current period
Year-end balance
1.Wages bonuses allowances and
subsidies
642463.49 94813014.04 90952413.30 4503064.23
2.Employee welfare 9303364.42 9211545.43 91818.99
3. Social insurance premiums 6471924.55 6468331.84 3592.71
Including ：Medical insurance 3725818.90 3722909.27 2909.63
Work injury insurance 19532.24 19532.24
Maternity insurance 873658.04 872974.96 683.08
Other 1852915.37 1852915.37
4.Public reserves for housing 14000113.00 13989322.00 10791.00
5.Union funds and staff education
fee
12865407.64 3381179.63 3284605.58 12961981.69
8.Other 1314653.57 531059.84 637819.84 1207893.57
Total 14822524.70 128500655.48 124544037.99 18779142.19
（3）Defined contribution plans listed
In RMB
Items
Balance
Year-beginning
Increase in this period Payable in this period Balance in year-end
1. Basic old-age
insurance premiums
2003693.48 2003693.48
2.Unemployment
insurance
56693.56 56693.56
3.Enterprise annuity
payment
9115102.21 7704476.43 1410625.78
Total 11175489.25 9764863.47 1410625.78
Other notes：
21. Tax Payable
In RMB
Items Balance in year-end Balance Year-beginning
VAT 12245948.76 14195480.90
Enterprise Income tax
23310669.09 65145885.17
Individual Income tax 108161.34 2866768.16
City Construction tax 480762.03 957991.34
Education subjoin 234125.43 431482.48
Locality Education subjoin 142025.15 273333.04
Land use tax 606620.40
Property tax 680454.25 17061.15
Stamp tax 44687.72 218722.91
Construction costs for cultural
undertaking
31200.00
Other 119661.79
Total 37853454.17 84257586.94
Other note：
22.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend payable 954302889.90 20020119.31
Other account payable 471530924.09 606160467.61
Total 1425833813.99 626180586.92
（1）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 954302889.90 20020119.31
Total 954302889.90 20020119.31
Note: Including significant unpaid dividends payable over one year the unpaid reason shall be disclosed:
Final dividend payable 19998911.82yuan for more than a year in unpaid dividends to shareholders over the year w
as mainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank did
not share reform of shareholders to receive dividends or provide application to receive dividends the bank informa
tion is incorrect resulting in failure to pay a dividend or refund.
（2）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Year-end balance Year-Beginning balance
Quality guarantee fund 42938220.28 55789027.50
Borrowing 182161406.25 184505512.50
Provisional estimate of project cost 199761484.19 305588291.39
Other 46669813.37 60277636.22
Total 471530924.09 606160467.61
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Yayao to Xiebian extension 12499448.48 Outstanding
CCCC First Harbor Engineering Co.
Ltd.
8339501.22 Project Quality guaranteesconstract liquidated damages
Poly Changda Highway Engineering
Co. Ltd.
4103645.00 Contract liquidated damages project withholding
Guangdong Longda Superhighway
Maintenance Co. Ltd.
3184244.10
Project Quality guarantees contract liquidated damages
Wage margin for migrant workers
China Railway 18 Bureau Group Co.
Ltd.
2501500.00
Contract liquidated damages Wage margin for migrant
workers
Total 30628338.80 --
23.Contract liabilities
（1）Contract liabilities
In RMB
Items Balance year-end Year-beginning balance
Advances on sale 108100.88 2787610.63
Less：Other non-current liabilities
Total 108100.88 2787610.63
24. Non-current liabilities due within 1 year
In RMB
Long-term loans due within 1 year Balance year-end Year-beginning balance
Long-term payable due within 1 year 62060000.00 765445000.00
Interest payable due within 1 year 732075.47 256603.77
Total 96380696.28 30160354.30
Long-term loans due within 1 year 159172771.75 795861958.07
Other note：
25.Other current liabilities
In RMB
Items Balance year-end Year-beginning balance
Tax to be rewritten 1603872.74 189628.17
Total 1603872.74 189628.17
26. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loan 507365000.00 447365000.00
Guaranteed loan 375000000.00
Credit loan 4259587500.00 4583505000.00
Long-term loans due within one year -62060000.00 -765445000.00
Total 4704892500.00 4640425000.00
Other notes including interest rate range：
The Pledge loan rate is 4.15%-4.41%; the guaranteed loan interest rate is 5.6%; the credit interest rate is
3.95%-4.41%.
27.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 1426014144.87 678124972.89
Total 1426014144.87 678124972.89
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability
In RMB
Name of the
bond
Book value Issue date Period Issue amount
Opening
balance
The current
issue
Withdraw
interest at
par
Overflow
discount amount
Pay in
current
period
Closing balance
19
Guangdong
Expressway
MTN001
680000000.00 2019.2.27 2019.3.1-2024.3.1 680000000.00 678124972.89 -223241.92 678348214.81
20
Guangdong
Expressway
MTN001
750000000.00 2020.3.13 2020.3.17-2025.3.17 750000000.00 750000000.00 2334069.94 747665930.06
Total -- -- -- 1430000000.00 678124972.89 750000000.00 2110828.02 1426014144.87
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
28. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 40406172.36 39369379.91
Total 40406172.36 39369379.91
(1) Long-term payable listed by nature of the account
In RMB
Items Balance year-end Year-beginning balance
Non-operating asset payable 2022210.11 2022210.11
Entrust loans 36000000.00 36000000.00
Medium term bill underwriting fee 3116037.72 1603773.57
Less：Part due within 1 year 732075.47 256603.77
Total 40406172.36 39369379.91
Other note：
29. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Cause
Government
subsidy
37916900.00 5637075.19 32279824.81
Total 37916900.00 5637075.19 32279824.81 --
Details of government subsidies：
In RMB
Items
Begi
nnin
g of
term
New subsidy
in current
period
Amount
transferred to
non-operational
income
Other income
recorded in
the current
period
Amount of
cost
deducted in
the current
period
Other
chang
es
End of term
Asset-related or
income-related
Cancellation of
Expressway Provincial
35416900.00 3137075.19 32279824.81 Asset-related
Items
Begi
nnin
g of
term
New subsidy
in current
period
Amount
transferred to
non-operational
income
Other income
recorded in
the current
period
Amount of
cost
deducted in
the current
period
Other
chang
es
End of term
Asset-related or
income-related
Toll Station Project
Financial discount 2500000.00 2500000.00
Related to
income
30. Stock capital
In RMB
Changed（+，-）
Balance
Year-beginning Issuance of
new share
Bonus
shares
Capitalization
of public
reserve
Other Subtotal
Balance in
year-end
Total of
capital
shares
2090806126.00 2090806126.00
31. Capital reserves
In RMB
Items Year-beginning
balance
Increase in the current
period
Decrease in the current
period
Year-end balance
Share premium 2508408342.99 2508408342.99
Other capital reserves 54162122.32 3954180.00 58116302.32
Total 2562570465.31 3954180.00 2566524645.31
- The situation of change in the current capital reserve is as follows:
The capital reserve in this period was increased 3954180.00 yuan due to the change of the owner's equity of the
joint-stock company
32. Other comprehensive income
In RMB
Items
Year-beginning
balance
Amount of current period
Year-end
balance
Amount incurred
before income tax
Less：Amount
transferred into
profit and loss
in the current
period that
recognied into
other
comprehensive
income in prior
period
Less：Prior period
included in other
composite income
transfer to
retained income in
the current period
Less：Income
tax expenses
After-tax
attribute to the
parent company
After-tax
attribute to
minority
shareholder
1.Other comprehensive income will be
reclassified into income or loss in the future
389935069.68 -195261603.52 -48815400.88 -146446202.64 243488867.04
Including: Share of other comprehensive
income of the investee that cannot be
transferred to profit or loss accounted
for using the equity method
389935069.68 -195261603.52 -48815400.88 -146446202.64 243488867.04
2.Other comprehensive income reclassifiable
to profit or loss in subsequent periods
-7741724.78 2533278.11 2533278.11 -5208446.67
Including：Share of other comprehensive
income of the investee that cannot be
transferred to profit or loss accounted for
using the equity method
-7741724.78 2533278.11 2533278.11 -5208446.67
Total of other comprehensive income 382193344.90 -192728325.41 -48815400.88 -143912924.53 238280420.37
33. Surplus reserve
In RMB
Items Year-beginning
balance
Increase in the current
period
Decrease in the current
period
Year-end balance
Statutory surplus
reserve
910425068.90 910425068.90
Total 910425068.90 910425068.90
Note
34. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in last
period end
3877431844.64 3938609136.59
Adjust the total undistributed profits at the
beginning of the period
-9749843.30
After adjustments: Retained profits at the period
beginning
3877431844.64 3928859293.29
Add：Net profit belonging to the owner of the
parent company
-5830257.18 1258628101.71
Less: Statutory surplus reserve 135022507.55
Common stock dividend payable 882320185.17 1175033042.81
Retained profit at the end of this term 2989281402.29 3877431844.64
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
35.Operation income and operation cost
In RMB
Items
Amount of this period Amount of last period
Income Cost Income Cost
Main operation 642155230.52 514556931.18 1465140817.31 536808262.05
Other operation 18743731.27 9618193.88 18532427.90 12815548.44
Total 660898961.79 524175125.06 1483673245.21 549623810.49
36. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 1233837.65 2826207.50
Education surcharge 582429.79 1334286.59
Property tax 712301.65 653603.50
Land use tax 606620.40 607742.40
Vehicle use tax 27905.63 27413.99
Stamp tax 96237.31 151645.56
Business tax 25872.66 25872.66
Locality Education surcharge 388598.88 889523.37
Other 40728.40
Total 3673803.97 6557023.97
Other note
37. Administrative expenses
In RMB
Items Amount of this period Amount of last period
Wage 47810529.06 51876703.42
Depreciation and Amortization 4677507.48 5426970.90
Low consumables amortization 234921.36 270716.05
Travel expenses 83119.53 425060.93
Office expenses 2457800.02 4046634.57
Leased expenses 5183189.17 5621607.68
The fee for hiring agency 3113424.31 4459697.91
Consultation expenses 63000.00 1186300.00
Listing fee 11320.75 11320.75
Information cost and maintenance fee 247597.56 180975.14
Other 4108510.24 3469223.12
Total 67990919.48 76975210.47
Other note：
38.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 131774768.90 115040857.71
Deposit interest income（-） -14760756.18 -15761707.69
Exchange Income and loss（Gain-） 1590432.88
Bank commission charge 65706.01 904728.33
Other 1534061.56 1755451.17
Total 118613780.29 103529762.40
39.Other gains
In RMB
Items Amount of this period Amount of last period
Government subsidy- Cancellation of
Expressway Provincial Toll Station
Project
3137075.19
Government subsidy- Stable job
subsidies
398471.22
Return of personal tax handing fee 173223.75 40043.40
Maternity allowance 149747.43 377218.29
Input tax plus deduction 12771.61 2965.93
Total 3871289.20 420227.62
40. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity 55853351.49 237712998.09
method
Dividends earned during the holding period on
investments in other equity instrument
50785213.04 38528868.23
Total 106638564.53 276241866.32
41. Credit impairment losses
In RMB
Items Amount of this period Amount of last period
Impairment losses on accounts
receivable
-236683.81
Total -236683.81
Other note：
42.Assets disposal income
In RMB
Source Amount of this period Amount of last period
Non-current assets disposal gains 13129094.29
Including：Income from disposal of
Fixed assets
Income from disposal of Intangible assets 13129094.29
Other 4.37
Total 4.37 13129094.29
43.Non-Operation income
In RMB
Items Amount of this period Amount of last period
Recorded in the amount of
the non-recurring gains and
losses
Charges 1493.01 14676.65 1493.01
Relocation compensation
income
1549865.12 1549865.12
Insurance indemnity income 1824272.37 133339.72 1824272.37
Road property claim income 416820.42 543754.07 416820.42
Other income 285226.03 43589.32 285226.03
Total 4077676.95 735359.76 4077676.95
- Government subsidy reckoned into current gains/losses: None
44. Non-Operation expense
In RMB
Items
Amount of current
period
Amount of previous period The amount of non-operating gains &
losses
Loss & abandonment of
non-current assets
184878.43 2591350.52 184878.43
Fine 25472.76 207.98 25472.76
Road property claim
expenses
1411624.28 1633084.45 1411624.28
Other income( 570033.01 6765.00 570033.01
Total 2192008.48 4231407.95 2192008.48
45. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 27487772.16 154541370.84
Deferred income tax expense 15752378.88 35155403.21
Total 43240151.04 189696774.05
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total 58604175.75
Current income tax expense accounted by tax and relevant
regulations
14651043.94
Influence of income tax before adjustment 19910.76
Influence of non taxable income -27333746.18
Impact of non-deductible costs expenses and losses 4097052.91
The current period does not affect the deferred tax assets
recognized deductible temporary differences or deductible loss
-744912.67
Other 52550802.28
Income tax expense 43240151.04
46.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Interest income 14760756.18 15761707.69
Unit current account 22144584.27 9857010.59
Cancellation of Expressway Provincial Toll Station
Project
35416900.00
Total 72322240.45 25618718.28
（2）Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 15271520.58 16677364.01
Network received toll income 6999980.83
Unit current account 5349446.91 14244441.25
Total 20620967.49 37921786.09
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Medium-term bill issuance fee 1122177.00 791384.00
Total 1122177.00 791384.00
47. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information
Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
operating activities
-- --
Supplement Information
Amount of current period Amount of previous period
Net profit 15364024.71 843585803.87
Depreciation of fixed assets oil and gas
assets and consumable biological assets
382391090.20 402575984.69
Amortization of intangible assets 1098950.29 1184929.43
Amortization of Long-term deferred
expenses
53508.72 53508.72
Loss on disposal of fixed assets intangible
assets and other long-term deferred assets
-13129094.29
Fixed assets scrap loss 184878.43 2591350.52
Financial cost 134274768.90 116631290.59
Loss on investment -106638564.53 -276241866.32
Decrease of deferred income tax assets 12995521.70 44118004.31
Increased of deferred income tax liabilities 2756857.18 -8962601.10
Decrease of inventories -29124.58
Decease of operating receivables -37061244.28 -16566898.76
Increased of operating Payable 12249629.21 -45000189.85
Other 236683.81
Net cash flows arising from operating
activities
417906104.34 1050811097.23
II. Significant investment and financing
activities that without cash flows:
-- --
3 ． Movement of cash and cash
equivalents：
-- --
Ending balance of cash 3058275542.46 2036803751.05
Less: Beginning balance of cash
equivalents
2816699694.50 2123303796.32
Net increase of cash and cash equivalents 241575847.96 -86500045.27
（2）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
Items Balance in year-end Balance in year-Beginning
Cash
3058275542.46 2816699694.50
Of which: Cash in stock
92943.37 20587.32
Bank savings could be used at any time 3057665122.31 2816163426.65
Other monetary capital could be used at
any time
517476.78 515680.53
Balance of cash and cash equivalents at
the period end
3058275542.46 2816699694.50
Other note：
48. The assets with the ownership or use right restricted
In RMB
Items Book value at the end of the period Restricted reason
Monetary fund 1221200.00
Land reclamation funds in the fund
escrow account
Total 1221200.00 --
Other note：
As of June 30 2020 the Company's subsidiary Jingzhu Expressway Guangzhu Section Co. Ltd borrowed
507365000.00 yuan from Wuyang Sub-branch of Industrial and Commercial Bank of China (including
26335000.00 yuan in non-current liabilities due within one year and 481030000.00 yuan in long-term loans) and
provided a pledge guarantee of 19.2% of the project's toll interest (the right to collect tolls for vehicles traveling
on the Guangzhu section of Jingzhu Expressway and the revenue generated by owning such right).VIII. Changes of merge scope
None
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Name of Subsidiary
Main
Places
of
Operati
on
Regis
tratio
n
Place
Nature of Business
Shareholding Ratio
(%)
Obtaining Method
direct indirect
Guangfo Expressway Co. Ltd. Guangz Guan
Expressway
Management
75.00%
Under the same
control business
hou gzhou
combination
Guangdong Expressway Technology
Investment Co. Ltd.Guangz
hou
Guan
gzhou
Investment in
technical industries
and provision of
relevant
100.00% Investment
Guangzhuo Guangzhu Traffic
Investment Management Co. Ltd.Guangz
hou
Guan
gzhou
Investment
management
100.00%
Under the same
control business
combination
Jingzhu Expressway Guangzhu
Section Co.Ltd.Zhongs
han
Guan
gzhou
Expressway
Management
20.00% 55.00%
Under the same
control business
combination
Yuegao Capital
Investment(Hengqin)Co. Ltd.Guangz
hou
Zhuh
ai
Investment
management
100.00% Investment
Notes: holding proportion in subsidiary different from voting proportion:None
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee:None
Significant structure entities and controlling basis in the scope of combination:None
Basis of determine whether the Company is the agent or the principal: None
Other notes：
Guangzhou Guangzhu Traffic Investment Management Co. Ltd. holds 55% equity in Guangzhu Section Co.Ltd. of Jingzhu Expressway.
(2) Important Non-wholly-owned Subsidiary
In RMB
Name of Subsidiary
Shareholding
Ratio of
Minority
Shareholders
(%)
Profit or Loss Owned
by the Minority
Shareholders in the
Current Period
Dividends Distributed
to the Minority
Shareholders in the
Current Period
Equity Balance of the
Minority Shareholders
in the End of the
Period
Guangfo Expressway Co. Ltd. 25.00% 11076201.29 148856273.05
Jingzhu Expressway Guangzhu
Section Co.Ltd.
25.00% 10118080.60 126983792.91 172524264.07
Holding proportion of minority shareholder in subsidiary different from voting proportion
None
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Name
Year-end balance Year-beginning balance
Current
assets
Non- current
assets
Total assets
Current
Liabilities
Non- current
liabilities
Total liabilities
Current
assets
Non- current
assets
Total assets
Current
Liabilities
Non- current
liabilities
Total
liabilities
Guangfo
Expressway
Co. Ltd.
617279005.
86
61712506.29
678991512.1
5
78285629.0
3
5280790.91 83566419.94
560965221.
56
47173764.91
608138986.4
7
57018699.4
2
57018699.42
Jingzhu
Expressway
Guangzhu
Section
Co.Ltd.
120244803.
02
2212641148.
22
2332885951.
24
520668250.
01
1122120644.
94
1642788894.9
5
301043906.
12
2257506902
.82
2558550808
.94
377916598.
72
1023074304.
71
1400990903
.43
In RMB
Name
Amount of current period Amount of previous period
Business
income
Net profit
Total
Comprehensiv
e income
Cash flows
from operating
activities
Business
income
Net profit
Total
Comprehensive
income
Cash flows from
operating
activities
Guangfo Expressway Co. Ltd. 102043817.63 44304805.16 44304805.16 59016009.03 231359875.86 142527223.05 142527223.05 146829390.44
Jingzhu Expressway Guangzhu
Section Co.Ltd.
232123838.11 40472322.41 40472322.41 136327743.66 613528787.18 285871543.23 285871543.23 390248834.50
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
None
Other note：
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Significant joint venture arrangement or associated enterprise
None
（2）Affect of the transaction on the minority equity and owner's equity attributable to the parent company
None
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Name
Main
operating
place
Registra
tion
place
Business nature
Proportion Accounting
treatment of the
investment of joint
venture or
associated
enterprise
Directly
Indirectl
y
Guangdong Guanghui Expressway Co.Ltd.Guangzhou
Guangdong
Guangz
hou
Guangd
ong
Expressway
Management
30.00% Equity method
Zhaoqing Yuezhao Highway Co. Ltd.Zhaoqing
Guangdong
Zhaoqin
g
Guangd
ong
Expressway
Management
25.00% Equity method
Shenzhen Huiyan Expressway Co. Ltd.Shenzhen
Guangdong
Shenzhe
n
Guangd
ong
Expressway
Management
33.33% Equity method
Guangdong Jiangzhong Expressway
Co. Ltd.
Zhongshan
Guangdong
Guangz
houGu
angdon
g
Expressway
Management
15.00% Equity method
Ganzhou kangda Expressway Co. Ltd. Gangzhou Gangzh Expressway 30.00% Equity method
Name
Main
operating
place
Registra
tion
place
Business nature
Proportion Accounting
treatment of the
investment of joint
venture or
associated
enterprise
Directly
Indirectl
y
Jiangxi ou
Jiangxi
Management
Ganzhou Gankang Expressway Co.Ltd.Gangzhou
Jiangxi
Gangzh
ou
Jiangxi
Expressway
Management
30.00% Equity method
Guangdong Yueke Technology Petty
Loan Co. Ltd.Guangzhou
Guangdong
Guangz
hou
Guangd
ong
Hande all kinds of
small loans
20.00% Equity method
Guangyuan Securities Co. Ltd.Hefei
Anhui
Hefei
Anhui
Security business 2.37% Equity method
Hunan Lianzhi Technology Co. Ltd. Changsha
Changsh
a
Research and
experimental
development
11.45% Equity method
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
None
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
Guangdong Jiangzhong Expressway Co. Ltd. Guangyuan Securities Co. Ltd..and Hunan Lianzhi Technology Co.Ltd. holds 20% of the voting rights but has the power to participate in making decisions on their financial and ope
rating decisions and therefore deemed to be able to exert significant influence over the investee.
(2) Main financial information of significant joint venture
In RMB
Year-end balance/ Amount of current
period
Year-beginning balance/ Amount of
previous period
Guangdong Guanghui Expressway Co.Ltd.Guangdong Guanghui Expressway Co.Ltd.
Current assets 894836795.76 676535557.27
Including：Cash and cash equivalent 434237396.95 236277469.65
Non-current assets 3407727377.88 3551486914.85
Total assets 4302564173.64 4228022472.12
Current liabilities 246407371.86 212427396.61
Non-current liabilities 485466600.82 520683163.79
Total liabilities 731873972.68 733110560.40
Attributable to shareholders of the parent
company
3570690200.96 3494911911.72
Share of net assets calculated by stake 1071207060.29 1048473573.52
Book value of equity investment in joint
ventures
1071207060.29 1048473573.52
Operating income 457060461.67 917898192.73
Financial expenses 4947161.57 10890126.55
Income tax expenses 50887862.70 159573250.38
Net profit 144984204.47 478273173.41
Total comprehensive income 144984204.47 478273173.41
Dividends received from joint ventures
this year
24715954.57 84638655.14
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of current
period
Year-beginning balance/ Amount of
previous period
Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.
Current assets 45654244848.74 57918624287.41
Non-current assets 42446606690.61 26015472537.63
Total assets 88100851539.35 83934096825.04
Current liabilities 47226615144.21 46206352399.19
Non-current Liabilities 15815525400.14 12890023021.47
Total liabilities 63042140544.35 59096375420.66
Minority Shareholders’ Equity 11997171.96 11785075.26
Shareholders’ equity attributable to
shareholders of the parent
25046713823.04 24825936329.12
Pro rata share of the net assets calculated 592422978.36 587200989.50
--Goodwill 206725818.02 206725818.02
The book value of equity investments in
joint ventures
799148796.38 793926807.52
Fair value of equity investment of
associated enterprises with open
quotation
668656682.40 737910410.22
Year-end balance/ Amount of current
period
Year-beginning balance/ Amount of
previous period
Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.
Buinsess incme 2115128481.79 1616521271.21
Net profit 617902373.05 432745658.33
Other comprehensive income 99219704.73 6888669.24
Total comprehensive income 717122077.78 439634327.57
Dividends received from associates duri
ng the year
11940297.90
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of current
period
Year-beginning balance/ Amount of
previous period
Joint venture： -- --
Total amount of the pro rata calculation of
the following items
-- --
Associated enterprise： -- --
Total book value of the investment 1441318598.82 1413339517.32
Total amount of the pro rata calculation of
the following ite--Net profit ms
-- --
-2270918.50 84320844.64
--Total comprehensive income -2270918.50 84320844.64
Other note
As the book value of long-term equity investment in joint ventures and joint ventures other than those listed in (2) and (3) in the
current period and in 2018 and 2019 are not higher than 5% of the total owner's equity of the Company attributable to the parent
company. The company considers that except for the important joint ventures and associated enterprises listed in (2) and (3) other
joint ventures and associated enterprises are non important joint ventures and associates Business.
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
None
(6) The excess loss of joint venture or associated enterprise
None
(7) The unrecognized commitment related to joint venture investment
None
(8) Contingent liabilities related to joint venture or associated enterprise investment
None
4. Significant common operation
None
5. Equity of structure entity not including in the scope of consolidated financial statements
None
X. Risks Related to Financial Instruments
The company has the main financial instruments such as bank deposits receivables and payables investments
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk market risk and liquidity risk. The company’s management shall
manage and monitor these risks and ensure above risks to be controlled within certain scope.(I)The targets and policies of risk management
The target of risk management is to obtain the proper balance between the risk and benefit to reduce the
negative impact that is caused by the risk of the Company to the lowest level and to maximize the benefits of
shareholders and other equity investors. Based on the targets of risk management the basic strategy of the
Company’s risk management is to identify and analyze the risks which are faced by the Company establish
suitable risk tolerance baseline and proceed the risk management and supervise a variety of risks timely and
reliably and control the risks within a limited range.
1.Market risk
（1）Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations generally. Our foreign exchange risk is
mainly related to Hong Kong Dollar. Besides annual distribution of B-share shareholder dividends other major
business activities of our Company are settled in RMB. During the reporting period due to the short credit period
of the Company's income and expenditure related to foreign currency it was not affected by foreign exchange
risk.
（2）Interest rate risk
The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainly
related to floating rate bank borrowings (see this Section VII 23). The Company's policy is to maintain the floating
interest rate of these borrowings and at the same time to reasonably reduce the risk of interest rate fluctuation by
shortening the term of a single loan and specifically agreeing on prepayment terms.
（3）Other price risk
The investments held by the Company are classified as financial assets measured at fair value and whose
changes are included in other comprehensive income (financial assets available for sale on or before December 31
2018) and are measured at fair value on the balance sheet date. Therefore the Company bears the risk of changes
in the securities market.
2.Credit risk
On January 30 2020 the largest credit risk exposure that may cause financial losses of the Company mainly
comes from the loss of financial assets of the Company caused by the failure of the other party to perform its
obligations.In order to reduce credit risk the Company only deals with recognized and reputable customers. In addition
the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequate
bad debt provisions are made for unrecoverable amounts. Consequently the Company's management believes that
the Company's credit risk has been greatly reduced.The Group's working capital is deposited in banks with higher credit rating so the credit risk of working
capital is relatively low.
Financial assets overdue or impaired;
(1) Aging analysis of financial assets with overdue impairment: Not existed
(2) Analysis of financial assets that have suffered single impairment: Refer to "4 Other Receivables" in VII
and "10 Investment in Other Equity Instruments" in VII of this section for details.
3.Liquidity risk
When managing liquidity risks the Company maintains sufficient cash and cash equivalents as deemed by
the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the
loan agreement.XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Items
Closing fair value
Fir value
measurement
items at level 1
Fir value
measurement
items at level 2
Fir value
measurement
items at level 3
Total
I. Consistent fair value
measurement
-- -- -- --
（3）Other equity instrument
investment
842212699.52 842212699.52
Total assets continuously measured
at fair value
842212699.52 842212699.52
II. Non –persistent measure -- -- -- --
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period the company holds shares 235254944 shares of China Everbright Bank
According to the closing price of January 30 2020 of 3.58 yuan the final calculation of fair value was
842212699.52 yuan.
3. Fair value of financial assets and liabilities not measured at fair value
At the end of the period the fair value of financial assets and financial liabilities held by the Company that
are not measured at fair value is as follows:
Items Book value Fair values Remark
Balance at Beginning of
the Year
Ending amount Affiliated
hierarchy
Financial assets not measured at fair
value
Other eqiuty instrument investment 798348301.73 798348301.73 798348301.73
XII. Related parties and related-party transactions
1. Parent company information of the enterprise
Name Registered address Nature
Redistricted
capital
The parent
company of the
Company's
shareholding ratio
The parent
company of the
Company’s vote
ratio
Guangdong
communication
Group Co. Ltd
Guangzhou
Equity
management
traffic
infrastructure
construction and
railway project
operation
26.8 billion yuan 24.56% 50.12%
Notes ：
Guangdong Communication Group Co. Ltd. is the largest shareholder of the Company. legal representative: Deng
Xiaohua. Date of establishment: June 23 2000. As of January 30 2020Registered capital: 26.8 billion yuan. It
is a solely state-owned limited company. Business scope：equity management organization of asset reorganization
and optimized allocation raising funds by means including mortgage transfer of property rights and joint stock
system transformation project investment operation and management traffic infrastructure construction highway
and railway project operation and relevant industries technological development application consultation and
services highway and railway passenger and cargo transport ship industry relevant overseas businesses; The
value-added communication business.The finial control of the Company was State owned assets supervision and Administration Commission of
Guangdong Provincial People's Government.
2.Subsidiaries of the Company
Subsidiaries of this enterprise see Note IX(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note IX-3 Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period or form balance due to related party transactions in previous period:
Name Relation with the Company
Shenzhen Huiyan Expressway Co. Ltd. Associated enterprises of the Company
Zhaoqing Yuezhao Highway Co. Ltd. Associated enterprises of the Company
Ganzhou Kangda Expressway Co. Ltd. Associated enterprises of the Company
Guangdong Jiangzhong Expressway Co. Ltd. Associated enterprises of the Company
Guangdong Yueke Technology Petty Loan Co. Ltd. Associated enterprises of the Company
Guangdong Guanghui Expressway Co. Ltd. Joint ventures of the Company
4. Other Related parties
Name Relation with the Company
Poly Changda Engineering Co. Ltd.
Controlled by the same parent company and equity
participation unit
Hongkong- Zhuhai-Macao Connection line management center Managed by the parent company
Guangdong Boda Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong East Thinking Management Technology
Development Co. Ltd.
Fully owned subsidiary of the parent company
Guangdong Feida Traffic Engineering Co. ltd. Fully owned subsidiary of the parent company
Guangdong Gaoda Property Development Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Media Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Guangle Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Guangzhu West Line Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Humen Bridge Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Hualu Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Traffic Industry Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Jingzhu Expressway Guangzhu North Section Co.Ltd.
Controlled by the same parent company and equity
participation unit
Guangdong Kaiyang Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Technology Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Real Estate Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Union Electron Service Co. ltd. Fully owned subsidiary of the parent company
Guangdong Lulutong Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Maozhan Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Shanfen Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Shenshan Expressway East Section Co. Ltd.
Controlled by the same parent company and equity
participation unit
Name Relation with the Company
Guangdong Provincial Freeway Co.Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Communication P lanning & Design Institute Co.Ltd.
Fully owned subsidiary of the parent company
Guangdong Traffic Development Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Read & Bridge Construction Development Co.Ltd.
Fully owned subsidiary of the parent company
Guangdong Tongyi Expressway Service Area Co. Ltd.公司 Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yuedong Expressway Industry Deve lopment Co.Ltd.
Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company
Guangshenzhu Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangzhongjiang Expressway Project Management Dept Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company
Jiangmen Jianghe Expressway Co. Ltd.
Controlled by the same parent company and equity
participation unit
Xinyue Co. Ltd. Fully owned subsidiary of the parent company
Yunfo Guangyun Expressway Co. Ltd. Fully owned subsidiary of the parent company
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Related parties
Content of related
transaction
Amount of
current period
Amount
of
previous
period
Over the
trading
limit or
not?
Amount of last
period
Guangdong Union electronic services
co. Ltd.Service 3066900.10 3767825.78
Guangdong Feida Traffic
Engineering Co. Ltd.
Electrical and
mechanical
494467.97
Related parties
Content of related
transaction
Amount of
current period
Amount
of
previous
period
Over the
trading
limit or
not?
Amount of last
period
maintenance
Guangdong Humen Bridge Co. Ltd. Elecctric charge 20981.64
Guangdong Guanghui Expressway
Co. Ltd.
Advertising Electricity 3937.74
Guangdong Lulutong Co. Ltd. Maintenance charges 715406.99
Guangdong Tongyi Expressway
Service Area Co. Ltd
Service 103076.37
Guangdong Expressway Media Co.Ltd.
Electric charge 6431.59
Poly Changda Engineering Co. Ltd. Service charge 2440.62
Guangdong Guanghui Expressway
Co. Ltd.
Interest 3029231.25 2014593.75
Guangdong Jiangzhong Expressway
Co. Ltd.
Interest 712530.00 708615.00
Guangdong East Thinking
Management Technology
Development Co. Ltd.
Service 60000.00 60000.00
Guangdong Union electronic services
co. Ltd.
OA system
maintenance
17094.71
Poly Changda Engineering Co. Ltd. Purchase assets 47564260.01 183277074.35
Guangdong Xinyue traffic
Investment Co. Ltd.Purchase assets 1908423.62 6688119.43
uangdong Hualu Traffic Technology
Co. Ltd.
Purchase assets 459346.00
Related transactions on sale goods and receiving services
In RMB
Related party Content
Amount of current period Amount of previous
period
Jingzhu Expressway Guangzhu North
section Co. Ltd.
Commission
management fee
9734292.46 9516226.40
Guangdong Provincial Freeway Co.Ltd. Project fund 1773900.00 2052036.80
Related party Content
Amount of current period Amount of previous
period
Guangdong Union electronic services co.Ltd.Promotion fees 1525613.18
Guangdong Guanghui Expressway Co. Ltd.Revenue from heavy
maintenance services
522123.89
Guangdong Tongyi Expressway Service Area
Co. Ltd
water and electricity 427637.49
Guangdong Feida Traffic Engineering Co.Ltd
CPC card sales
revenue
138053.09
Poly Changda Engineering Co. Ltd. water and electricity 16894.60
Guangdong Xinyue traffic Investment Co.Ltd.Purchase assets 15840.71 32212.39
Guangzhenzhu Expressway Co. Ltd. Project fund 8407.08 114655.17
Guangdong Highway Construction Co. ltd. Project fund 603570.34
Guangdong Road & Bridge Construction
Development Co. Ltd.
Project fund 120550.07
Guangdong Boda Expressway Co. Ltd. Project fund 107547.17
Guangdong Kaiyang Expressway Co. Ltd. Project fund 89142.85
Yunfo Guangyun Expressway Co. Ltd. Project fund 69535.81
Guangdong Traffic Industry Investment Co.Ltd.Project fund 59433.96
Guangdong Humen Bridge Co. Ltd. Project fund 29716.98
Zhaoqing Yuezhao Highway Co. Ltd. Project fund 123113.21
Guangdong Jiangzhong Expressway Co.Ltd.Project fund 169001.14
Shenzhen Huiyan Expressway Co. Ltd. Project fund 663319.81
(2) Information of related lease
The Company was lessor：
In RMB
Name of lessee Category of lease assets
The lease income confirmed
in this year
The lease income confirmed
in last year
Guangdong Litong
Technology Investment Co.Ltd.Land lease 37690.80
Guangdong Expressway Advertising lease 12905.92 195542.86
Media Co. Ltd.Total 50596.72 195542.86
- The company was lessee：
In RMB
Lessor Category of leased assets
The lease income confirmed
in this year
Category of leased assets
Guangdong Litong Real
Eatate Investment Co. Ltd
Office space
4450575.83 4469957.38
Zhaoqing Yuezhao Highway
Co. Ltd.
Advertising column lease 124031.00
Guangzhou Yueyun Traffic
Co. Ltd.
Car rental fee 59601.00 42400.00
Guangdong Gaoda Property
Development Co. Ltd.
Office space
49582.73 52686.57
Total 4683790.56 4565043.95
Note
(3) Inter-bank lending of capital of related parties
In RMB
Related party
Amount
borrowed and
loaned
Initial date Due date Notes
Borrowed
Guangdong Guanghui
Expressway Co. Ltd.
30000000.00 April 22019 April 12020
Guangdong Guanghui
Expressway Co. Ltd.
105000000.00 April 12019 March 312020
Guangdong Guanghui
Expressway Co. Ltd.
45000000.00 September 252019 September 242020
Guangdong Guanghui
Expressway Co. Ltd.
105000000.00 May 132020 May 122021
Guangdong Guanghui
Expressway Co. Ltd.
30000000.00 April 212020 April 202021
Guangdong Jiangzhong
Expressway Co Loaned. Ltd.
36000000.00 November 142018 November 132023
Loaned
(4) Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
personnel
218.30 241.78
(5) Other related-party transactions
-Capital Deposit Situation of Guangdong Provincial Communication Group Finance Co. Ltd.
In RMB
Items
Amount of current period Amount of previous period
Balance of Deposit
680793735.15 189879309.18
Interest Income
3962970.38 6226669.02
Pricing Principle
Reference to the deposit rate of the people's Bank of China for the same period
On December 25 2017 and December 22 2017 the Company signed the Cash Management Business
Cooperation Agreement with Guangdong Communications Group Finance Co. Ltd. and Industrial and
Commercial Bank of China Guangdong Branch and signed the Cash Management Business Cooperation
Agreement with Guangdong Communications Group Finance Co. Ltd. and China Construction Bank Corporation.
Guangdong Branch respectively to join in the cash pool of Guangdong Communications Group Finance Co. Ltd.-On June 15 2016The company’s 29th meeting (Provisional) of the seventh board of directors was
convened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project of
Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting agreed
that Guangdong Provincial Fokai Expressway Co. Ltd entrusts Guangdong Provincial Highway Construction Co.Ltd with the construction management of the renovation and expansion project of Sanbao-to-Shuikou Section of
Shengyang-to-Haikou National Expressway and handling the related matters of the entrustment of the
construction management.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Name Related party
Amount at year end Amount at year beginning
Balance of
Book
Bad debt
Provision
Balance of
Book
Bad debt
Provision
Contract assets
Guangdong Xinyue Traffic Investment
Co. Ltd.
127567.50 127567.50
Contract assets Guangdong Road & Bridge Construction 83391.05 83391.05
Name Related party
Amount at year end Amount at year beginning
Balance of
Book
Bad debt
Provision
Balance of
Book
Bad debt
Provision
Development Co. ltd.
Contract assets
Guangdong Guanghui Expressway Co.Ltd.
48880.00 48880.00
Contract assets
Guangdong Feida Traffic Engineering
Co.Ltd.
48230.00 48230.00
Contract assets Zhaoqing Yuezhao Highway Co. Ltd. 41442.48 41442.48
Contract assets Guangdong Provincial Freeway Co.Ltd. 21232.00 41377.00
Contract assets
Guangdong Guangzhu West Line
Expressway Co. Ltd.
18781.60 18781.60
Contract assets Guangshenzhu Expressway Co. Ltd. 9096.00 9096.00
Contract assets
Guangdong Jiangzhong Expressway Co.Ltd.
8412.00 8412.00
Contract assets
Guangdong Highway Construction Co.Ltd.
7200.00 7200.00
Contract assets Guangdong Boda Expressway Co. Ltd. 4531.00 4531.00
Contract assets Guangdong Humen Bridge Co. Ltd. 2700.00 2700.00
Contract assets
Guangdong Shenshan Expressway East
Section Co. Ltd.
12000.00
Contract assets
Guangdong Litong Technology
Investment Co. ltd.
5273.00
Account
receivable
Guangdong Union electron Service Co.Ltd.
51964979.29 57172014.20
Account
receivable
Guangdong Humen Bridge Co. Ltd. 16318549.64 16698073.73
Account
receivable
Jingzhu Expressway Guangzhu North
Section Co. Ltd.
10324414.00 6174264.00 4450.00
Account
receivable
Guangdong Provincial Freeway Co.Ltd. 1834743.30 175248.90
Account
receivable
Guangdong Guanghui Expressway Co.Ltd.
1490227.95 2112.57 1355473.55 2112.57
Account
receivable
Guangdong Feida Traffic Engineering
Co. Ltd.
1166085.25 115108.90 1423875.25 103072.45
Account
receivable
Guangdong Xinyue Traffic Investment
Co. ltd.
680652.70 220555.94 2334682.70 160715.94
Name Related party
Amount at year end Amount at year beginning
Balance of
Book
Bad debt
Provision
Balance of
Book
Bad debt
Provision
Account
receivable
Guangdong Road & Bridge Construction
Development Co. Ltd.
567957.47 567957.47
Account
receivable
Guangdong Boda Expressway Co. Ltd. 537848.00 463491.88
Account
receivable
Guangdong Highway Construction Co.Ltd.
287020.85 166960.46 336946.45 3818.00
Account
receivable
Guangzhenzhu Expressway Co. Ltd. 79236.00 950.00 115278.40
Account
receivable
Guangdong Guangzhu West Line
Expressway Co. Ltd.
65946.00 65946.00 384226.00
Account
receivable
Guangdong Jiangzhong Expressway Co.Ltd.
19708.00 19708.00
Account
receivable
Guangdong Shenshan Expressway Co.Ltd.
12000.00
Account
receivable
Guangdong Yuedong Expressway
Industry Development Co. Ltd.
7367.20 736.72 7367.20
Account
receivable
Guangdong Guangle Expressway Co.Ltd.
7248.00 7248.00
Account
receivable
Guangdong Yueyun Traffic Co. Ltd. 3032.00 3032.00
Account
receivable
Guangdong Expressway Media Co. Ltd. 1909300.00
Account
receivable
Guangdong Litong Technology Co. ltd. 68542.00
Account
receivable
Guangdong Maozhan Expressway Co.Ltd.
8747.20
Account
receivable
Guangdong Shanfen Expressway Co.Ltd.
8028.80
Account
receivable
Jiangmen Jianghe Expressway Co.Ltd. 2539.20
Advanced
payment
Guangdong Feida Traffic Engineering
Co. Ltd.
595546.00
Advanced
payment
Zhaoqing Yuezhao Highway Co. Ltd. 20672.00 144703.00
Advanced Guangdong Litong Real Estate 735092.38
Name Related party
Amount at year end Amount at year beginning
Balance of
Book
Bad debt
Provision
Balance of
Book
Bad debt
Provision
payment Investment Co. Ltd.
Dividend
Receivable
Zhaoqing Yuezhao Highway Co. Ltd. 9750000.00
Dividend
Receivable
Guangdong Yueke Technology Petty
Loan Co. Ltd.
6000000.00
Other Account
receivable
Guangdong Litong Real Estate
Investment Co. Ltd.
1515077.22 1515077.22
Other Account
receivable
Guangdong Guanghui Expressway Co.Ltd.
560000.00 560000.00
Other Account
receivable
Guangdong Provincial Freeway Co.Ltd. 463491.88 566447.18
Other Account
receivable
Zhaoqing Yuezhao Highway Co. Ltd. 390000.00 390000.00
Other Account
receivable
Guangdong Expressway Media Co. Ltd. 120655.99 896321.01
Other Account
receivable
Guangdong Tongyi Expressway Service
Area Co. Ltd.
94029.95
Other Account
receivable
Gaungshenzhu Expressway Co. Ltd. 60640.00 60640.00
Other Account
receivable
Guangdong Gaoda Property
Development Co. ltd.
29462.00 15906.00
Other Account
receivable
Guangdong Boda Expressway Co. Ltd. 22740.00 22740.00
Other Account
receivable
Guangdong Gufangzhu West Line
Expressway Co. Ltd.
20000.00 20000.00
Other Account
receivable
Poly Changda Engineering Co. Ltd. 8346.18
Other Account
receivable
Hongkong Zhuhai Macao Bridge
Connection line management center
3000.00 3000.00
Other Non-Current
Assets
Poly Changda Engineering Co. Ltd. 34218249.49 48400293.16
Other Non-Current
Assets
Guangdong Hualu Traffic Technology
Co. Ltd.
277117.00
Long-term
amortization costs
Guangdong Jingzhu Expressway
Guangzhu North Section Co. Ltd.
1061255.72 1114764.44
（2）Payables
In RMB
Name Related party
Amount at year end
Amount at year
beginning
Account payable
Guangzhongjiang Expressway Project
Management Dept
28000000.00 28000000.00
Account payable Guangdong Highway Construction Co. Ltd. 25630651.00 25630651.00
Account payable Guangdong Provincial Freeway Co.Ltd. 8746491.18 8746491.18
Account payable
Guangdong Feida Traffic Engineering Co.Ltd.
5054211.99 7588881.23
Account payable
Guangdong Litong Technology Investment
Co. Ltd.
2663010.00 2663010.00
Account payable
Guangdong Litong Real Estate Investment
Co. Ltd.
1481776.94
Account payable
Guangdong Xinyue Traffic Investment Co.Ltd.
1237761.42 1237761.42
Account payable Guangdong Union Electron Service Co.Ltd. 859831.41
Account payable Guangdong Guanghui Expressway Co. Ltd. 727200.00 742051.92
Account payable Poly Changda Engineering Co. Ltd. 16685096.00
Account payable Guangdong Lulutong Co. ltd. 852623.59
Account payable
Guangdong Hualu Traffic Technology Co.Ltd.
276371.00
Other Payable account Guangdong Guanghui Expressway Co. Ltd. 182161406.25 184505512.50
Other Payable account Poly Changda Engineering Co. Ltd. 4665296.00 19879471.19
Other Payable account Guangdong Union Electron Service Co.Ltd. 3071938.39 367300.00
Other Payable account
Guangdong Feida Traffic Engineering Co.Ltd.
1758080.11 2092641.20
Other Payable account
Guangdong Hualu Traffic Technology Co.Ltd.
1156567.00 1077965.88
Other Payable account
Guangdong Xinyue Traffic Investment Co.Ltd.
986279.22 1331893.22
Other Payable account
Guangdong East Thinking Management
Technology Development Co. Ltd.
439523.40 416398.40
Other Payable account
Guangdong Litong Technology Investment
Co. Ltd.
247070.50 247070.50
Other Payable account Guangzhongjiang Expressway Project 200000.00 200000.00
Name Related party
Amount at year end
Amount at year
beginning
Management Dept
Other Payable account
Guangdong Tongyi Expressway Service Area
Co. Ltd.
120000.00 120000.00
Other Payable account
Guangdong Communication P lanning &
Design Institute Co. Ltd.
158049.70 158049.70
Other Payable account
Guangzhou Xinyue Traffic Technology Co.Ltd.
101323.00 101323.00
Other Payable account Guangdong Expressway Media Co. Ltd. 70000.00 70000.00
Other Payable account Ganzhou Kangda Expressway Co. Ltd. 72121.23
Other Payable account
Guangdong Litong Real Estate Investment
Co. Ltd.
28429.38
Other Payable account Guangdong Lulutong Co. Ltd. 10912.41 10912.41
Dividend payable Guangdong Communication Group Co. Ltd. 216663424.84
Dividend Payable Guangdong Highway Construction Co. Ltd. 196789158.44
Dividend payable Guangdong Provincial Freeway Co.Ltd. 22339621.20
Dividend payable Xinyue Co. Ltd. 5570858.29
Dividend Payable Guangdong Traffic Development Co. Ltd. 899075.22
Contract Liabilities
Guangdong Xinyue Traffic Investment Co.Ltd.
22300.88
Non-current liabilities due 1
year
Guangdong Jiangzhong Expressway Co. Ltd. 39150.00 43065.00
Long-term payable Guangdong Jiangzhong Expressway Co. Ltd. 36000000.00 36000000.00
7. Related party commitment
None
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
None
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
（1）Capital commitment
On June 15 2016 the Company’s 29th meeting (Provisional) of the seventh board of directors was
convened. In the meeting the Proposal on Increasing Funding for Guangdong Fokai Expressway Co. Ltd
pertaining to the Renovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou
National Expressway was examined and approved agreed that based on the approved total investment amount by
relevant government department then the company’s subsidiary- Guangdong Fokai Expressway Co. Ltd carries
out the investment and construction of the renovation and expansion project of Sanbao-to-Shuikou Section of
Shengyang-to-Haikou National Expressway; the company increases funding for Guangdong Provincial Fokai
Expressway Co. Ltd pertaining to the renovation and expansion project of Sanbao-to-Shuikou Section of
Shengyang-to-Haikou National Expressway with the contributed funds as a proportion of 35% of the total
investment amount approved by relevant government department. The afore-said item had been examined and
approved in the first extraordinary general shareholder meeting The Company had received the approval of the
National Development and Reform comission about the uandongProvincial Santbao-Shuikou Expressway Section
Rebubuilding and Expansion Project(NO.1874-2016-NDRC Infrastructure Document)from Guangdong Provincel
Development and reform Commission On October 11 2016 agreed with the implementation of the Guangdong
Provincial Sanbao-Shuikou Expressway Section Rebuilding and Expansion Project. It’s estimated that the total
investment of this project is about 3.513 billion yuan(the static investment is about 3.289 billion yuan) of which
the project capital is 1.23 billion yuan that accounts for 35% of the total investment and such amount of the
project capital will be provided by Guangdong Provincial Fokai Expressway Co. Ltd and the rest amount of
2283 billion yuan will be solved by using bank loans. According to the "Official Reply to the preliminary design
of reconstruction and extension project of Guangdong Sanbao to Shuikou Road by Ministry of Transport"
(No.73-2017 Transport Road Document) issued by Guangdong Provincial Department of Transport the Ministry
of Transport checked and ratified that the general estimate of the preliminary design of reconstruction and
extension project of Guangdong Sanbao to Shuikou Road is RMB 3.426 billion As of June 302020 The
accumulated expenses occurred of Sanboto Shuikou Highway extension project was 2.587 billion yuan.
No Contract Counterparty
Economic
Content
Contract Amount Fulfilled as of June 30 2020
1 China Railway Tunnel Group Co.
Ltd.
Civil
Engineering
251026485.00 247327027.72
2 Boli Changda Engineering Co. Ltd. Civil
Engineering
624878240.00 579422527.93
3 China Railway 18th Bureau Group
Co. Ltd.
Civil
Engineering
219974609.00 205366454.48
4 CCCC First Navigation Engineering
Bureau Co. Ltd
Civil
Engineering
355014108.00 300078345.44
2. Contingency
(1) Significant contingency at balance sheet date
As of June 302020The company does not disclose the pension plan undisclosed matter should exist.
(2) The Company have no significant contingency to disclose also should be stated
None
XV. Events after balance sheet date
1.Profit distribution
On April 3 2020 the ninth board of directors of the Company held its fourth meeting approved the profit
distribution plan for 2019 and distributed cash dividends of RMB 882320185.17. On June 29 2020 the
Company convened the 2019 Annual General Meeting of Shareholders reviewed and approved the profit
distribution plan and distributed cash dividends of RMB 882320185.17.
On August 6 2020 the cash dividend of A shareholders entrusted by the Company to China Clearing
Shenzhen Branch will be directly transferred to its capital account through the shareholder custody securities
company (or other custodian institutions); Dividends of restricted shares before the initial offering of A shares and
cash dividends of Guangdong Provincial Freeway Co.Ltd. a shareholder of A shares are distributed by the Company
itself. On August 10 2020 the cash dividends of B shareholders were directly transferred to their capital accounts
through the custodian securities companies or custodian banks through shareholders.In RMB
Profits or dividends declared upon examination and approval 882320185.17
XVI.Other significant events
1. Segment information
The company's business for the Guangfo Expressway the Fokai Expressway and Jingzhu Expressway Guangzhu
Section toll collection and maintenance work the technology industry and provide investment advice no other
nature of the business no reportable segment.
2.Government Subsidy
(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method
Subsidy item Category Open
ing
balan
ce
New subsidy
amount in
current period
The carry-over
in current period
is included in
profit and loss
amount
Other
change
s
Closing balance Presentation items
carried over into
profit or loss in
the current period
Asset-related/re
venue-related
Cancel the special
subsidy for the
expressway provincial
toll station project
Financial
appropriation
35416900.00 3137075.19 32279824.81 Other income Assets related
Discount interest fund Discount
interest fund
2500000.00 2500000.00 Financial
Expreses
Income related
(2) Government subsidies included in current profits and losses using the total amount method
Subsidy item Category Amount included in profit or loss
in the current period
Presentation items included
in profit or loss in the
current period
Asset-related/revenue-related
Subsidy for post
stabilization
Subsidy for post
stabilization
398471.22 Other income Income related
3.Other important transactions and events have an impact on investors decision-making
(1)June 152007 early in the morning The 325 Jiujiang Bridge collapsed on # 23 pier for ―Nanguijii 035#
collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway Company leads the
collapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On June 10 2009 Jiujiang Bridge opened
to traffic has been restored.On June 192007， The Ministry of Communications the State Production Safety Supervision and
Administration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15
"Jiujiang Bridge Collision Accident" initially determined the causes of the accident are: the incident ship
suddenly met heavy fog on the way from Foshan Gaoming to Sunde the captain neglected looking out did not
take proper measures and deviated from the main channel touched the 325 National Road Jiujiang Bridge the
non-navigation bridge pier and caused the collapsion of part of the Jiujiang bridge. The accident was an unnatural
On July 192007，Fokai Company applied preservation of property to Guangzhou Maritime Court.On August
222007，Fokai Company officially prosecuted to Guangzhou Maritime Court asking Foshan South Sea Shipping
Company Limited and Yang Xiong to undertake the compensation 25587684 yuan for the loss caused by
collapsing of Jiujiang Bridge. On August 28 2007 Guangzhou Maritime Court accepted the case. According to
the (2007)-Canton Haifa No. 332 ruling book issued by Guangzhou Maritime Court the proceeding of the case
was suspended.
After the court accepted the case the incident investigation team of Guangdong Provincial Government had
not made the final report of Jiujiang Bridge accident. The Court on November 5 2007 decided to suspend the
proceeding. In September 2008 Jiujiang Bridge accident investigation report was officially reported and resumed
the proceedings. On December 5 2008 Guangzhou Marine Court opened a court trial to procceeded the case.
Currently Guangzhou Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide
therefore on January 5 2009 Guangzhou Maritime Court ruled the suspension of the case. On September 17
2013 the Guangzhou Maritime Court issued a notice of civil and eliminate the cause of suspension of proceedings
the court decided to resume the trial. On December 19 2013 the Guangzhou Maritime Court opened a court
session has not yet made the first-instance judgment. On March 7 2014 the Court made the first instance verdict:
the defendant Foshan Nanhai Yuhang ship Services Co. Ltd. and Yang Xiong compensated the plaintiff Fokai
Expressway Co. Ltd. toll revenue losses of 19357500.96 yuan; the court dismissed the plaintiff other aspirations.
The defendant appealed to the Higher People's Court of Guangdong Province the Guangdong Provincial Higher
People's Court ruled on June 5 2014 the case discontinued proceedings. By the end of the report period the
abatement of action causes are already removed and the provincial higher court restores the hearing and conducts
the investigation on April 21 2017. On 27 February 2020 the company received a court decision of second
instance which rejected the appeal and upheld the original sentence. Because the defendant failed to perform the
effective judgment the company applied to Guangzhou Maritime Court for compulsory execution. On July 27
2020 the company received the enforcement ruling of Guangzhou Maritime Court ([2020] Y 72 Z No.247 - 3rd);
A total execution payment of RMB 657219.33 was transferred to our company by the court and the execution
procedure was terminated according to law.
(2)The 26th (Provisional)Meeting of the sixth board of directors of Guangdong Provincial Expressway
Development Co. Ltd. was held of May 10 2012. The meeting examined and adopted the proposal Concerning
the Company’s Accepting the insurance Bond Investment Plan of Pacific Asset Management Co. Ltd. The
Company was approved to accept the insurance bond investment plan made by Pacific Asset Management Co.
Ltd. The amount of proceeds to be raised is not more than 1.5 billion yuan . Floating interest rate plus guaranteed
base interest rate applies as the interest rate. The Floaing interest rate shall not exceed the basic interest rate of
RMB loan with a term of over five years on the day when the investment fund of the insureance company is
transferred into the Company’s account and the corresponding days of the future years which shall be adjusted
once each year. The guaranteed base interest rate is 5.6%. The concrete amount of raised proceeds shall be
within maximum limit of investment fund filed with CIRC. The actual amount wholly transferred to the
Company shall apply. The final interest rate is subject to investment Contract for Bond Investment Plan between
Pacific and Guangdong Expressway Filed with CIRC. It was approved to authorize the management of the
Company to implement the above-mentioned matters.
The Company was approved to provide counter guarantee to Guangdong Communication Group
Co.Ltd.with 75% equity of Guangdong Fokai Expressway Co. Ltd. Held by it . As of the end of this period the
company has returned all the raised funds to Pacific Asset Management Co. Ltd. On May 22 2020 the company
completed the cancellation registration of equity pledge of Guangzhou Guangzhu Transportation Investment
Management Co. Ltd.
（3）The 19th (Provisional)Meeting of the Eighth board of directors of Guangdong Provincial Expressway
Development Co. Ltd. was held of August 7 2018. The meeting examined and approved the Proposal on Issuing
Medium-Term Notes，Agree that the company intends to register in the China Interbank Market Dealers
Association with a quota of not more than 3.4 billion yuan (inclusive) which is within 40% of the company's
latest audited net assets. Apply for a one-time or installment in a timely manner with a term of no less than 5
years (including 5 years) and raise funds to repay the loan and replenish working capital; The matter has been
passed by the resolution of the first interim shareholders' meeting in 2018.On January 4 2019 the dealers association issued a Notice of Acceptance of Registration (ZSXZ [2019]
MTN 9). The amount of acceptance of the company's medium-term notes is 3.4 billion yuan and the amount of
registration is valid for 2 years from the date of receipt of the notice of acceptance and it is jointly underwritten
by Industrial and Commercial Bank of China Limited and China Construction Bank Limited. The company
borrowed 680 million yuan on March 1 2019.XVII..Notes of main items in financial reports of parent company
1. Account receivable
1.Classification account receivables.
In RMB
Category
Amount in year-end Balance Year-beginning
Book Balance
Bad debt
provision
Book value
Book Balance
Bad debt
provision
Book value Amount Proportio
n(%)
Amount Propor
tion(%
)
Amount Proportio
n(%)
Amou
nt
Propor
tion(%
)
Of which
Accrual of bad debt provision by
portfolio
21134758.62 100.00% 21134758.62 21864051.27 100.00% 21864051.27
Of which：
Aging portfolio 21134758.62 100.00% 21134758.62 21864051.27 100.00% 21864051.27
Total 21134758.62 100.00% 21134758.62 21864051.27 100.00% 21864051.27
Accrual of bad debt provision by single item: None
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of other receivables if the provision for bad debts of
bills receivable is accrued according to the general model of expected credit loss:
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 21134758.62
Total 21134758.62
(2) Accounts receivable withdraw reversed or collected during the reporting period
None
（3）The current accounts receivable write-offs situation
None
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Guangdong Union Electronic Services
Co. Ltd.
21134758.62 100.00%
Total 21134758.62 100.00%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
Other note：
2.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 166906851.62 7205472.90
Other receivable 6683668.23 6230178.29
Total 173590519.85 13435651.19
（1）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks
investment No.1 Limited partnership enterprise
1205472.90 1205472.90
Guangdong Yueke Technology Petty Loan Co. Ltd. 6000000.00
Jingzhu Expressway Guangzhu Section Co. Ltd. 41587034.32
Guangzhou Guangzhu Traffic Investment
Mangement Co. Ltd.
114364344.40
Zhaoqing Yuezhao Highway Co. Ltd. 9750000.00
Total 166906851.62 7205472.90
2）Significant dividend receivable aged over 1 year
None
（2） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Balance of settlement funds for
securities transactions
30844110.43 30844110.43
Cash deposit 1953995.00 1935101.00
Petty cash 2582145.37 1700634.57
Other 2147527.86 2594442.72
Total 37527778.66 37074288.72
2）Bad-debt provision
In RMB
Bad Debt Reserves
Stage 1 Stage 2 Stage 3
Total
Expected credit
losses over the next
12 months
Expected credit loss over
life (no credit
impairment)
Expected credit losses for
the entire duration (credit
impairment occurred)
Balance as at January
1 2020
30844110.43 30844110.43
Bad Debt Reserves
Stage 1 Stage 2 Stage 3
Total
Expected credit
losses over the next
12 months
Expected credit loss over
life (no credit
impairment)
Expected credit losses for
the entire duration (credit
impairment occurred)
Balance as at January
1 2020 in current
—— —— —— ——
Balance as at June
302020
30844110.43 30844110.43
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year 2846525.95
1-2 years 1010739.70
2-3 years 443715.70
Over 3 years 33226797.31
3-4 years 1490184.00
4-5 years 463491.88
Over 5 years 31273121.43
Total 37527778.66
3) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Category
Opening
balance
Amount of change in the current period
Closing
balance Accrual
Reversed or
collected
amount
write - off Other
Accrual of bad
debt provision
by single item:
30844110.43 30844110.43
Total 30844110.43 30844110.43
Of which the significant amount of the reversed or collected part during the reporting period :None
4)The actual write-off other accounts receivable: None
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Name Nature Closing balance Aging
Proportion of the
total year end
balance of the
accounts
receivable(%)
Closing balance of
bad debt provision
Kunlun Securities Co.Ltd
Securities tradi
ng settlement f
unds
30844110.43
Over 5
years
82.19% 30844110.43
Petty cash Petty cash 2429631.37
Within 1
year
6.47%
Guangdong Litong Real
Estates Investment Co. Ltd.
Deposit 1505864.00 3-4 years 4.01%
Foshan Hezhan Yinghui
Property Management Co.Ltd.
Disposal of
fixed assets
935820.00
Within 1
year
2.49%
Guangdong Provincial
Freeway Co.Ltd.
Entrustment
management
fee
463491.88 4-5 year 1.24%
Total -- 36178917.68 -- 96.40% 30844110.43
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
3. Long-term equity investment
In RMB
Items
End of term Beginning of term
Book Balance Impairment Book value Book Balance Impairment Book value
provision provision
Investment in subsidiaries 1613665008.81 1613665008.81 1533665008.81 1533665008.81
Investment in joint
ventures and associates
3231674455.49 3231674455.49 3255739898.36 3255739898.36
Total 4845339464.30 4845339464.30 4789404907.17 4789404907.17
（1）Investment to the subsidiary
In RMB
Name Opening balance
Increase /decrease in reporting period
Closing balance
Closing
balance of
impairme
nt
provision
Add
investment
Decre
ased
invest
ment
Withdra
wn
impairm
ent
provisio
n
Other
Jingzhu Expressway Guangzhu
Section Co. Ltd.
419105446.88 419105446.88
Guangzhou Guangzhu Traffic
Investment Management Co. Ltd.
859345204.26 859345204.26
Guangfo Expressway Co. ltd. 154982475.25 154982475.25
Guangdong Expressway
Technology Investment Co. Ltd.
95731882.42 95731882.42
Yuegao Capital Investment
(Hengqin) Co. Ltd.
4500000.00 80000000.00 84500000.00
Total 1533665008.81 80000000.00 1613665008.81
（2）Investment to joint ventures and associated enterprises
In RMB
Name Opening balance
Increase /decrease in reporting period
Closing balance
Closing
balance of
impairment
provision
Add
investment
Decreased
investmen
t
Gain/loss of
Investment
Adjustment of
other
comprehensive
income
Other equity
changes
Declaration of
cash dividends
or profit
Withdra
wn
impairm
ent
provisio
n
Ot
her
I. Joint ventures
Guangdong
Guanghui
Expressway Co.
Ltd.
1048473573.52 43495261.34 3954180.00 24715954.57 1071207060.29
Subtotal 1048473573.52 43495261.34 3954180.00 24715954.57 1071207060.29
II. Associated enterprises
Guangdong
Jiangzhong
Expressway Co.
Ltd.
179491516.98 -2474550.29 177016966.69
Ganzhou Gankang
Expressway Co.
Ltd.
213672650.90 -18334081.49 195338569.41
Ganzhou Kangda
Expressway Co.
Ltd.
234733526.86 5693920.94 240427447.80
ShenzhenHuiyan
Expressway Co.
Ltd.
262682427.44 916998.38 263599425.82
Guoyuan Securities
Co.Ltd.
793926807.52 14629008.65 2533278.11 11940297.90 799148796.38
Guangdong Yueke
Technology Petty
Loan Co. Ltd.
214637335.45 4318117.99 218955453.44
Zhaoqing Yuezhao
Highway Co. Ltd.
308122059.69 7608675.97 49750000.00 265980735.66
Subtotal 2207266324.84 12358090.15 2533278.11 61690297.90 2160467395.20
Total 3255739898.36 55853351.49 2533278.11 3954180.00 86406252.47 3231674455.49
4. Business income and Business cost
In RMB
Items
Amount of current period Amount of previous period
Revenue Cost Revenue Cost
Main business 288021522.60 326653026.85 617314121.48 325665097.11
Other 5558207.44 2004931.99 5812395.87 3525577.41
Total 293579730.04 328657958.84 623126517.35 329190674.52
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income
accounted by cost method
380951378.72 670160115.89
Long-term equity investment income
accounted by equity method
55853351.49 237712998.09
Investment return on investments held to
maturity during the holding period
50785213.04 38528868.23
Interest income from debt investment
during holding period.
25494258.90 29257519.49
Total 513084202.15 975659501.70
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of non-current assets -184874.06
Government grants recognized in the current period except for
those acquired in the ordinary course of business or granted at
certain quotas or amounts according to the country’s unified
standards
3535546.41
Net amount of non-operating income and expense except the
aforesaid items
2070546.90
Other non-recurring Gains/loss items 335742.79
Items Amount Notes
Less :Influenced amount of income tax 1440123.12
Influenced amount of minor shareholders’ equity (after tax) 632378.68
Total 3684460.24 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses it is necessary to explain the reason.
□ Applicable √Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
Profit as of reporting period Weighted average ROE (%)
EPS（Yuan/share）
EPS-basic EPS-diluted
Net profit attributable to common
shareholders of the Company
-0.06% -0.0028 -0.0028
Net profit attributable to common
shareholders of the Company
after
deduction of non-recurring profit
and loss
-0.10% -0.0046 -0.0046
3.Other
XII. Documents Available for Inspection
1. Accounting statements carried with personal signatures and seals of legal representative Chief Financial officer
and Financial Principal.
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures
of certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.
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