Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Financial Report
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 302023
In RMB
Items June 302023 January 12023
Current asset：
Monetary fund 5284849991.90 4290581490.78
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 108862469.85 108368797.56
Financing of receivables
Prepayments 4797746.85 7785192.95
Insurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable
Including：Interest receivable 56736432.76 34456244.64
Dividend receivable
Other receivable 45903912.26 1205472.90
Repurchasing of financial assets
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 34733.27 2042395.28
Total of current assets 5455281374.63 4443234121.21
1Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Items June 302023 January 12023
Non-current assets：
Loans and payment on other’s behalf disbursed
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 3068430688.22 2923305042.30
Other equity instruments investment 1552643487.90 1557303730.98
Other non-current financial assets 181400000.00 101400000.00
Property investment 2557585.69 2668144.93
Fixed assets 9558708878.11 10098252638.07
Construction in progress 1287072029.02 753565502.12
Production physical assets
Oil & gas assets
Use right assets 30342505.71 4077555.43
Intangible assets 234050221.33 246772471.44
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 46836719.58 129044978.46
Other non-current asset 59768581.58 8374778.84
Total of non-current assets 16021810697.14 15824764842.57
Total of assets 21477092071.77 20267998963.78
Current liabilities
Short-term loans 430387597.20
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 167332578.88 197788782.77
Advance receipts 3252887.09 2718756.97
Contract liabilities
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 21219186.58 20660328.60
Tax payable 163676885.03 72307773.41
Other account payable 1044725398.43 191167560.23
Including：Interest payable
Dividend payable 920558170.17 59994517.46
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
2Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Items June 302023 January 12023
Non-current liability due within 1 year 851123675.32 117011466.96
Other current liability 500564930.33 500723556.23
Total of current liability 2751895541.66 1532765822.37
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 5868719950.00 5566595350.00
Bond payable 749147101.95 1428381232.94
Including：preferred stock
Sustainable debt
Lease liability 18856223.73 150984.47
Long-term payable 2022210.11 2517493.12
Long-term remuneration payable to staff
Expected liabilities
Deferred income 237249225.25 61082981.63
Deferred income tax liability 305873349.54 307825916.58
Other non-current liabilities
Total non-current liabilities 7181868060.58 7366553958.74
Total of liability 9933763602.24 8899319781.11
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 743059586.56 743133557.03
Less：Shares in stock
Other comprehensive income 179248772.69 170633656.67
Special reserve
Surplus reserves 1373056469.02 1373056469.02
Common risk provision
Retained profit 4688808520.14 4698029354.08
Total of owner’s equity belong to the parent
9074979474.419075659162.80
company
Minority shareholders’ equity 2468348995.12 2293020019.87
Total of owners’ equity 11543328469.53 11368679182.67
Total of liabilities and owners’ equity 21477092071.77 20267998963.78
Legal Representative: Miao Deshan
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
2.Parent Company Balance Sheet
In RMB
Items June 302023 January 12023
Current asset：
3Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Items June 302023 January 12023
Monetary fund 2707888802.08 1813035761.84
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 21127358.73 23817016.30
Financing of receivables
Prepayments 2809613.75 5515813.54
Other account receivable 1286164460.20 1542022671.18
Including：Interest receivable
Dividend receivable 45903912.26 36905472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 111143.99
Total of current assets 4017990234.76 3384502406.85
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 6560494196.19 6096415643.96
Other equity instruments investment 1552643487.90 1557303730.98
Other non-current financial assets
Property investment 2305447.44 2416006.68
Fixed assets 5107546847.79 5299569148.92
Construction in progress 208907444.68 152388974.47
Production physical assets
Oil & gas assets
Use right assets 29423746.22 3069576.00
Intangible assets 128646097.36 132991895.23
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 41695083.71 123579950.33
Other non-current asset
Total of non-current assets 13631662351.29 13367734926.57
Total of assets 17649652586.05 16752237333.42
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 84341061.59 94446623.15
Advance receipts 752954.28 250984.75
Contract Liabilities
4Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Items June 302023 January 12023
Employees’ wage payable 7395204.74 8103399.09
Tax payable 5618530.69 4643917.73
Other account payable 1332431588.92 362996135.95
Including：Interest payable
Dividend payable 920558170.17 25694517.46
Liabilities held for sales
Non-current liability due within 1 year 796835939.08 116904509.53
Other current liability 38917.98 33596.70
Total of current liability 2227414197.28 587379166.90
Non-current liabilities：
Long-term loan 5508083200.00 5552070350.00
Bond payable 749147101.95 1428381232.94
Including：preferred stock
Sustainable debt
Lease liability 18705239.26
Long-term payable 2022210.11 2517493.12
Long-term remuneration payable to staff
Expected liabilities
Deferred income 5197208.42 6838432.16
Deferred income tax liability 67459482.66 61985198.42
Other non-current liabilities
Total non-current liabilities 6350614442.40 7051792706.64
Total of liability 8578028639.68 7639171873.54
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 934926723.73 934908293.69
Less：Shares in stock
Other comprehensive income 179248772.69 170633656.67
Special reserve
Surplus reserves 1193084201.46 1193084201.46
Retained profit 4673558122.49 4723633182.06
Total of owners’ equity 9071623946.37 9113065459.88
Total of liabilities and owners’ equity 17649652586.05 16752237333.42
3.Consolidated Income statement
In RMB
Items The first half year of 2023 The first half year of 2022
I. Income from the key business 2340436775.08 2057420809.68
Incl：Business income 2340436775.08 2057420809.68
Interest income
5Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Items The first half year of 2023 The first half year of 2022
Insurance fee earned
Fee and commission received
II. Total business cost 921351272.48 879520254.68
Incl：Business cost 740670310.49 696143722.50
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 9422373.99 8932321.30
Sales expense
Administrative expense 80023845.71 85773267.04
R & D costs 81651.82 1368887.22
Financial expenses 91153090.47 87302056.62
Including：Interest expense 109161060.69 123517238.10
Interest income 18067700.31 36907508.27
Add: Other income 6449973.78 8178352.38
Investment gain（“-”for loss） 181402127.67 162320728.99
Incl: investment gains from affiliates 109631134.53 101561222.92
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
Credit impairment loss -45626953.18
Impairment loss of assets
Assets disposal income 463363.89
III. Operational profit（“-”for loss） 1561310650.87 1348863000.26
Add ：Non-operational income 2148292.85 5821631.65
Less: Non-operating expense 240222.59 2955659.39
IV. Total profit(“-”for loss) 1563218721.13 1351728972.52
Less：Income tax expenses 369040383.81 290224512.53
V. Net profit 1194178337.32 1061504459.99
(I) Classification by business continuity
1.Net continuing operating profit 1194178337.32 1061504459.99
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 885644187.99 773736908.29
2.Minority shareholders’ equity 308534149.33 287767551.70
VI. Net after-tax of other comprehensive income 8615116.02 -34872070.60
8615116.02-34872070.60
6Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Items The first half year of 2023 The first half year of 2022
Net of profit of other comprehensive income attributable to owners of
the parent company.（I）Other comprehensive income items that will not be reclassified
-3495182.31-34035245.89
into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net as
sets
2.Other comprehensive income under the equity method investee can
not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-3495182.31-34035245.89
instruments
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 lo 12110298.33 -836824.71
ss.
1.Other comprehensive income under the equity method investee can 12110298.33 -836824.71
be reclassified into profit or loss.
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
Net of profit of other comprehensive income attributable to Minority
shareholders’ equity
VII. Total comprehensive income 1202793453.34 1026632389.39
Total comprehensive income attributable to the owner of the parent
894259304.01738864837.69
company
Total comprehensive income attributable minority shareholders 308534149.33 287767551.70
VIII. Earnings per share
（I）Basic earnings per share 0.42 0.37
(II)Diluted earnings per share 0.42 0.37
The current business combination under common control the net profits of the combined party before achieved
net profit of RMB 0.00 last period the combined party realized RMB0.00.Legal Representative: Miao Deshan
General Manager：Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
7Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
4. Income statement of the Parent Company
In RMB
Items The first half year of 2023 The first half year of 2022
I. Income from the key business 740672433.01 642655502.74
Incl：Business cost 244287384.51 251072086.53
Business tax and surcharge 3726508.48 3509918.91
Sales expense
Administrative expense 49125187.49 49546552.29
R & D expense
Financial expenses 110048379.46 95640651.97
Including：Interest expenses 121332718.54 115831785.91
Interest income 11309040.26 20217007.24
Add：Other income 2607245.65 2295878.36
Investment gain（“-”for loss） 596720630.99 791681986.64
Including: investment gains from affiliates 108689822.92 98360414.38
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 463363.89
II. Operational profit（“-”for loss） 932812849.71 1037327521.93
Add ：Non-operational income 517077.90 562977.76
Less：Non -operational expenses 15753.62
III. Total profit(“-”for loss) 933314173.99 1037890499.69
Less：Income tax expenses 88524211.63 54001197.13
IV. Net profit 844789962.36 983889302.56
1.Net continuing operating profit 844789962.36 983889302.56
2.Termination of operating net profit
V. Net after-tax of other comprehensive income 8615116.02 -34872070.60
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting -3495182.31 -34035245.89
period
1.Re-
measurement of defined benefit plans of changes in net debt or
net assets
2.Other comprehensive income under the equity method invest
ee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-3495182.31-34035245.89
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
8Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Items The first half year of 2023 The first half year of 2022
(II)Other comprehensive income that will be reclassified into pr 12110298.33 -836824.71
ofit or loss
1.Other comprehensive income under the equity method invest 12110298.33 -836824.71
ee can be reclassified into profit or loss.
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 853405078.38 949017231.96
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
9Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 2387824431.30 2100682366.85
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
Other cash received from business operation 239874283.43 67435536.39
Sub-total of cash inflow 2627698714.73 2168117903.24
Cash paid for purchasing of merchandise and services 93721829.45 131225559.09
Net increase of client trade and advance
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 208391670.68 201663653.64
Taxes paid 272784405.49 344543903.69
Other cash paid for business activities 38883617.41 47133520.52
Sub-total of cash outflow from business activities 613781523.03 724566636.94
Net cash generated from /used in operating activities 2013917191.70 1443551266.30
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 48694370.25 114163108.50
Net cash retrieved from disposal of fixed assets intangible assets
13110.00522436.84
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
28514496.27
units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 48707480.25 143200041.61
Cash paid for construction of fixed assets intangible assets and
582217768.98168081166.80
other long-term assets
Cash paid as investment 101080000.00 250091000.00
Net increase of loan against pledge
10Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Items The first half year of 2023 The first half year of 2022
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 683297768.98 418172166.80
Net cash flow generated by investment -634590288.73 -274972125.19
III.Cash flow generated by financing
Cash received as investment 88470000.47
Including: Cash received as investment from minor shareholders 88470000.47
Cash received as loans 414525000.00 320000000.00
Other financing –related cash received 1460847.67 38470400.00
Sub-total of cash inflow from financing activities 504455848.14 358470400.00
Cash to repay debts 469864650.00 65836100.00
Cash paid as dividend profit or interests 415505541.67 367159468.70
Including: Dividend and profit paid by subsidiaries to minor
255975174.55218751982.19
shareholders
Other cash paid for financing activities 8327523.02 6242513.89
Sub-total of cash outflow due to financing activities 893697714.69 439238082.59
Net cash flow generated by financing -389241866.55 -80767682.59
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents 990085036.42 1087811458.52
Add: balance of cash and cash equivalents at the beginning of term 4284688231.33 2955183190.55
VI ..Balance of cash and cash equivalents at the end of term 5274773267.75 4042994649.07
11Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 763931695.41 661912004.69
Tax returned
Other cash received from business operation 142656776.31 24521728.95
Sub-total of cash inflow 906588471.72 686433733.64
Cash paid for purchasing of merchandise and services 24172182.68 13570674.87
Cash paid to staffs or paid for staffs 62195705.48 60633887.05
Taxes paid 24138943.36 23470841.12
Other cash paid for business activities 55091483.76 236627095.73
Sub-total of cash outflow from business activities 165598315.28 334302498.77
Net cash generated from /used in operating activities 740990156.44 352131234.87
II. Cash flow generated by investing
Cash received from investment retrieving 60623900.00
Cash received as investment gains 499852096.70 693296160.51
Net cash retrieved from disposal of fixed assets intangible assets
13110.00517888.00
and other long-term assets
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 499865206.70 754437948.51
Cash paid for construction of fixed assets intangible assets and
68690286.5943488728.78
other long-term assets
Cash paid as investment 98000000.00 246000000.00
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 166690286.59 289488728.78
Net cash flow generated by investment 333174920.11 464949219.73
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Other financing –related ash received
Sub-total of cash inflow from financing activities
Cash to repay debts 25339650.00 32001100.00
Cash paid as dividend profit or interests 145644863.29 136048729.34
Other cash paid for financing activities 8327523.02 6214613.89
Sub-total of cash outflow due to financing activities 179312036.31 174264443.23
Net cash flow generated by financing -179312036.31 -174264443.23
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents 894853040.24 642816011.37
Add: balance of cash and cash equivalents at the beginning of term 1811814561.84 1859614927.30
12Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
VI ..Balance of cash and cash equivalents at the end of term 2706667602.08 2502430938.67
13Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
I.Balance at
2090806127431335170633613730564698029075652293020019.8
the end of last 11368679182.67
6.0057.0356.67469.029354.089162.807
year
Add: Change
of
accountin
g policy
Correcting of
previous errors
Merger of
entities under
common
control
Other
II.Balance at 209080612 7431335 1706336 1373056 469802 907565 2293020019.8
11368679182.67
the beginning 6.00 57.03 56.67 469.02 9354.08 9162.80 7
14Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
of current year
III.Changed in - -
8615116
the current -73970.47 922083 679688. 175328975.25 174649286.86.02
year 3.94 39
（1）Total
8615116885644894259
comprehensive 308534149.33 1202793453.34.02187.99304.01
income（II）
Investment or
decreasing of 88470000.47 88470000.47
capital by
owners
1．Ordinary S
hares invested
88470000.4788470000.47
by shareholder
s
2．Holders of
other equity in
struments inve
15Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
sted capital
3．Amount of
shares paid
and accounted
as owners’
equity
4．Other（III）Profit - -
894865894865-221675174.55-1116540196.48
allotment
021.93021.93
1.Providing of
surplus
reserves
2.Providing
of common
risk provisions
3．Allotment
to the owners - -
894865894865-221675174.55-1116540196.48
(or
021.93021.93
shareholders)
16Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
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
17Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
plans that
carry forward
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 -73970.47 73970.4 -73970.47
7
IV. Balance at 209080612 7430595 1792487 1373056 468880 907497 2468348995.1 11543328469.53
18Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Less: Other Minor
Items Su Specializ Common Total of owners’
Capital Share Comprehe Surplus Retaine shareholders’
Share Capital Prefer sta ed risk Other Subtotal equity
Othe reserves s in nsive reserves d profit equity
red ina reserve provision
r stock Income
stock ble
de
bt
the end of this 6.00 86.56 72.69 469.02 8520.14 9474.41 2
term
19Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Amount in last year
In RMB
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
I.Balance at
209080612713460518.122537547606188982437
the end of last 192177466.34 2338551172.96 11320989158.13
6.0049330.56543.78985.17
year
Add: Change
of
accounti 510117.60 510117.60 330.74 510448.34
ng
policy
Correcting of
previous
errors
Merger of
entities under
common
control
20Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
Other
II.Balance at
the beginning 209080612 713460518. 1225375 4761128 8982948
192177466.342338551503.7011321499606.47
of current 6.00 49 330.56 661.38 102.77
year
III.Changed - -
19708141.1
in the current -34872070.60 41802258 43318651 -28984430.49 -462170943.45
7
year 3.53 2.96
（1）Total
7737369073886483
comprehensiv -34872070.60 287767551.70 1026632389.39
8.297.69
e income（II）
Investment or
decreasing of
capital by
owners
1．Ordinary
Shares invest
ed by shareho
lders
21Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
2．Holders o
f other equity
instruments i
nvested capit
al
3．Amount
of shares paid
and
accounted as
owners’
equity
4．Other（III）Profit - -
11917591191759-316751982.19-1508511474.01
allotment
491.82491.82
1.Providing
of surplus
reserves
2.Providing
of common
22Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
risk
provisions
3．Allotment
to the owners - -
11917591191759-316751982.19-1508511474.01
(or
491.82491.82
shareholders)
4．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
23Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
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
comprehensiv
e income
carry-over
retained
24Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
Le
instrument
ss:
Pref Su Sh Comm Minor
Items Other Special Total of owners’
erre sta Capital ar Surplus on risk Retained shareholders’
Share Capital Oth Comprehensive ized Other Subtotal equity
d ina reserves es reserves provisi profit equity
er Income reserve
stoc ble in on
k de sto
bt ck
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term
19708141.119708141（VI）Other 19708141.17
7.17
IV. Balance
209080612733168659.122537543431068549761
at the end of 157305395.74 2309567073.21 10859328663.02
6.0066330.56077.85589.81
this term
25Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2023
Other Equity instrument Less
: Other
Speciali Total of
Items Preferr Capital Shar Comprehen Surplus Retained Oth
Share capital Oth zed owners’
ed Sustaina reserves es in sive reserves profit er
er
stock ble debt reserve equity
stoc Income
k
2090806129349082917063365119308420472363318911306545
I.Balance at the end of last year
6.003.696.671.462.069.88
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current 209080612 93490829 17063365 119308420 472363318 911306545
year 6.00 3.69 6.67 1.46 2.06 9.88
--
8615116.0
III.Changed in the current year 18430.04 50075059.5 41441513.5
2
71
8615116.0844789962.853405078.
（I）Total comprehensive income
23638
(II) Investment or decreasing of capital by
owners
1 ． Ordinary Shares invested by sharehol
ders
2．Holders of other equity instruments in
vested capital
3.Amount of shares paid and accounted as
owners’ equity
4．Other
26Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2023
Other Equity instrument Less
: Other
Speciali Total of
Items Preferr Capital Shar Comprehen Surplus Retained Oth
Share capital Oth zed owners’
ed Sustaina reserves es in sive reserves profit er
er
stock ble debt reserve equity
stoc Income
k
--（III）Profit allotment 894865021. 894865021.
9393
1.Providing of surplus reserves
2．Allotment to the owners (or - -
894865021.894865021.
shareholders)
9393
3．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
5．Other comprehensive income carry-
over retained earnings
6．Other
(V) Special reserves
1. Provided this year
2．Used this term
27Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2023
Other Equity instrument Less
: Other
Speciali Total of
Items Preferr Capital Shar Comprehen Surplus Retained Oth
Share capital Oth zed owners’
ed Sustaina reserves es in sive reserves profit er
er
stock ble debt reserve equity
stoc Income
k（VI）Other 18430.04 18430.04
2090806129349267217924877119308420467355812907162394
IV. Balance at the end of this term
6.003.732.691.462.496.37
28Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Amount in last year
In RMB
The first half year of 2022
Other Equity instrument Less
: Other
Speciali Total of
Items Share Preferr Capital Shar Comprehen Surplus Retained Oth
Oth zed owners’
Capital ed Sustaina reserves es in sive reserves profit er
er reserve equity
stock ble debt stoc Income
k
2090806129348512819217746104540306458648201884971995
I.Balance at the end of last year
6.005.516.343.006.106.95
Add: Change of accounting policy 509125.37 509125.37
Correcting of previous errors
Other
II.Balance at the beginning of current 209080612 93485128 19217746 104540306 458699114 885022908
year 6.00 5.51 6.34 3.00 1.47 2.32
---
III.Changed in the current year 88237.17 34872070. 207870189. 242654022.
602669
-
983889302.949017231.
（I）Total comprehensive income 34872070.
5696
60
(II) Investment or decreasing of capital by
owners
1 ． Ordinary Shares invested by sharehol
ders
2．Holders of other equity instruments in
vested capital
3.Amount of shares paid and accounted as
owners’ equity
4．Other（III）Profit allotment - -
29Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2022
Other Equity instrument Less
: Other
Speciali Total of
Items Share Preferr Capital Shar Comprehen Surplus Retained Oth
Oth zed owners’
Capital ed Sustaina reserves es in sive reserves profit er
er reserve equity
stock ble debt stoc Income
k
119175949119175949
1.821.82
1.Providing of surplus reserves
2．Allotment to the owners (or - -
119175949119175949
shareholders)
1.821.82
3．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
5．Other comprehensive income carry-
over retained earnings
6．Other
(V) Special reserves
1. Provided this year
2．Used this term（VI）Other 88237.17 88237.17
30Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The first half year of 2022
Other Equity instrument Less
: Other
Speciali Total of
Items Share Preferr Capital Shar Comprehen Surplus Retained Oth
Oth zed owners’
Capital ed Sustaina reserves es in sive reserves profit er
er reserve equity
stock ble debt stoc Income
k
2090806129349395215730539104540306437912095860757505
IV. Balance at the end of this term
6.002.685.743.002.219.63
31Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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.
32Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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 the
shareholders' meeting concerning A shares. On January 26 2006 The Ministry of Commerce of PRC issued
“The approval on share converting of Guangdong Provincial Expressway Development Co. Ltd.” to approvethe share equity relocation and transformation. On October 9 2006 according to the “Circular aboutimplementing of share equity 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”.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 Guangfa
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).
33Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai ExpresswayJingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangzhou
Guanghui Expressway Co. Ltd.. Guangdong Jiangzhong Expressway Co.Ltd. Zhaoqing Yuezhao Expressway
Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Technology
Petty Loan Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd Hunan Lianzhi
Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.and Shenzhen Garage Electric Pile
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. Yuegao Capital Holding (Guangzhou) Co. Ltd. its holding subsidiaries Guangfo
Expressway Co. Ltd. Jingzhu Expressway Guangzhu Section Co. Ltd. and Guanghui Expressway 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 of the Board of Directors of the Company on August
282023.
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.
34Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates are indicated as follows:
None
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. 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
2014Notice on Matters Related to the Implementation of New Enterprise Accounting Standards by Listed
Companies issued in 2018.
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
35Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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
36Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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
37Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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.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 be measured reliably and have low risks of
change.
8.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
38Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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.
9.Financial instruments(Does not include impairment)
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.* Financial 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.* Financial 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
39Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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.* Financial 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.* 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.* 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.
40Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(3) Recognition basis and measurement methods for transfer of financial assets
Financial assets satisfying one of the following conditions shall be terminated and recognized: * The
contractual right to collect the cash flow of the financial asset is terminated; * The 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; * The 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
41Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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. west bank 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.
10. 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
42Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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
* Receivable 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
43Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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.* Other 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.* 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.
11.Contract assets and Contract liabilities
In the contract between the Company and customers the Company has the right to charge the contract price
for the goods and related services that have been transferred to customers and meanwhile undertake the
performance obligation of transferring the goods or services to customers. When the customer actually pays the
contract consideration or the enterprise has transferred the goods or services to the customer before the
consideration becomes due and payable the right to receive the consideration due to the transferred goods or
services shall be listed as contract assets and recognized as accounts receivable or long-term receivables when the
unconditional right of collection is obtained. `
In the contract between the Company and customers the Company has the right to receive the contract
consideration before transferring the goods or services to customers and in the meantime list the obligation to
transfer goods or services to customers due to the consideration received or receivable from customers as
contractual liabilities. When the Company fulfills its obligation to transfer goods or provide services to customers
the contractual liabilities are recognized as income.The Company shall list the contract assets and liabilities under the same contract in net amount.
44Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
12. Long-term equity investments
(1) Initial measurement
The Company makes initial measurement of long-term equity investment in the following two situations:
* 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.* 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.* 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
45Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
the investee shall be accounted by equity method.* 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.* 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
46Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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.
13.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
* Depreciation 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 Annual depreciation
value rate (amortization) rate
Land use right Remaining useful life
Houses and buildings 20-30 years 3%-10% 3%-4.85%
* 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.
14.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.
1）The classification of the fixed asset
The Company's fixed assets include roads and bridges houses and buildings machinery and equipment
electronic equipment transportation tools and other equipment.
47Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
（2）Depreciation method
Expected useful Residual rate Annual depreciation
Type Depreciation method
life(Year) （%） rate(%)
Guangfo Expressway Working flow basis 28 years 0%
Fokai Expressway-Xiebian to
Working flow basis 40 years 0%
Sanbao Section
Fokai Expressway-Sanbao to
Working flow basis 47.5 years 0%
Shuikou Section
Jingzhu Expressway Guangzhu
Working flow basis 30 years 0%
Section
Guanghui Expressway Co. Ltd. Working flow basis 23 years 0%
House Building The straight-line
20-30 years 3%-5% 3.17%-4.85%
method
The straight-line
Machine Equipment 3-10 years 3%-5% 9.50%-32.33%
method
The straight-line
Transportation Equipment 5-8 years 3%-5% 11.88%-19.40%
method
The straight-line
Other 5 years 3%-5% 19.00%-19.40%
method
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.
15.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.
16.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:
* Production and expenditure have occurred;
48Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
* Borrowing costs have already occurred;
* 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.
17.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.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.
49Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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
Toll road franchises Operating period for residual charges
（2）The expenditure of internal research and development projects
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.
18. 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.
19. 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;
50Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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.
20.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:
* The obligations are the current obligations undertaken by the enterprise;
* Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;
* 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:
* Contingencies involving a single item shall be determined according to the most probable amount.* 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.
21. Revenues
Accounting policies adopted for income recognition and measurement
(1) Revenue recognition principle
51Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Since the starting date of the contract the company shall evaluate the contract identifies each individual
performance obligation contained in and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point of time.The performance obligation is defined as fulfillment within a certain period of time if one of the following
conditions is met otherwise it is defined as fulfilled at a certain point in time: * The customer obtains and
consumes the economic benefits brought by the company's performance while the company performs the contract;
* The customer can control the goods under manufacturing or services during the company's performance; *
The goods or services produced during the company's performance have irreplaceable uses and the company has
the right to accumulate for the completed performances during the entire contract period.For obligations performed within a certain period of time the company recognizes revenue in accordance
with the performance progress in that period. If the performance progress cannot be reasonably determined and
the cost incurred is expected to be compensated the revenue shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined. For obligations performed at a certain
point in time revenue shall be recognized at the point when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of the product the company shall consider the
following points: * The company has the current right to receive payment for the product that is the customer
has the current payment obligation for the product; * The company has transferred the legal ownership of the
product to the customer that is the customer has the legal ownership of the product; * The company has
transferred the physical product to the customer that is the customer has physically taken possession of the
product; * The company has transferred the main risks and rewards on the ownership of the product to the
customer that is the customer has obtained the main risks and rewards on the ownership of the product; * The
customer has accepted the product; * Other signs that the customer has obtained control of the product.
(2) Principle of revenue measurement
* The company shall measure revenue based on the transaction price allocated to each individual
performance obligation. The transaction price is the amount of consideration that the company expects to be
entitled to receive due to the transfer of goods or services to customers while does not include payments received
on behalf of third parties and payments expected to be returned to customers.* If there is variable consideration in the contract the company shall determine its best estimate according
to the expected value or the most likely amount but the transaction price including the variable consideration shall
not exceed the accumulated amount that if relevant uncertainty is eliminated will most likely have no significant
reversal.* If there is any significant financing component in the contract the company shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the goods or services.The difference between transaction price and contract consideration shall be amortized through effective interest
method during the contract period. On the starting date of contract if the company expects that the customer will
obtain control of the goods or services and pays the price within one year the significant financing component in
contract shall not be considered.* If the contract contains two or more performance obligations the company shall on date of the contract
allocate the transaction price to each individual obligation item in accordance with the relative proportion of the
separate selling price of promised goods.The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
(3) Specific methods of revenue recognition
(1) Toll service fee income
52Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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: * the total income and total cost of labor
services can be reliably measured; * the economic benefits related to the transaction can flow into the enterprise;
（4） 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: * the total income and total cost of labor
services can be reliably measured; * 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:
* 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.* 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
None
22. 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
53Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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.
23.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
* 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.* 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.* 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.
24Lease
(1) Identification of lease
On the commencement date of the contract the Company as the lessee or lessor evaluates whether the
customers in the contract have the right to obtain almost all economic benefits arising from the use of the
identified assets during the use period and has the right to lead the use of the identified assets during the use
54Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
period. If one party to the contract transfers the right to control the use of one or multiple identified assets within a
certain period of time in exchange for consideration the Company will consider the contract as lease or lease-
included.
（2）The Company as the lessee
On the start date of the lease term the Company recognizes the right-to-use assets and lease liabilities for all
leases except for short-term leases and low-value asset leases that are simplified.The accounting policy of the right-to-use assets is shown in Note V. 25.Lease liabilities are initially measured according to the unpaid lease payment amount on the start date of the
lease term and the present value calculated according to the implied interest rate of the lease or the incremental
borrowing interest rate. The lease payment amount includes: fixed payment amount and substantial fixed payment
amount. If there is lease incentive the related amount of lease incentive shall be deducted; variable lease
payments depending on index or ratio; the exercise price of the option provided that the lessee reasonably
determines that the option will be exercised; payment for exercising the option to terminate the lease provided
that the lease period reflects that the lessee will exercise the option to terminate the lease; and the amount
expected to be paid according to the residual guarantee value provided by the lessee. The interest expense of the
lease liability in each period of the lease term shall be calculated subsequently according to the fixed periodic
interest rate and included in the current profit and loss. Variable lease payments that are not included in the
measurement of lease liabilities are included in the current profits and losses when actually incurred.Short-term lease
Short-term lease refers to the lease with a lease term of no more than 12 months on the start date of the lease
term except for the lease with purchase option.The Company includes the lease payment of short-term lease into the related asset cost or current profit and
loss according to the straight-line method in each period of the lease term.Low-value asset lease
Low-value asset lease refers to the lease in which the value of a single leased asset is less than RMB 100000
when it is brand new.The Company includes the lease payment of low-value assets into the related asset cost or current profit and
loss according to the straight-line method in each period of the lease term.For the lease of low-value assets the Company chooses to adopt the simplified treatment method mentioned
above according to the specific conditions of each lease.
(3) The Company serves as the lessor
The Company when as the lessor recognizes the leases that have substantially transferred all risks and
rewards related to asset ownership as financial leases and other leases except financial leases as operating leases.Accounting methods for operating leases
For the rent in the operating lease the Company recognizes the current profits and losses according to the
straight-line method in each period of the lease term. The initial direct expenses incurred in connection with the
operating lease shall be capitalized allocated on the same basis as the rental income recognition during the lease
term and included in the current profits and losses by stages. The variable lease payments obtained related to
operating leases that are not included in the lease receipts are included in the current profits and losses when they
actually occur.Accounting treatment method of leasing
In financing lease at the beginning of the lease term Japanese companies take the net investment in leasing
as the recorded value of the financing lease receivable and the net investment in leasing is the sum of the
unsecured residual value and the present value of the lease proceeds that have not yet been received on the start
55Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
date of the lease term discounted according to the implied interest rate of the lease. As the lessor the Company
calculates and recognizes the interest income of each period in the lease term according to the fixed periodic
interest rate. The variable lease payments obtained by the Company as the lessor that are not included in the
measurement of net lease investment are recorded into the current profits and losses when they actually occur.The derecognition and impairment of financial lease receivables shall be treated according to the provisions
of Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments
and Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets.
25.The right to use assets
(1) Conditions for recognition of the right-to-use assets
The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased assets
during the lease term.On the start date of the lease term the right-to-use assets are initially measured at cost. The cost includes:
The initial measurement amount of lease liabilities; if there is lease incentive for the lease payment issued on or
before the start date of the lease term the amount related to the lease incentive enjoyed shall be deducted; initial
direct expenses incurred by the Company as the lessee; the estimated costs that the Company as the lessee will
incur for dismantling and removing the leased assets restoring the leased assets' site or restoring the leased assets
to the state agreed in the lease terms. The Company as the lessee recognizes and measures the demolition and
restoration costs in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies. It
makes subsequent adjustments to any remeasurement of lease liabilities.
(2) Depreciation method of right-to-use assets
The Company adopts the straight-line method to accrue depreciation. If the Company as the lessee can be
reasonably determined that the ownership of the leased asset is acquired at the expiration of the lease term it shall
accrue depreciation within the remaining 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 it shall accrue
depreciation within the shorter of the lease term and the remaining service life of the leased asset.
(3) See "27. Impairment of Assets" in "Section V Important Accounting Policies and Accounting Estimates"
for the impairment test method and the provision method for impairment of right-to-use assets.
26. 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.
56Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(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.
27. 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.
57Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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.
28.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable □Not applicable
The content and reasons for the change in accounting policies Approval process Remark
On November 30 2022 the Ministry of Finance issued the No. 16
Interpretation of Accounting Standards for Business Enterprises (No. 31
[2022] Cai Hui).According to the provisions of the No. 16Interpretation for
lease transactions in which the lessee initially recognizes lease liabilities and Adopted by resolution The Company
includes them in right-of-use assets on the beginning date of the lease period by the seventh implements the relevant
the taxable temporary differences and deductible temporary differences meeting of the 10th provisions of the No. 16
arising from the initial recognition of assets and liabilities in the transaction Board of Directors on Interpretation from
shall be in accordance with the relevant provisions of Accounting Standard March 20 2023. January 1 2023.for Business Enterprises No. 18 - Income Tax and other relevant provisions
and the corresponding deferred tax liabilities and deferred tax assets are
recognized separately at the time of the transaction by enterprises.On November 30 2022 the Ministry of Finance issued the No. 16Interpretation of Accounting Standards
for Business Enterprises (No. 31[2022]Cai Hui) (hereinafter referred to as "No. 16Interpretation"). Adopted by
the resolution of the seventh meeting of the 10th Board of Directors of the Company on March 20 2023 the
Company implements the relevant provisions of the No. 16Interpretation from January 1 2023.According to the No. 16Interpretation for a lease transaction in which the lessee recognizes lease liabilities
and includes them in right-of-use assets on the beginning date of the lease period the taxable temporary
differences and deductible temporary differences arising from the initial recognition of assets and liabilities in
the transaction shall be in accordance with the relevant provisions of Accounting Standard for Business
Enterprises No. 18 - Income Tax and other relevant provisions and the corresponding deferred tax liabilities
and deferred tax assets are recognized separately at the time of the transaction by enterprises.The impact of the implementation of the above regulation on the financial statement for the year ended January
1 2023 and for comparable periods is as follows:
1). Impact on consolidated financial statement
In RMB
December 312022/January -June January 12023/January-June 2022
Items Influence number
2022（Before the change） （after change）
Long term share equity
2923368667.842923305042.30-63625.54
investment
Deferred income tax assets 128179543.02 129044978.46 865435.44
Deferred income tax
306806527.72307825916.581019388.86
liability
Retained profit 4698247435.40 4698029354.08 -218081.32
Minority shareholders’
2293019517.512293020019.87502.36
equity
58Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Investment income 162384354.53 162320728.99 -63625.54
Income tax expenses 290240426.63 290224512.53 -15914.10
2).Impact on Parent company financial statement
In RMB
December 312022/January-June 2022 January 12023/January-June 2022 Influence
Items
（（Before the change） （after change） numberLong term share equity
6096479269.506096415643.96-63625.54
investment
Deferred income tax assets 122968519.19 123579950.33 611431.14
Deferred income tax
61217804.4261985198.42767394.00
liability
Retained profit 4723852770.46 4723633182.06 -219588.40
Investment income 791745612.18 791681986.64 -63625.54
Income tax expenses 54008183.42 54001197.13 -6986.29
（2）Significant estimates changes
□Applicable √Not applicable
（3）The information of the adjusting items related to the financial statements at the beginning of the year of
first implementation due to the first implementation of new accounting standards from 2023.Adjustment
description
□Applicable □Not applicable
Note
On November 302022 the Ministry of Finance issued the No. 16Interpretation of Accounting Standards
for Business Enterprises (No. 31[2022]Cai Hui) (hereinafter referred to as "No. 16Interpretation"). According to
the relevant requirements of No.16 the company shall make adjustments to the relevant accounting policies
adopted accordingly.VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
VAT Taxable income 3%5%6%9%13%
The actual payment of turnover tax
City maintenance and construction tax 5%7%
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%
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
None
2.Preferential tax treatment
None
59Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
Items Amount in year-end Balance Year-beginning
Cash 56693.11 43420.71
Bank deposit 5275421651.44 4285350107.61
Among them: Deposits with financial
2824451248.422389294052.10
companies
Other monetary funds 516123.20 515903.01
Interest receivable 8855524.15 4672059.45
Total 5284849991.90 4290581490.78
Other note
1）. As of June 30 2023 the interest receivable is RMB8855524.15 from interest accrued on seven-day call
deposits.
2）.As of June 302023The 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.
60Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Category Book Balance Bad debt provision Book value Book Balance Bad debt provision Book value
Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)
Accrual of bad
debt provision 3143664.00 2.74% 3143664.00 100.00% 3143664.00 2.80% 3143664.00 100.00%
by single
Including：
Accrual of bad
debt provision 111455816.08 97.26% 2593346.23 2.33% 108862469.85 109016714.23 97.20% 647916.67 0.59% 108368797.56
by portfolio
Including：
Aging portfolio 111455816.08 97.26% 2593346.23 2.33% 108862469.85 109016714.23 97.20% 647916.67 0.59% 108368797.56
Other
Total 114599480.08 5737010.23 108862469.85 112160378.23 3791580.67 108368797.56
61Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Accrual of bad debt provision by single：
In RMB
Balance in year-end
Name
Book balance Bad debt provision Withdrawal proportion Reason
Guangdong Taiheng
It is not expected to be
Expressway 3143664.00 3143664.00 100.00% recovered
Development Co. Ltd.Total 3143664.00 3143664.00
Accrual of bad debt provision by portfolio: Provision for bad debts according to the aging portfolio
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Expected credit loss rate (%
Within 1 year 95338891.41
1-2 years 4200258.00 210012.90 5.00%
2-3 years 11916666.67 2383333.33 20.00%
Total 111455816.08 2593346.23
Note：
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 Balance in year-end
Within 1 year 95338891.41
1-2 years 4200258.00
2-3 years 11916666.67
Over 3 year 3143664.00
3-4 years 2077392.00
4-5 years 1066272.00
Subtotal 114599480.08
Bad debt reserves 5737010.23
Total 108862469.85
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Opening Amount of change in the current period
Category Closing balance
balance Accrual Reversed or Write-off Other
62Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
collected
amount
Accrual of bad
debt provision 3143664.00 3143664.00
by single item
Accrual of bad
debt provision 647916.67 1945429.56 2593346.23
by credit risk
Total 3791580.67 1945429.56 5737010.23
Of which the significant amount of the reversed or collected part during the reporting period
None
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Proportion of Amount of
Amount of
Company Name total accounts ending balance
ending balance
receivable % for bad debts
Services Co. Ltd. 68965060.84 60.18%
1083333.330.95%
Guangdong Lulutong Traffic Development
4200258.003.67%210012.90
Co. Ltd.
11916666.6710.40%2383333.33
Guangdong Humen Bridge Co. Ltd. 16631182.47 14.51%
Guangdong Jingzhu Expressway Guangzhu
5818074.995.08%
North Section Co. Ltd.Guangdong Taiheng Expressway 2077392.00 1.81% 2077392.00
Development Co. Ltd. 1066272.00 0.93% 1066272.00
Total 111758240.30 97.53%
（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）Aging analysis
In RMB
Balance in year-end Balance Year-beginning
Aging
Amount Proportion（%） Amount Proportion（%）
Within 1 year 4575446.85 95.37% 7645192.95 98.20%
1-2 years 82300.00 1.71%
2-3 years 140000.00 1.80%
Over 3 years 140000.00 2.92%
Total 4797746.85 7785192.95
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
63Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
None
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
In RMB
Name Relations Amount Aging Reasons for non- Proportion %
with the settlement
Company
Non- No settlement
Guangdong Guanyue Road & Bridge Co. Within 1
Related 2792608.35 conditions have 58.21
Ltd. year
party been reached
Non- No settlement
China Ping An Property Insurance Co. Ltd. Within 1
Related 1444860.00 conditions have 30.12
Guangdong Branch year
party been reached
Non- No settlement
Over 3
Excellence Appraisal Related 140000.00 conditions have 2.92
years
party been reached
Guangzhou Branch of China Mobile Non- No settlement
Within 1
Communications Group Guangdong Co. Related 109830.00 conditions have 2.29
year
Ltd. party been reached
Non- No settlement
Within 1
China Insurance Guangdong Branch Related 77738.12 conditions have 1.62
year
party been reached
Total 4565036.47 95.15
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 45903912.26 1205472.90
Other receivable 10832520.50 33250771.74
Total 56736432.76 34456244.64
（1）Interest receivable
None
（2）Dividend receivable
1) Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television
Networks investment No.1 Limited 1205472.90 1205472.90
partnership enterprise
China Everbright Bank Co. Ltd 44698439.36
Total 45903912.26 1205472.90
2）Significant dividend receivable aged over 1 year
In RMB
Balance in Whether with
Items Aging Reasons for non-recovery
year-end impairment and the
64Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
judgment basis
Guangdong Radio and Television The partnership agreement expires No it can be
Networks investment No.1 Limited 1205472.90 4-5 years and can be recovered after the recovered in the
partnership enterprise extension procedures are completed future
Total 1205472.90
3）The bad debt provision
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified
In RMB
Nature Balance in year-end Balance Year-beginning
Securities trading settlement funds 30844110.43 30844110.43
Petty cash 4489023.58 4017944.81
Highway maintenance expenditure 141431005.33 97749481.71
Deposit 2882022.39 26630350.18
Other 3461474.53 2602476.75
Total 183107636.26 161844363.88
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Bad Debt Reserves Expected credit losses Expected credit loss for the entire duration Total
over the next 12 over life (no credit
(credit impairment
months impairment)
occurred)
Balance as at January
97749481.7130844110.43128593592.14
12023
Balance as at January
12023 in current
This period of
43681523.6243681523.62
provision
Balance as at June
141431005.3330844110.43172275115.76
302023
Loss provision changes in current period change in book balance with significant amount
□Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Book balanceWithin 1 year(Including 1 year） 147426676.53
1-2 years 1410372.20
2-3 years 271243.57
Over 3 years 33999343.96
65Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
3-4 years 1713224.35
4-5 years 26560.70
Over 5 years 32259558.91
Total 183107636.26
3） Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
The provision for bad debts in the current period is RMB43681523.62; and the amount of bad debt reserve
recovered or reversed in the current period is RMB0.00.Where the current bad debts back or recover significant amounts:None
4） Other account receivables actually cancel after write-off
None
5） Other receivables are classified according to the nature
In RMB
Proportion of the
total year end Closing balance
Closing
Name Nature Aging balance of the of bad debt
balance
accounts provision
receivable(%)
Department of
Highway maintenance
Transport of 141431005.33 Within 1 year 77.24% 141431005.33
expenditure
Guangdong Province
Kunlun Securities Securities trading settleme
30844110.43 Over 5 years 16.84% 30844110.43
Co.Ltd nt funds
Guangdong Litong
Real Estates Rent deposit 1816266.94 Within 1 year 0.99%
Investment Co. Ltd.Guangdong Litong
Real Estates Vehicle parking deposit 22980.00 2-3 years 0.01%
Investment Co. Ltd.Guangdong
Expressway Media Advertising revenue 693103.73 Within 1 year 0.38%
Co. Ltd.Guangdong
Expressway Media Water and electricity 2119.81 Within 1 year
Co. Ltd.Guangdong
Provincial Freeway Current account 463491.88 Over 5 years 0.25%
Co.Ltd.Total 175273078.12 95.71% 172275115.76
(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
66Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
5.Other current assets
I n RMB
Items
Year-end balance Year-beginning balance
Advance tax payment 34733.27 1931251.29
VAT retention tax credits 111143.99
Total 34733.27 2042395.28
Other note：
67Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
6. Long-term equity investment
In RMB
Increase/decrease
Investment profit
Closing
Adjustment of Cash bonus or Withdrawal
and loss Changes balance of
Investees Opening balance Additional Negative other profits of Closing balance
recognized under of other Other impairment
comprehensive announced to impairment
investment investment equity provision
the equity income issue provision
method
I. Joint venture
2. Affiliated Company
Zhaoqing
Yuezhao
310209765.8730133975.22340343741.09
Highway Co.Ltd.Guangdong
Jiangzhong
446883150.4045000000.006731118.4916005.854627613.17494002661.57
Expressway Co.Ltd.Ganzhou
Gankang
163154438.009568563.16172723001.16
Expressway Co.Ltd.Ganzhou Kangda
Expressway Co. 246268935.13 20692056.64 266960991.77
Ltd.Shenzhen Huiyan
Expressway Co. 348669767.32 14856921.37 363526688.69
Ltd.
68Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Guoyuan
Securities Co. 987867627.42 22017218.07 12110298.33 2424.19 15522387.30 1006475180.71
Ltd.Guangdong
Yuepu Small
219031496.394689969.97223721466.36
Refinancing Co.Ltd(Note)
Hunnan Lianzhi
Technology 97539945.74 2636209.56 -92400.51 100083754.79
Co. .Ltd.SPIC Yuetong
Qiyuan Chip
Power 4981238.50 -360145.07 4621093.43
Technology Co.Ltd.Shenzhen Garage
Electric Pile
98698677.53-1334752.881391816.0095972108.65
Technology Co.Ltd
Subtotal 2923305042.30 45000000.00 109631134.53 12110298.33 -73970.47 21541816.47 3068430688.22
Total 2923305042.30 45000000.00 109631134.53 12110298.33 -73970.47 21541816.47 3068430688.22
Other note
Guoyuan Securities Co. Ltd. implements the provisions of the "No. 16Interpretation of Accounting Standards for Business Enterprises" in the current period
retrospectively adjusts the financial statement of the previous period and the Company retrospectively adjusts the investment amount in Guoyuan Securities Co.Ltd.at the beginning of the period according to the shareholding ratio.
69Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
7.Other Equity instrument investment
In RMB
Items Closing balance Opening balance
Guangle Expressway Co. Ltd. 775045413.21 779705656.29
Guangdong Radio and Television
Networks investment No.1 Limited 55365396.61 55365396.61
partnership enterprise
China Everbright Bank Co. Ltd. 722232678.08 722232678.08
Huaxia Securities Co. Ltd.（Notes1）
Huazheng Asset Management Co. Ltd.（Notes2）
Total 1552643487.90 1557303730.98
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
Amount of Reasons for Reasons for
other designation as other
Dividend consolidated measured at fair consolidated
Cumulative Cumulative
Items income income value and changes income
gain loss
recognized transferred to included in other transferred to
retained comprehensive retained
earnings income earnings
Non-
Guangle
transactional
Expressway Co. 26551300.00 26697111.48
purpose for
Ltd.shareholding
Guangdong
Radio and
Television Non-
Networks transactional
5365396.61
investment No.1 purpose for
Limited shareholding
partnership
enterprise
Non-
China Everbright transactional
44698439.36204671801.28
Bank Co. Ltd. purpose for
shareholding
Non-
Huaxia Securities transactional
5400000.00
Co. Ltd. purpose for
shareholding
Huazheng Asset Non-
Management Co. 1620000.00 transactional
Ltd. purpose for
70Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
shareholding
Total 71249739.36 236734309.37 7020000.00
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 yuan to 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 1.62 million yuan for impairment in respect of this long-term
equity investment of 1.62 million yuan.
8.Other non-current financial assets
In RMB
Items Closing balance Opening balance
Classified as financial assets measured at
fair value and whose changes are 181400000.00 101400000.00
included in the current profit and loss
Total 181400000.00 101400000.00
Other note：
9. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Items Houses and buildings Land use right Construction in process 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
71Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Enterprise
consolidation
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 12664698.25 2971831.10 15636529.35
II.Accumulated
depreciation
accumulated
amortization
1.Opening balance 10989739.14 1978645.28 12968384.42
2.Increased amount of
73774.5636784.68110559.24
the period
(1)Withdrawal or
73774.5636784.68110559.24
amortization
3.Decreased amount of
the period
（1）Disposal
（2）Other Out
4.Closing balance 11063513.70 2015429.96 13078943.66
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
72Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
4.Closing balance
IV. Book value
1.Closing book value 1601184.55 956401.14 2557585.69
2.Opening book 1674959.11 993185.82 2668144.93
(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
Transportation and other ancillary
Houses and Building 923873.94
facilities Not accreditation
10. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 9552205782.97 10098252638.07
liquidation of fixed assets 6503095.14
Total 9558708878.11 10098252638.07
73Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(1) List of fixed assets
In RMB
Jingzhu
Electricity
Guangfo Guanghui Expressway House and Machinery Transportation
Items Fokai Expressway Total Expressway buildings equipment equipment equipment and
Expressway Guangzhu
other
section
I. Original price
1.Opening balance 1460270190.66 10916901136.52 6824139977.48 5136471234.45 664476347.75 1849144772.30 61642618.63 142268138.54 27055314416.33
2.Increased amount
-659820.18503520.001250706.342009004.663103410.82
of the period
（1）Purchase 49300.00 1250706.34 2009004.66 3309011.00
（2）Transfer of
project under 454220.00 454220.00
construction
(3)Increased of
Enterprise
consolidation
（4）Other -659820.18 -659820.18
3.Decreased amount
14920857.1836073395.95787665.004287225.7156069143.84
of the period
（1）Disposal or
14920857.1836073395.95787665.004287225.7156069143.84
scrap
（2）Disposition
subsidiary
（3）Other out 659820.18
4.Closing balance 1460270190.66 10916901136.52 6824139977.48 5136471234.45 648895670.39 1813574896.35 62105659.97 139989917.49 27002348683.31
II. Accumulated
depreciation
74Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Jingzhu
Electricity
Guangfo Guanghui Expressway House and Machinery Transportation
Items Fokai Expressway Total Expressway buildings equipment equipment equipment and
Expressway Guangzhu
other
section
1.Opening balance 1460270190.66 5857558616.40 4285503165.86 3319516101.13 480209669.57 1409241923.31 47930132.30 92710665.93 16952940465.16
2.Increased amount of
167001611.98205719649.4895478011.1915431227.0851663388.651129558.436195843.97542619290.78
the period
（1）Withdrawal 167001611.98 205719649.48 95478011.19 15431227.08 51663388.65 1129558.43 6195843.97 542619290.78
（2）Other
3.Decreased amount
11290376.0833435034.30734341.754078416.5749538168.70
of the period
(1)Disposal or scrap 11290376.08 33435034.30 734341.75 4078416.57 49538168.70
（2）Disposition
subsidiary
4.Closing balance 1460270190.66 6024560228.38 4491222815.34 3414994112.32 484350520.57 1427470277.66 48325348.98 94828093.33 17446021587.24
III.Impairment
provision
1.Opening balance 2889394.16 1231918.94 4121313.10
2.Increased amount of
the period
(1)Withdrawal
3.Decreased amount
of the period
(1)Disposal or scrap
4.Closing balance 2889394.16 1231918.94 4121313.10
IV. Book value
75Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Jingzhu
Electricity
Guangfo Guanghui Expressway House and Machinery Transportation
Items Fokai Expressway Total Expressway buildings equipment equipment equipment and
Expressway Guangzhu
other
section
1.Closing book value 4892340908.14 2332917162.14 1721477122.13 161655755.66 384872699.75 13780310.99 45161824.16 9552205782.97
2.Opening book 5059342520.12 2538636811.62 1816955133.32 181377284.02 438670930.05 13712486.33 49557472.61 10098252638.07
76Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(2)Temporarily idle fixed assets
In RMB
Accumulated Impairment
Items Original price Book value Remark
depreciation provision
House and
6176339.214767637.501408701.71
buildings
Machinery
2322167.001090248.061231918.94
equipment
(3) Fixed assets leased out from operation lease
None
（4） Details of fixed assets failed to accomplish certification of property
In RMB
Items Book balance Reason
Transportation and other ancillary
House and buildings 145880426.60
facilities，Not accreditation.
（5）liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
House and buildings 3630481.10
Machinery equipment 2638361.65
Transportation equipment 25443.25
Office equipment and other 208809.14
Total 6503095.14
11. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 1287072029.02 753565502.12
Total 1287072029.02 753565502.12
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Reconstruction and
Expansion of Nansha-
Zhuhai section of 1021162978.77 1021162978.77 553543942.17 553543942.17
Guangzhou-Macao
Expressway
Reconstruction and
Expansion of Fokai
208792748.04208792748.04152274277.83152274277.83
Expressway Sanbao to
Shuikou
Jiangxi-Shenzhen
high-speed railway 15664172.98 15664172.98 15664172.98 15664172.98
cross-section
77Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
expansion project
Guangzhou-Shantou
Railway Crossing 15098082.43 15098082.43 10576570.43 10576570.43
project
Boluo Central Station
office and living
6406068.376406068.373768689.373768689.37
facilities renovation
and expansion project
Tanwei Bridge Ship
1749246.001749246.001749246.001749246.00
Collision Project
Other 18198732.43 18198732.43 15988603.34 15988603.34
Total 1287072029.02 1287072029.02 753565502.12 753565502.12
78Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(2) Changes of significant construction in progress
In RMB
Including:
Sourc
Transferr capitalizatio Capitalizati
Other Capitalizatio e
Name of Opening ed to Proportion Project n of on of
Budget Increase decreas End balance n of of
project balance fixed % process interest interest
e interest fundin
assets this rate (%)
g
period
Reconstructi
on and
Expansion of
Nansha-
13735989200.553543942.467619036.1021162978.31820755.821918319.
Zhuhai 7.43% 7.43% 2.91% Other
00176077401
section of
Guangzhou-
Macao
Expressway
Reconstructi
on and
Expansion of
3426210000.0152274277.56518470.2208792748.075533679.32318123.5
Fokai 80.76% 93.00% 3.30% Other
0831431
Expressway
Sanbao to
Shuikou
Jiangxi-
Shenzhen
high-speed
15664172.9100.00
railway 16966900.00 15664172.98 92.32% Other
8%
cross-section
expansion
project
Guangzhou-
Shantou
10576570.4100.00
Railway 21460000.00 4521512.00 15098082.43 70.35% Other
3%
Crossing
project
79Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Boluo
Central
Station
office and
living
17000000.00 3768689.37 2637379.00 6406068.37 37.68% 37.68% Other
facilities
renovation
and
expansion
project
Tanwei
Bridge Ship
50000000.00 1749246.00 1749246.00 3.50% 3.50 Other
Collision
Project
17267626100.737576898.531296397.1268873296.107354435.24236442.
Total
007881591752
80Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(3)Provision for impairment of construction projects in the current period
None
（4）Engineering Materials：None
None
12.Use right assets
In RMB
Machinery Transportation Other
Items House and buildings Total
equipment equipment
I. Original price
1.Opening balance 21487031.29 357112.19 1007747.00 22851890.48
2.Increased amount of the
30634734.72673169.0631307903.78
period
（1）New lease 30634734.72 673169.06 31307903.78
（2）Other
3.Decreased amount of
21487031.2921487031.29
the period
（1）Transfer or hold for
sale
（2）Disposal subsidiary
（3）Other out 21487031.29 21487031.29
4.Closing balance 30634734.72 357112.19 673169.06 1007747.00 32672762.97
II. Accumulated
depreciation
1.Opening balance 18417455.29 142844.88 214034.88 18774335.05
2.Increased amount of the
4785441.3035711.22168292.2653508.725042953.50
period
（1）Withdrawal 4785441.30 35711.22 168292.26 53508.72 5042953.50
（2）Other increase
3.Decreased amount of the
21487031.2921487031.29
period
（1）Disposition
（2）Transfer or hold for
sale
（3）Other out 21487031.29 21487031.29
4.Closing balance 1715865.30 178556.10 168292.26 267543.60 2330257.26
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
（1）Withdrawal
（2）Other increase
3.Decreased amount of the
period
（1）Disposition
（2）Transfer or hold for
sale
4.Closing balance
81Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Machinery Transportation Other
Items House and buildings Total
equipment equipment
IV. Book value
1.Closing book value 28918869.42 178556.09 504876.80 740203.40 30342505.71
2.Opening book value 3069576.00 214267.31 793712.12 4077555.43
13. Intangible assets
(1) List of intangible assets
In RMB
Non-patented The Turnpike
Items Land use right Patent right Total
technology franchise
I. Original price
1.Opening balance 2701738.76 38254516.12 318348741.86 359304996.74
2.Increased amount of the
83247.9683247.96
period
(1) Purchase 83247.96 83247.96
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of
11005016.4011005016.40
the period
（1）Disposal 11005016.40 11005016.40
（2）Government
subsidies cut
（3）Disposal subsidiary
4.Closing balance 2701738.76 27332747.68 318348741.86 348383228.30
II.Accumulated
amortization
1.Opening balance 2366543.74 32357841.52 77808140.04 112532525.30
2.Increased amount of the
7705.621003484.4711794307.9812805498.07
period
(1) Withdrawal 7705.62 1003484.47 11794307.98 12805498.07
3.Decreased amount of
11005016.4011005016.40
the period
（1）Disposal 11005016.40 11005016.40
（2）Disposal subsidiary
82Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Non-patented The Turnpike
Items Land use right Patent right Total
technology franchise
4.Closing balance 2374249.36 22356309.59 89602448.02 114333006.97
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 327489.40 4976438.09 228746293.84 234050221.33
2.Opening book value 335195.02 5896674.60 240540601.82 246772471.44
At the end of this period there is no intangible assets formed through the company's internal research and At the
end of this period the intangible assets formed through the company's internal research and development
accounted for 0.00% of the balance of intangible assets
⑵Details of Land use right failed to accomplish certification of property
In RMB
Reason for not obtaining the title
Items Book value
certificate
Gonghe Town Land 327489.40 Reasons left over from history
14. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
9858323.332464580.847912893.771978223.45
provisions
Deductible loss 25253836.36 6313459.09 363420806.96 90855201.74
Asset appraisal
appreciation
106518448.6826629612.17120375258.2430093814.56
depreciation and
amortization
Deferred income 15980161.74 3995040.44 21009212.70 5252303.27
83Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Operation lease 29736108.16 7434027.04 3461741.75 865435.44
Total 187346878.27 46836719.58 516179913.42 129044978.46
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in the fair
value of other equity 236734309.37 59183577.34 241394552.45 60348638.11
instruments
Deductible temporary
differences in the
916831006.67229207751.66965577119.54241394279.90
formation of asset
impairment
Difference of
amortization method of 11048885.57 2762221.40 9854438.83 2463609.71
franchise of toll road
Changes in the fair
value of trading 10400000.00 2600000.00 10400000.00 2600000.00
financial assets
Tax accounting
difference of use right 30342505.71 7585626.43 4077555.45 1019388.86
asset
Tax accounting
differences of projects 18136690.84 4534172.71
under construction
Total 1223493398.16 305873349.54 1231303666.27 307825916.58
(3) Deferred income tax assets or liabilities listed by net amount after off-set
None
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 37864110.43 37864110.43
Deductible loss 21327524.22 18536190.43
Total 59191634.65 56400300.86
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
20233129535.723129535.72
20243618779.073618779.07
20253571100.293571100.29
20263889857.993889857.99
20274326917.364326917.36
20282791333.79
Total 21327524.22 18536190.43
84Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
15 .Other non-current assets
In RMB
Balance in year-end Balance Year-beginning
Items Book balance Provision Book value Book balance Provision Book value
for for
devaluation devaluation
Prepaid engineering fees 57853104.62 57853104.62 6258116.72 6258116.72
Prepaid business tax 1915476.96 1915476.96 2116662.12 2116662.12
Total 59768581.58 59768581.58 8374778.84 8374778.84
Other note：
Note
16. Short-term Borrowing
（1）Short-term Borrowing
In RMB
Items Balance in year-end Balance Year-beginning
Credit Borrowing 430000000.00
Interest payable not due 387597.20
Total 430387597.20
Note：
(2) Situation of Overdue Outstanding Short-Term Borrowing
None
17.Account payable
（1） List of account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 35191561.22 106284617.63
1-2 years（including2 years） 48777577.09 15315242.17
2-3 years（including 3 years） 9891578.33 2693624.18
Over 3 years 73471862.24 73495298.79
Total 167332578.88 197788782.77
（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
17466700.00 Unsettled
Management Dept
Heshan Land and resources Bureau 9186893.60 Unsettled
Poly Changda Engineering Co. Ltd. 5415553.30 Unsettled
Foshan Chancheng District Zhang Cha
4626817.32 Unsettled
Sub-district Office
Total 67203562.43
85Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
18. Prepayment received
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 2169988.91 1913639.06
1-2 years（Including 2 years） 1082898.18 805117.91
Total 3252887.09 2718756.97
（2）Significant payable aging more than 1 year
In RMB
Items Balance in year-end Reason
Hebei Jianhong Power Engineering Co.
1082898.18 Unsettled
Ltd.Total 1082898.18
19. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning Increase in the current Decrease in the current
Year-end balance
balance period period
I. Short-term
20660328.60186686717.85187605961.9419741084.51
compensation
II.Post-
employment benefits -
32786473.0931308371.021478102.07
defined contribution pl
ans
III. Dismissal benefits 1315216.92 1315216.92
Total 20660328.60 220788407.86 220229549.88 21219186.58
（2）Short-term Remuneration
In RMB
Items Year-beginning Increase in the current Decrease in the
Year-end balance
balance period current period
1.Wages bonuses allowances
465063.49136477235.72136477235.72465063.49
and subsidies
2.Employee welfare 8521719.59 8521719.59
3. Social insurance premiums 17057493.93 17032657.59 24836.34
Including ：Medical
10213027.9210189709.4023318.52
insurance
Work injury insurance 506588.92 505071.10 1517.82
Other 6337877.09 6337877.09
4.Public reserves for housing 19702163.00 19702163.00
86Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
5.Union funds and staff
17883045.404329599.115273679.5416938964.97
education fee
8.Other 2312219.71 598506.50 598506.50 2312219.71
Total 20660328.60 186686717.85 187605961.94 19741084.51
（3）Defined contribution plans listed
In RMB
Balance Year- Increase in this period Payable in this period Balance in year-end
Items
beginning
1. Basic old-age
19582722.7819540840.3841882.40
insurance premiums
2.Unemployment
791820.39789225.182595.21
insurance
3.Enterprise annuity
12411929.9210978305.461433624.46
payment
Total 32786473.09 31308371.02 1478102.07
20. Tax Payable
In RMB
Items Balance in year-end Balance Year-beginning
VAT 12628710.29 9619067.45
148023789.1858889929.38
Enterprise Income tax
Individual Income tax 550351.13 2552347.21
City Construction tax 788554.59 633666.06
Education subjoin 383867.08 306387.03
Locality Education subjoin 237270.58 185315.25
Vehicle and vessel tax
Land use tax 523762.40
Property tax 504597.91 60799.58
Stamp tax 35981.87 60261.45
Total 163676885.03 72307773.41
21.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend payable 920558170.17 59994517.46
Other account payable 124167228.26 131173042.77
Total 1044725398.43 191167560.23
（1）Interest payable
None
（2）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 920558170.17 25694517.46
87Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Dividends payable- Guangdong
11550000.00
Provincial Freeway Co.Ltd.Dividends payable-Guangdong Zhujiang
21000000.00
Highway and Bridge Investment Co. Ltd
Dividends payable-HZCI 1750000.00
Total 920558170.17 59994517.46
Other explanations including significant dividends payable that have not been paid for more than 1 year it shall
disclose the reasons for non-payment:
Note: Including significant unpaid dividends payable over one year the unpaid reason shall be disclosed:
Final dividend payable 25693148.24 yuan for more a year in unpaid dividends to shareholders over the year
was 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 information is incorrect resulting in failure to pay a dividend or refund.
（3）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Year-end balance Year-Beginning balance
Estimated project cost 33034549.95 40097538.05
Deposit warranty and security deposit 64237381.43 64205413.61
Other 26895296.88 26870091.11
Total 124167228.26 131173042.77
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Poly Changda Highway Engineering Co.
20101922.48 The settlement conditions are not met
Ltd.Yayao to Xiebian extension 12499448.48 The settlement conditions are not met
Guangdong Guanyue Road & Bridge
7954762.80 The settlement conditions are not met
Co. Ltd.CCCC First Navigation Engineering
6604491.16 The settlement conditions are not met
Bureau Co. Ltd.China Railway Tunnel Group Co. Ltd. 5711835.48 The settlement conditions are not met
Total 52872460.40
22. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 145147041.19 72870082.19
Payable Bonds due within 1 year 695329608.09 40679999.99
Long-term payable due within 1 year 495283.01 944339.62
Lease liabilities due within 1 year 10151743.03 2517045.16
Total 851123675.32 117011466.96
23.Other current liabilities
In RMB
88Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Items Balance year-end Year-beginning balance
Tax to be rewritten 169097.00 600639.56
Entrusted loans and interest 500395833.33 500122916.67
Total 500564930.33 500723556.23
24. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loans 14525000.00
Credit loan 6008445000.00 5619259650.00
Interest payable when not due 5421991.19 5680782.19Less:Long-term loans due within one year（Note-145147041.19-72870082.19V.22）
Total 5868719950.00 5566595350.00
25.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 1428850956.61 1428381232.94
Interest payable when not due 15625753.43 40679999.99Less:Long-term loans due within one year（Note-695329608.09-40679999.99V.22）
Total 749147101.95 1428381232.94
89Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
（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
The Overflow
Withdraw Pay in current Closing
Name of the bond Book value Issue date Period Issue amount Opening balance current discount
interest at par period balance
issue amount
19 Guangdong
2019.3.1-
Expressway 680000000.00 2019.2.27 680000000.00 702279764.69 13488219.16 -227377.67 27200000.00 688795361.52
2024.3.1
MTN001
20 Guangdong
2020.3.17-
Expressway 750000000.00 2020.3.13 750000000.00 766781468.24 11157534.28 -242346.00 22500000.00 755681348.52
2025.3.17
MTN001
Less: Bonds
payable due within
-40679999.99695329608.09one year（NoteVII.22）
Total 1430000000.00 1428381232.94 24645753.44 -469723.67 49700000.00 749147101.95
90Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
26.Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
Long-term lease liabilities 30471738.14 2709232.95
Less：Financing costs are not
1463771.3841203.32
recognized
Less:Long-term loans due within one
10151743.032517045.16
year(Note V.22)
Total 18856223.73 150984.47
27. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 2022210.11 2517493.12
Total 2022210.11 2517493.12
(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
Medium term bill underwriting fee 495283.01 1439622.63
Less:Long-term loans due within one
495283.01944339.62
year(Note V.22)
Total 2022210.11 2517493.12
28. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Cause
Government
21009212.70185000000.005029050.96200980161.74
subsidy
Lease income 40073768.93 3804705.42 36269063.51
Total 61082981.63 185000000.00 8833756.38 237249225.25
Details of government subsidies：
In RMB
Amount
Amount Other Asset-
of cost
transferred income related
Beginning of New subsidy in deducted Other
Items to non- recorded in End of term or
term current period in the changes
operational the current income-
current
income period related
period
Cancellation 15907669.2 Related
20931143.875023474.62
of 5 to asset
91Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Expressway
Provincial
Toll Station
Project
Charging
Related
infrastructure 78068.83 5576.34 72492.49
to asset
rewards
Qijiang New
South city
185000000. Related
interchange 185000000.00
00 to asset
construction
project
29. Stock capital
In RMB
Changed（+，-）Balance Year- Issuance
Bonus Capitalizatio Balance in year-end
beginning of new Other Subtotal
shares n of public
share
reserve
Total of
2090806126.002090806126.00
capital shares
30. Capital reserves
In RMB
Year- beginning Increase in the current Decrease in the
Items Year-end balance
balance period current period
Share premium 508711146.99 508711146.99
Other capital reserves 234422410.04 18430.04 92400.51 234348439.57
Total 743133557.03 18430.04 92400.51 743059586.56
- The situation of change in the current capital reserve is as follows:
1. The joint venture Guangdong Jiangzhong Expressway Co. Ltd. recognized the special reserve in the
current period and the Company adjusted the book value of long-term equity investment according to the
shareholding ratio resulting in an increase in the capital reserve of 16005.85 yuan.
2. The capital reserve of Guoyuan Securities Co. Ltd. an associated enterprise has changed in the current
period.
3. Hunan Lianzhi Technology Co. Ltd. an associate of the subsidiary Yuegao Capital (Holdings)
Guangzhou Co. Ltd. repurchased the equity of other shareholders resulting in a change in the long-term equity
investment of the subsidiary accounted for by the equity method and reducing the capital reserve by 92400.51
yuan.
92Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
31. Other comprehensive income
In RMB
Amount of current period
Less：Amount transferred Less：Prior period
into profit and loss in the included in other After-tax
Year-beginning Amount After-tax Year-end
Items current period that composite income Less：Income attribute to
balance incurred before attribute to the balance
recognied into other transfer to retained tax expenses minority
income tax parent company
comprehensive income in income in the shareholder
prior period current period
1.Other comprehensive
income will be reclassified
181045914.34-4660243.08-1165060.77-3495182.31177550732.03
into income or loss in the
future
Changes in fair value of
investments in other equity 181045914.34 -4660243.08 -1165060.77 -3495182.31 177550732.03
instruments
2.Other comprehensive
income reclassifiable to
-10412257.6712110298.3312110298.331698040.66
profit or loss in subsequent
periods
Including：Share of other
comprehensive income of
the investee that cannot be
-10412257.6712110298.3312110298.331698040.66
transferred to profit or loss
accounted for using the
equity method
Total of other
170633656.677450055.25-1165060.778615116.02179248772.69
comprehensive income
93Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
32. Surplus reserve
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus
1373056469.021373056469.02
reserve
Total 1373056469.02 1373056469.02
33. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in
4698029354.084760618543.78
last period end
Adjust the total undistributed profits at
510117.60
the beginning of the period
After adjustments: Retained profits at the
4698029354.084761128661.38
period beginning
Add：Net profit belonging to the owner
885644187.991276341322.98
of the parent company
Less: Statutory surplus reserve 147681138.46
Common stock dividend payable 894865021.93 1191759491.82
Retained profit at the end of this term 4688808520.14 4698029354.08
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 -218081.32.
(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 .
34.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 2310707369.57 726266759.50 2022637008.32 682014744.35
Other operation 29729405.51 14403550.99 34783801.36 14128978.15
Total 2340436775.08 740670310.49 2057420809.68 696143722.50
35. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 4414027.47 3906433.43
94Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Education surcharge 2126579.28 1870308.46
Property tax 579768.50 1026637.79
Land use tax 523762.40 523762.40
Vehicle use tax 42143.75 43285.07
Stamp tax 136313.89 132962.51
Business tax 185247.66 185247.66
Locality Education surcharge 1414531.04 1243683.98
Total 9422373.99 8932321.30
36. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 55924172.80 58799341.19
Depreciation of fixed assets 4754414.20 6814076.61
Intangible assets amortization 754955.47 953099.24
Low consumables amortization 305671.18 259600.97
Rental fee and Management fee 5680829.07 6027123.06
Business fee 276707.37 282100.73
Office expenses 3253204.38 4275751.24
Travel expenses 299557.29 114358.72
Consultation expenses 100000.00
The fee for hiring agency 2756001.59 3376068.01
Repairs cost 152240.53 189544.16
Vehicle fee 1353271.68 1304983.31
Listing fee 143396.22 11320.75
Information cost and maintenance fee 559255.14 961765.47
Other 3810168.79 2304133.58
Total 80023845.71 85773267.04
37.R& D expenses
In RMB
Items Amount of this period Amount of last period
Wage 81651.82 945204.60
Material cost 412566.35
Depreciation 5521.90
Low consumables amortization 885.00
Office expenses 4318.22
Repairs cost 391.15
Total 81651.82 1368887.22
38.Financial expenses
In RMB
Items Amount of this period Amount of last period
95Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Interest expenses 109161060.69 123517238.10
Deposit interest income（-） -18067700.31 -36907508.27
Exchange Income and loss（Gain-）
Bank commission charge 56504.09 84179.23
Other 3226.00 608147.56
Total 91153090.47 87302056.62
39.Other gains
In RMB
Items Amount of this period Amount of last period
Government Subsidy-Cancel the Special
Subsidy for Provincial Toll Station 5023474.62 5023474.62
Project of Expressway
Government Subsidy- Charging
5576.34
infrastructure incentive funds
Government subsidy-- Jiujiang Bridge
structure health monitoring system
600000.00
optimization and upgrade of vehicle
purchase tax subsidy funds
Government subsidy- Stable job
25500.00
subsidies - Expansion subsidy
Government subsidy- Stable job
1250935.46
subsidies
Government subsidy-- Enterprises with
1074875.00
industrial training subsidies
Maternity allowance 577849.71 435454.91
Withholding and remitting enterprise
39147.73156133.38
prepaid income tax fees
Withhold personal income tax handling
164638.95159544.67
fee refund
Veterans' VAT reduction and exemption 13786.43 15009.81
Withholding and remitting enterprise
62924.53
prepaid income tax fees
Total 6449973.78 8178352.38
40. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by
109631134.53101561222.92
equity method
Disposition of the investment income
generated by the long-term equity 13564262.33
investment
Investment income of trading financial
601253.78
assets during the holding period
Dividends earned during the holding
period on investments in other equity 71249739.36 47286243.74
instrument
Other -80000.00 -91000.00
Total 181402127.67 162320728.99
96Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
41. Credit impairment losses
In RMB
Items Amount of this period Amount of last period
Impairment losses on other receivable -43681523.62
Impairment losses on account receivable -1945429.56
Total -45626953.18
Other note
42. Asset impairment loss
In RMB
Items Amount of this period Amount of last period
Total disposal gains or losses of non-
463363.89
current assets
Including: Loss on impairment of fixed
463363.89
assets
Total 463363.89
43. Non-Operation income
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & losses
Non-current assets are
damaged and scrapped for 237412.50
profit
Among them: Fixed assets 237412.50
Insurance claim income 967952.70 4141948.49 967952.70
Road property claim income 1126095.64 1419966.31 1126095.64
Other 54244.51 22304.35 54244.51
Total 2148292.85 5821631.65 2148292.85
44. Non-Operation expenses
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and
losses
Non-current assets are
damaged and scrapped for 15753.62 252895.85 15753.62
profit
Road rehabilitation
176042.002624379.66176042.00
expenditure
Fine 570.97 2254.33 570.97
Other 47856.00 76129.55 47856.00
Total 240222.59 2955659.39 240222.59
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 287619631.20 246703707.49
97Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Deferred income tax expense 81420752.61 43520805.04
Total 369040383.81 290224512.53
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total 1563218721.13
Current income tax expense accounted by tax and relevant
390804680.28
regulations
Influence of income tax before adjustment 248156.86
Influence of non taxable income -17962748.29
Impact of non-deductible costs expenses and losses 10334504.26
Effect of deductible losses from using previously unrecognized
-14384209.30
deferred income tax assets
Income tax expense 369040383.81
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 14000060.50 20528520.76
Unit current account 40874222.93 46907015.63
Qijiang new city south interchange
185000000.00
construction subsidy funds
Total 239874283.43 67435536.39
（2）Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 10883695.76 14342965.21
Unit current account 27999921.65 32790555.31
Total 38883617.41 47133520.52
(3)Cash receivable related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Government infrastructure investment
38470400.00
subsidies
Interest income from special borrowing 1460847.67
Total 1460847.67 38470400.00
（4）Cash paid related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Issuance fee of medium-term notes 1001869.75 1001869.75
Cash paid for the lease liabilities 7325653.27 5240644.14
Total 8327523.02 6242513.89
98Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
47. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current Amount of previous
period period
I. Adjusting net profit to cash flow from operating activities
Net profit 1194178337.32 1061504459.99
Add：Credit loss preparation
Depreciation of fixed assets oil and gas assets and consumable biological
542423799.22479906745.78
assets
Depreciation of Use right assets 5042953.50 4910817.45
Amortization of intangible assets 12833960.75 11410277.66
Amortization of Long-term deferred expenses
Loss on disposal of fixed assets intangible assets and other long-term
-463363.89
deferred assets
Fixed assets scrap loss 15753.62 15483.35
Loss on fair value changes
Financial cost 109276885.58 123517238.10
Loss on investment -181402127.67 -162320728.99
Decrease of deferred income tax assets 82208258.88 55802962.55
Increased of deferred income tax liabilities -787506.27 -12282157.51
Decrease of inventories
Decease of operating receivables -82590730.82 -46196406.71
Increased of operating Payable 287090654.41 -72254061.48
Provision for credit losses 45626953.18
Net cash flows arising from operating activities 2013917191.70 1443551266.30
II. Significant investment and financing activities that without cash flows:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Financing of fixed assets leased
3．Movement of cash and cash equivalents：
Ending balance of cash 5274773267.75 4042994649.07
Less: Beginning balance of cash equivalents 4284688231.33 2955183190.55
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent 990085036.42 1087811458.52
99Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
（2）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
5274773267.754284688231.33
Cash
56693.1143420.71
Of which: Cash in stock
Bank savings could be used at any time 5274200451.44 4284128907.61
Other monetary capital could be used at any
516123.20515803.01
time
Balance of cash and cash equivalents at the
5274773267.754284688231.33
period end
48. The assets with the ownership or use right restricted
In RMB
Items Book value at the end of the period Restricted reason
Land reclamation funds in the fund
Monetary fund 1221200.00
escrow account
Total 1221200.00
VIII. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Shareholding Ratio
Main Places of Registration Nature of Obtaining
Name of Subsidiary (%)
Operation Place Business Method
direct indirect
Under the
same
Expressway
Guangfo Expressway Co. Ltd. Guangzhou Guangzhou 75.00% control
Management
business
combination
Under the
same
Expressway
Guanghui Expressway Co. Ltd. Guangzhou Guangzhou 51.00% control
Management
business
combination
Under the
same
Jingzhu Expressway Guangzhu Expressway
Zhongshan Guangzhou 75.00% control
Section Co.Ltd. Management
business
combination
Yuegao Capital Investment
Guangzhou Guangzhou 100.00% Establishment
Investment(Guangzhou)Co. Ltd. management
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
100Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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 note
(2) Important Non-wholly-owned Subsidiary
In RMB
Shareholding
Profit or Loss Owned by Dividends Distributed to
Ratio of Equity Balance of the
the Minority the Minority
Name of Subsidiary Minority Minority Shareholders
Shareholders in the Shareholders in the
Shareholders in the End of the Period
Current Period Current Period
(%)
Guangfo Expressway Co. Ltd. 25.00% -10159876.83 54191863.16
Guangdong Guanghui
49.00%248592282.67133205174.082090255570.22
Expressway Co. Ltd.Jingzhu Expressway Guangzhu
25.00%70101743.4988470000.47323901561.73
Section Co.Ltd.Holding proportion of minority shareholder in subsidiary different from voting proportion
None
101Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance
Name
Current assets Non- current assets Total assets Current Liabilities Non- current liabilities Total liabilities
Guangfo Expressway Co. Ltd. 227792721.22 15224557.98 243017279.20 26249826.57 26249826.57
Guangdong Guanghui
1878332015.302744797728.054623129743.35203516148.58153785900.44357302049.02
Expressway Co. Ltd.Jingzhu Expressway Guangzhu
913861914.062932963715.033846825629.091880885837.14670333545.032551219382.17
Section Co.Ltd.In RMB
Year-beginning balance
Name
Current assets Non- current assets Total assets Current Liabilities Non- current liabilities Total liabilities
Guangfo Expressway Co. Ltd. 270445990.72 15689069.15 286135059.87 28728099.92 28728099.92
Guangdong Guanghui
1463091700.932980427023.344443518724.27242093924.47171081000.56413174925.03
Expressway Co. Ltd.Jingzhu Expressway Guangzhu
1097313535.802536899303.013634212838.812477933314.32141080251.542619013565.86
Section Co.Ltd.In RMB
Amount of current period Amount of previous period
Name Total Total Cash flows from Business Cash flows from
Business income Net profit Comprehensive Net profit Comprehensive
operating activities income operating activities
income income
Guangfo Expressway
1472953.28-40639507.32-40639507.32-2029459.2566566527.4538386003.1238386003.12200857877.57
Co. Ltd.Guangdong Guanghui
1024822529.29507331189.13507331189.13777984620.05893298497.64469177363.59469177363.59591588578.50
Expressway Co. Ltd.Jingzhu Expressway 574690822.31 280406973.97 280406973.97 495884944.24 452938785.68 193096571.04 193096571.04 271398716.46
102Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Guangzhu Section
Co.Ltd.Other note：
103Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(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
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
Accounting
treatment of the
Main investment of joint
Registration Proportion
Name operating Business nature venture or
place associated
place
enterprise
Directly Indirectly
Zhaoqing Yuezhao Highway Co. Zhaoqing Zhaoqing Expressway
25.00% Equity method
Ltd. Management
Guangdong Guangdong
Shenzhen Huiyan Expressway Expressway
Shenzhen Shenzhen 33.33% Equity method
Co. Ltd. Management
Guangdong Jiangzhong Expressway
Zhongshan Zhongshan 15.00% Equity method
Expressway Co. Ltd. Management
Ganzhou kangda Expressway Co. Expressway
Gangzhou Ganzhou 30.00% Equity method
Ltd. Management
Ganzhou Gankang Expressway Expressway
Gangzhou Ganzhou 30.00% Equity method
Co. Ltd. Management
Guangdong Yuepu Small Hand all kinds of
Guangzhou Guangzhou 15.48% Equity method
Refinancing Co. Ltd small loans
Guangyuan Securities Co. Ltd. Hefei Hefei Security business 2.37% Equity method
Research and
Hunan Lianzhi Technology Co.Changsha Changsha experimental 12.53% Equity method
Ltd.development
SPIC Yuetong Qiyuan Chip New Energy
Guangzhou Guangzhou 5.00% Equity method
Power Technology Co. Ltd service
Software and
Shenzhen Garage Electric Pile
Shenzhen Shenzhen Information 17.40% Equity method
Technology Co. Ltd
technology
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
None
104Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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.，Yuepu Small Refinancing Co.Ltd.and Hunan Lianzhi Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.and
Shenzhen Garage Electric Pile Technology Co.Ltd. holds 20% of the voting rights but has the power to participate in making decisions on their financial and o
perating decisions and therefore deemed to be able to exert significant influence over the investee.
(2) Main financial information of significant joint venture
None
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of current Balance at the end of last year/ Amount
period of previous period
Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.Current assets
Non-current assets
Total assets 136259314336.23 130765208142.95
Current liabilities
Non-current Liabilities
Total liabilities
Minority Shareholders’ Equity
Shareholders’ equity attributable to
33709197542.7532927214909.60
shareholders of the parent
Pro rata share of the net assets calculated 799379548.17 780835620.42
Adjustment items
--Goodwill 207095632.54 207095632.54
-- Internal transactions did not achieve
profits
--Other
The book value of equity investments in j
1006475180.71987931252.96
oint ventures
Fair value of equity investment of
associated enterprises with open 674706434.64 655044744.06
quotation
Buinsess incme 3110841516.79 2474031036.38
Net profit 914347343.11 749499017.55
Net profit from terminated operations
Other comprehensive income 510710079.37 -35288230.26
Total comprehensive income 1425057422.48 714210787.29
Dividends received from associates durin
15522387.3018626864.76
g the year
105Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Joint venture：
Total amount of the pro rata calculation
of the following items
Associated enterprise：
Total book value of the investment 2061955507.51 1935437414.88
Total amount of the pro rata calculation
of the following--Net profit ms
--Net profit 87613916.46 82950868.66
--Total comprehensive income 87613916.46 82950868.66
(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
6.Other note
None
IX. 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.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
106Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
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. 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 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
As of June 302023 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 "7 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.X. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
107Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Closing fair value
Items Fir value measurement Fir value measurement Fir value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
--------
measurement
(I) Trading financial assets 181400000.00 181400000.00
（2）Equity instrument
181400000.00181400000.00
investment（II）Other equity
722232678.08830410809.821552643487.90
instrument investment
Total assets continuously
722232678.081011810809.821734043487.90
measured at fair value
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 June 302023 of 3.07 yuan the final calculation of fair value was
722232678.08 yuan.
3. Fair value of financial assets and liabilities not measured at fair value The valuation techniques
adopted and the qualitative and quantitative information of important parameters for continuous and
non-continuous level 3 fair value measurement items
Items Fair value as of June 302032 Valuation technology Unobservable input value
Hire a third party for evaluation or enjoy the
Unlisted equity
1011810809.82 share of the net book assets of the investee based
investment
on the shareholding ratio
4. Fair value of financial assets and liabilities not measured at fair value
The Company's financial assets and liabilities measured in amortized cost mainly include: accounts
receivable other receivables contract assets short-term loans accounts payable other payables non-current
liabilities due within one year long-term loans bonds payable and long-term payables.There is no significant difference between the book value of financial assets and liabilities not measured at
fair value and the fair value.XI. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent The parent
Redistricted company of the company of the
Name Registered address Nature
capital Company's Company’s vote
shareholding ratio ratio
Equity
management
Guangdong
traffic
communication Guangzhou 26.8 billion yuan 24.56% 50.12%
infrastructure
Group Co. Ltd
construction and
railway project
108Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
operation
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 June 30 2023Registered 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 VIII(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the VI-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
Ganzhou Gankang Expressway Co. Ltd. Associated enterprises of the Company
Guangdong Jiangzhong Expressway Co. Ltd. Associated enterprises of the Company
4. Other Related parties
Name Relation with the Company
Guangdong East Thinking Management Technology
Fully owned subsidiary of the parent company
Development Co. Ltd.Guangdong Expressway Media Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Technology Investment 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 Communications Testing Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Development Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Technology Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Property Investment Co. Ltd. Fully owned subsidiary of the parent company
109Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Guangdong Union Electron Service Information technology
Fully owned subsidiary of the parent company
Co. ltd.Guangdong Lulutong Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Luoyang Expressway Co. Ltd. Fully owned subsidiary of the parent 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 Group Finance Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Tongyi Expressway Service Area Co. Ltd Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Rescue Co. Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Asphalt Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Traffic Development Co. Ltd. Fully owned subsidiary of the parent company
Poly Changda Engineering Co. Ltd. Shares of parent company
Guangdong Communication Planning & Design Institute Co.Shares of parent company
Ltd.Guangdong Changda Road Conservation Co. Ltd. Shares of parent company
Guangzhou Aitesi Communication equipment Co. Ltd. Associated enterprises controlled by the same parent company
Guangdong Jingzhu Expressway Guangzhu North Section Co.Associated enterprises controlled by the same parent company
Ltd.Guangdong Feida Traffic Engineering Co. Ltd. Associated enterprises controlled by the same parent company
Guangdong Road Network Digital Media Information
Fully owned subsidiary of the parent company
Technology Co. Ltd
Hunan Lianzhi Technology Co. Ltd. A wholly owned subsidiary of the Company
Guangzhongjiang Expressway Project Management Dept Managed by 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
Amount of Amount of Over the
Content of related Amount of last
Related parties current period previous trading limit
transaction period
period or not
1. Operating costs
Guangdong Union electronic
Service 13229622.13 12021733.95
services co. Ltd.Guangdong Yueyun Traffic
Rescue service fee 1803701.00 494700.00
Rescue Co. Ltd.Daily maintenance fee of
Guangdong Xinyue Traffic
the electromechanical 1767361.32
Investment Co. Ltd.system
Guangdong Litong
Remote monitoring and
Technology Investment Co. 499250.40
technical support service fee
Ltd.Guangdong Humen Bridge
Electric charge 330692.01 310411.02
Co. Ltd.
110Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Amount of Amount of Over the
Content of related Amount of last
Related parties current period previous trading limit
transaction period
period or not
Guangdong Hualu Traffic
Service 306348.00
Technology Co. Ltd.Poly Changda Engineering
service 242574.00 11772757.00
Co. Ltd.Guangdong Tongyi
Expressway Service Area Co. Labour protection 176962.71 40808.70
Ltd
Guangdong Feida Traffic Mechanical and electrical
2003201.04
Engineering Co. Ltd. daily maintenance payment
Guangdong Communication
Planning & Design Institute Project 178243.00
Co. Ltd.Guangdong Lulutong Co. Ltd. Maintenance Project funds 52598.00
Guangdong Jingzhu
Expressway Guangzhu North Labour protection 8551.20
Section Co. Ltd.Guangzhou Aitesi
Maintenance of charging
Communication Equipment 2400.00
facilities
Co. Ltd.Subtotal of operating costs 18356511.57 26885403.91
2. Financial expenses
Guangdong Communication
Deposit interest income -9965887.73 -24475843.25
Group Finance Co. Ltd.Guangdong Communication Borrowing Interest
6590997.215112347.24
Group Finance Co. Ltd. expresses
Guangdong Communication
Commission charge 3785.00 920.00
Group Finance Co. Ltd.Guangdong Communication
Interest 7402083.32
Group Co. Ltd.Subtotal of Financial expenses 4030977.80 -19362576.01
3. Administrative expenses
Guangdong Tongyi
Expressway Service Area Co. Labour protection 74591.29
Ltd
Guangdong Union electronic
maintenance fee 288500.00
services co. Ltd.Guangdong East Thinking
Management Technology OA Maintenance，Service 10000.00Development Co. Ltd.Subtotal of management
74591.29298500.00
expenses
4. Non operating expenses
Expenditure for repairing
Poly Changda Engineering
damaged civil engineering 1.00 1009397.00
Co. Ltd.facilities
Subtotal of Non operating
1.001009397.00
expenses
111Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Amount of Amount of Over the
Content of related Amount of last
Related parties current period previous trading limit
transaction period
period or not
5. Construction in progress
Guangdong Communication
Planning & Design Institute Purchase assets 5422739.00 5973981.00
Co. Ltd.Guangdong Communications
Purchase assets 2028475.00
Testing Co. Ltd.Guangdong Highway
Purchase assets 480000.00 9089990.48
Construction Co. Ltd.Poly Changda Engineering
Purchase assets 26630344.47
Co. Ltd.Guangdong Xinyue Traffic
Purchase assets 6127813.56
Investment Co. Ltd.Guangdong Hualu Traffic
Purchase assets 907894.50
Technology Co. Ltd.Subtotal of Construction in
7931214.0048730024.01
progress
6. Fixed assets
Guangdong Expressway
Technology Investment Co. Purchase assets 82895.00
Ltd.Guangdong Communication
Planning & Design Institute Purchase assets 483543.00
Co. Ltd.Subtotal of Fixed assets 566438.00
7. Other current assets
Guangdong Feida Traffic
Contract acquisition cost 182274.01
Engineering Co. Ltd.Subtotal of Other current
182274.01
assets
Related transactions on sale goods and receiving services
In RMB
Related party Content
Amount of current period Amount of previous period
Operating income
Jingzhu Expressway Guangzhu North Commission
10977500.0010603632.04
section Co. Ltd. management fee
Salaries of expatriate
Zhaoqing Yuezhao Highway Co. Ltd. 613816.63 512977.97
staff
Salaries of expatriate
Ganzhou Gankang Expressway Co. Ltd. 578774.80 525660.83
staff
Guangdong Traffic Development Co. Ltd. electricity 486046.23 336290.97
Guangdong Tongyi Expressway Service
water and electricity 479678.14 486716.96
Area Co. Ltd
Salaries of expatriate
Shenzhen Huiyan Expressway Co. Ltd. 464466.28 260849.89
staff
Ganzhou Kangda Expressway Co. Ltd. Salaries of expatriate 142237.06 138547.02
112Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
staff
Guangdong Jiangzhong Expressway Co. Salaries of expatriate
168312.27176119.41
Ltd. staff
Bidding documents
Poly Changda Engineering Co. Ltd. income water and 21011.51 1000.00
electricity bills
Guangdong Yueyun Traffic Rescue Co.Water and electricity 5770.73
Ltd.Guangdong Expressway Media Co. Ltd. Water and electricity 4637.51
Guangdong Provincial Freeway Co.Ltd. Project fund 886950.00
Guangdong Luoyang Expressway Co. Ltd. Test 58490.57
Subtotal of Operating income 13942251.16 13987235.66
(2) Information of related lease
The Company was lessor：
In RMB
Category of lease The lease income confirmed in The lease income confirmed in
Name of lessee
assets this year last year
Guangdong Expressway Media Co. Advertising lease
1292283.511379412.57
Ltd.Guangdong Litong Technology Communication
1067169.99522034.27
Investment Co. Ltd. Piping
Poly Changda Engineering Co. Ltd. Rental income 555557.14 555557.14
Guangdong Expressway Advertising lease
543695.69
Technology Co. Ltd.Guangdong Traffic Development Rental income of
267958.87149850.34
Co. Ltd. charging pile
Guangdong Road Network Digital
Media Information Technology Co. Advertising 2777.78
Ltd.
113Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
- The company was lessee：
In RMB
Variable lease payments
Rental charges for short-
not included in lease Interest expenses on lease
term and low-value assets Rent paid Increased use right assets
liabilities measurement (if liabilities assumed
(if any)
any)
Category of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount
Lessor
leased assets
current previous current previous current period previous current previous current period of
period period period period period period period previous
period
Guangdong
Litong
Office space
Decelopment 5065766.04 4798232.52 276207.92 223498.78 30404063.26
Investment Co.Ltd
Guangdong
Litong Property Office space
18093.0027586.0015732.001490.55230671.46
Development
Co. Ltd.
114Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
(3 ）Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
2969700.002834900.00
personnel
（4） Transactions with associated financial companies
（1）Deposit business
Related party Relationship Maximum Deposit Beginning The amount of this perioddaily deposit interest rate balance（10，Total amount Total amount Ending
limit（10， range 000）
for this period is withdrawn balance
000）
（10000） for this period （10，000)
（10000）
Guangdong
Controlled by the
Communications
same parent 300000.00 0.35%-2.85% 239396.61 298189.83 254255.77 283330.67
Group Finance
company
Co. Ltd
（2）Loan business
Related party Relationship Beginning The amount of this period
balance
Ending
Loan limit Total loan Total （10，000）
Loant interest balance
（10， amount of the repaymentrate range （10，
000） current period amount of the
000）
（10000） current period
（10000）
Guangdong
Communications Controlled by the
400000.002.95%-3.40%62859.33659.1043797.1319721.30
Group Finance same parent company
Co. Ltd
（3）Credit extension or other financial servicesRelated party Relationship Business type Total amount（10， Actual amount000） incurred（10，000)Guangdong Communications Controlled by the same Credit extension
220000.0019700.00
Group Finance Co. Ltd parent company
The Company respectively signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 25 2017; and signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 22 2017 respectively joined the cash pool of Guangdong Communications Group
Finance Co. Ltd.Guangdong Guanghui Expressway Co. Ltd respectively signed the "Cash Management Business
Cooperation Agreement" with Guangdong Communications Group Finance Co. Ltd and Agricultural Bank of
China Co. Ltd Guangdong Branch on May 19 2020 joined the cash pool of Guangdong Communications Group
115Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Finance Co. Ltd.
（5）Asset transfer and debt restructuring of related parties
None
(6) Other related-party transactions
-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. The above transactions have been approved and implemented by
the board of directors of Guangdong Fokai Expressway Co. Ltd.On March 25 2021 the Sixteenth Meeting of the Ninth Board of Directors of the Company held and
reviewed the Proposal on the Company's Estimated Daily Related Party Transactions in 2021. It is estimated
that the daily related party transactions include the Agreement on the Entrusted Management of the Preliminary
Work of the Reconstruction and Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao
Expressway signed by Beijing-Zhuhai Expressway Guangzhou-Zhuhai Section Co. Ltd. and Guangdong
Highway Construction Co. Ltd. in which the latter is responsible for the main management responsibilities and
all the preliminary work before the approval of the reconstruction and expansion project. The above transactions
have been approved and implemented by the board of directors of Beijing-Zhuhai Expressway Guangzhou-
Zhuhai Section Co. Ltd.On November 30 2022 the fifth (interim) meeting of the 10th Board of Directors of the Company
reviewed and approved the Proposal on Entrusted Construction Management of the Reconstruction and
Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway and agreed that the subsidiary
Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway Co. Ltd. entrusted Guangdong Provincial Highway
Construction Co. Ltd. to carry out the whole-process construction management of the reconstruction and
expansion project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway. The above transactions have
been approved and implemented by the Board of Directors of Guangzhu Section of Beijing-Zhuhai Expressway
Co. Ltd The above transactions have been approved and implemented by the board of directors of Beijing-
Zhuhai Expressway Guangzhou-Zhuhai Section Co. Ltd.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Bad debt
Balance of Book
Book Provision Provision
Account Guangdong Union electron Service Co.
68965060.8467197924.19
receivable Ltd.Account Guangdong Humen Bridge Co. Ltd. 16631182.47 6072995.36
116Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
receivable
Account Jingzhu Expressway Guangzhu North
5818074.998321625.03
receivable Section Co. Ltd.Account Guangdong Litong Technology
533136.00
receivable Investment Co. Ltd.Account Guangdong Expressway Technology
126986.702315719.18
receivable Investment Co. Ltd.Account Guangdong Expressway Media Co.
522805.00
receivable Ltd.Account
Poly Changda Engineering Co. Ltd. 265054.16
receivable
Total 92074441.00 84696122.92
Other Account Guangdong Litong Technology
1839246.941653447.36
receivable Investment Co. Ltd.Other Account Guangdong Expressway Media Co.
695223.54978997.66
receivable Ltd.Other Account Guangdong Provincial Freeway
463491.88463491.88
receivable Co.Ltd.Other Account Guangdong Expressway Technology
318319.0065605.71
receivable Investment Co. Ltd.Other Account Guangdong Traffic Development Co.
183157.04
receivable Ltd.Other Account Guangdong Union electron Service Co.
147018.71137851.04
receivable Ltd.Other Account Guangdong Litong Property
25475.0018344.00
receivable Develpment Co. Ltd.Other Account
Guangdong Humen Bridge Co. Ltd. 15000.00
receivable
Other Account
Poly Changda Engineering Co. Ltd. 6657.71
receivable
Other Account Guangdong Yueyun Traffic Rescue
3897.19
receivable Co. Ltd.Total 3697487.01 3317737.65
Other Non-Current
Poly Changda Engineering Co. Ltd. 48226078.70
Assets
Other Non-Current Guangdong Xinyue Traffic Investment
834973.80
Assets Co. Ltd.Other Non-Current Guangdong Traffic Development Co.
333398.00333398.00
Assets Ltd.Total 49394450.50 333398.00
（2）Payables
In RMB
Amount at year Amount at year
Name Related party
end beginning
Short-term loan Guangdong Communication Group Finance Co. ltd. 430387597.20
Total 430387597.20
117Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Amount at year Amount at year
Name Related party
end beginning
Guangzhongjiang Expressway Project Management
Account payable 17466700.00 17466700.00
Dept
Account payable Poly Changda Engineering Co. Ltd. 5415553.30 12590171.30
Account payable Guangdong Xinyue Traffic Investment Co. Ltd 3498917.77 6381639.70
Account payable Guangdong Union Electron Service Co.Ltd. 2818047.86 188039.97
Account payable Guangdong Communications Testing Co. Ltd. 2023485.00 2400079.00
Account payable Guangdong Yueyun Traffic Rescue Co. Ltd. 1407941.00 261800.00
Account payable Guangdong Provincial Freeway Co.Ltd. 1245443.50 1245443.50
Guangdong Expressway Technology Investment
Account payable 980578.00 6935455.12
Co. Ltd.Account payable Guangdong Feida Traffic Engineering Co. Ltd. 774876.84 3716816.94
Guangdong Communication Planning & Design
Account payable 585379.10 3008670.10
Institute Co. Ltd.Account payable Guangdong Hualu Traffic Technology Co. Ltd. 466616.91 1769785.29
Guangdong Litong Technology Investment Co.Account payable 335569.11 843562.91
Ltd.Account payable Guangdong Changda Road Maintenance Co. Ltd. 231869.00 231869.00
Guangdong East Thinking Management Technology
Account payable 86630.00 950630.00
Development Co. Ltd.Account payable Guangzhou Xinyue Asphalt Co. Ltd. 46779.00 46779.00
Account payable Guangdong Lulutong Co. Ltd. 3787627.94
Account payable Hunan Lianzhi Technology Co. Ltd. 640088.00
Guangzhou Aitesi Communication Equipment Co.Account payable 25194.00
Ltd.Total 37384386.39 62490351.77
Advance received Guangdong Union electronic services co. Ltd. 1417034.63 1330729.13
Total 1417034.63 1330729.13
Dividend payable Guangdong Provincial Freeway Co.Ltd. 11550000.00
Total 11550000.00
Other Payable account Poly Changda Engineering Co. Ltd. 21556770.48 20866108.48
Other Payable account Guangdong Hualu Traffic Technology Co. Ltd. 2874595.06 1905833.06
Other Payable account Guangdong Highway Construction Co. Ltd. 2137605.14 2000000.00
Guangdong Expressway Technology Investment
Other Payable account 1687217.46 2298424.75
Co. Ltd.Other Payable account Guangdong Changda Road Maintenance Co. Ltd. 1628345.00 1628345.00
Other Payable account Guangdong Xinyue Traffic Investment Co. Ltd. 1503467.33 1415273.20
Other Payable account Guangdong Feida Traffic Engineering Co. Ltd. 1436828.89 1522615.96
Other Payable account Guangdong Xinyue Traffic Investment Co. Ltd. 1415273.20 1332556.89
Other Payable account Guangdong Union Electron Service Co.Ltd. 1355836.70
Other Payable account Guangzhou Xinyue Asphalt Co. Ltd. 1054919.00 1054919.00
Other Payable account Guangdong Lulutong Co. Ltd. 809377.06 859377.06
Other Payable account Guangdong Communications Testing Co. Ltd. 238186.00 971085.90
Guangzhongjiang Expressway Project Management
Other Payable account 200000.00 200000.00
Dept
Guangdong Tongyi Expressway Service Area Co.Other Payable account 120000.00 120000.00
Ltd.
118Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Amount at year Amount at year
Name Related party
end beginning
Guangdong Communication Planning & Design
Other Payable account 110422.00 110422.00
Institute Co. Ltd.Guangdong Litong Technology Investment Co.Other Payable account 92594.24 92594.24
Ltd.Other Payable account Guangdong Expressway Media Co. Ltd. 50000.00 50000.00
Guangdong East Thinking Management Technology
Other Payable account 26568.18 156534.54
Development Co. Ltd.Other Payable account Hunan Lianzhi Technology Co. Ltd. 19797.00 85785.50
Other Payable account Guangdong Yueyun Traffic Rescue Co. Ltd. 2000.00 2000.00
Total 38319802.74 36671875.58
Non-current liabilities due 1 Guangdong Litong Development Investment Co.
9648206.792445724.55
year Ltd.Non-current liabilities due 1
Guangdong Communication Group Finance Co. ltd. 2213033.33 2205700.01
year
Non-current liabilities due 1
Guangdong Litong Property Development Co. Ltd. 100708.20
year
Total 11961948.32 4651424.56
Other current liabilities Guangdong Communication Group Co. ltd. 500395833.33 500122916.67
Total 500395833.33 500122916.67
Guangdong Litong Development Investment Co.Lease Liabilities 18412022.93
Ltd.Lease Liabilities Guangdong Litong Property Development Co. Ltd. 115721.81
Total 18527744.74
Long-term loans Guangdong Communication Group Finance Co. ltd. 195000000.00 196000000.00
Total 195000000.00 196000000.00
7. Related party commitment
None
XII. 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
XIII. Commitments
1. Significant commitments
Significant commitments at balance sheet date
Significant commitments The Company held the second (interim) meeting of the 10th Board of Directors
on October 22 2022. The meeting deliberated and passed the Proposal on Investing in the Reconstruction and
Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway with Capital Increase from
119Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Guangzhou-Zhuhai Section Co. Ltd. of Beijing-Zhuhai Expressway and agreed that the company would
invest in the construction of the Reconstruction and Expansion Project of Nansha-Zhuhai Section of
Guangzhou-Macao Expressway with Capital Increase from Guangzhou-Zhuhai Section Co. Ltd. of Beijing-
Zhuhai Expressway based on the estimated investment amount of 15.425 billion yuan approved by Guangdong
Provincial Development and Reform Commission.The project capital is 35% of the estimated investment amount after deducting the expenses borne by the
government and the company undertakes the capital contribution of about 3.414 billion yuan according to the
shareholding ratio. This matter has been reviewed and approved by the Company's third extraordinary general
meeting in 2022.As of June 30 2023 the accumulated cost of the reconstruction and expansion project of Nansha- Zhuhai
section of Guangzhou-Macao Expressway was 1021162978.77 yuan
2. Contingency
(1) Significant contingency at balance sheet date
As of June 302023 the Company did not need to disclose important commitments.
(2) The Company have no significant contingency to disclose also should be stated
None
XIV. Events after balance sheet date
None
XV.Other significant events
1. Segment information
The company's business for the Guangfo Expressway the Fokai Expressway Guanghui 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.
120Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
2.Government Subsidy
(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method
In RMB
Subsidy item Category Opening New subsidy amount The carry-over in current Other Closing Presentation items carried Asset-
balance in current period period is included in profit changes balance over into profit or loss in related/revenue-
and loss amount the current period related
Cancel the special subsidy for the Financial Other income
expressway provincial toll station appropriation 20931143.87 5023474.62 15907669.25 Assets related
project
Qijiang new city south interchange Financial Other income
185000000.00 185000000.00 Assets related
construction Project appropriation
Charging infrastructure incentive Financial Other income
78068.83 5576.34 72492.49 Assets related
funds appropriation
(2) Government subsidies included in current profits and losses using the total amount method
In RMB
Subsidy item Category Amount included in profit or loss Presentation items included in Asset-related/revenue-
in the current period profit or loss in the current related
period
Subsidy for post stabilization Financial appropriation 25500.00 Other income Income related
Jiujiang Bridge structure health monitoring system optimization and Other income Income related
Financial appropriation 600000.00
upgrade of vehicle purchase tax subsidy funds
121Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
3.Other important transactions and events have an impact on investors decision-making
(1) Performance compensation
The net profit of Guangzhou-Huizhou Company (excluding non-recurring gains and losses) in 2020 was
RMB 769232600 RMB 116755100 more than the promised amount; the net profit of Guangzhou-Huizhou
Company (excluding non-recurring gains and losses) in 2021 was RMB 1105444400 RMB 7142900 less
than the promised amount; the net profit of Guangzhou-Huizhou Company (excluding non-recurring gains and
losses) in 2022 was RMB 8961019OO RMB 338099000 less than the promised amount by the end of 2022 the
accumulated net profit (excluding non-recurring gains and losses) was RMB 2770778900 RMB 228486800
more than the promised amount.In 2022 affected by the macroeconomic impact and in response to the State Council's 10% reduction in
truck tollsin toll roads in the fourth quarter of 2022 Guanghui Expressway toll revenue fell sharply. According
to the "Profit Compensation Agreement" signed between the Company and the Provincial Expressway
combined with the actual situation of the performance of Guanghui Expressway the Company negotiated
matters related to the performance commitment with the Provincial Expressway and the contingent
consideration formed by the performance compensation was not recognized in 2022.On August 72023The "Proposal on Changing the Performance Commitment of Major Asset
Restructuring Project in 2020 and Sinning the Supplementary Agreement to the Profit Compensation
Agreement " was deliberated and adopted in the 10thmeeting (interim) of the 10th Board of Directors of the
Company agreeing to change the performance commitment of major asset restructuring project in 2020 and
the performance compensation period of the restructuring is adjusted to 2020 2021 and 2023 and the
Provincial Expressway promises that the net profit accumulated by Guanghui Expressway in the three years of
2020 2021 and 2023 after deducting non-recurring profits and losses shall not be less than 2999265700 yuan.
If the cumulative net profit of Guanghui Company does not reach the afore-said cumulative committed net
profit within the afore-said adjusted compensation period the Provincial Expressway shall compensate the
Company in cash in accordance with the "Profit Compensation Agreement" and the provisions of this
agreement.The above-mentioned change to performance commitments need to be reviewed and approved by the
company at its first (extraordinary) general meeting of shareholders on August 23 2023.
(2) Follow-up management and maintenance issues after the expiration of the Guangzhou-Foshan
Expressway operation
The Company received the Notice of the Guangdong Provincial Department of Transport on Matters
Related to the Disposal of the Guangfo Expressway Toll Period (No. 24 [2022] Yue Jiaoying Memorandum)
and the Guangfo Expressway operated by its holding subsidiary Guangfo Expressway Co. Ltd (hereinafter
referred to as "Guangfo Company") stopped collecting tolls from midnight on March 3 2022. It retains the
existing toll facilities to operate as usual in a zero-rate manner exempts all vehicle tolls for vehicles passing
through this section of the road and collects vehicle tolls for other road sections on their behalf. After the toll
collection is stopped the Guangfo Company will continue to be responsible for the management and
maintenance of the Guangfo Expressway.
122Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
The source of funds for management and maintenance expenses paid by Guangfo on behalf of remains to
be further clarified and as of June 302023 the management and maintenance expenses paid by Guangfo
Company on behalf of is 141431005.33 yuan.
123Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
XVI..Notes of main items in financial reports of parent company
1. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category
Amount Proporti Amou Proportio Book value Amount Proportio Amoun Proportion( Book value
on(%) nt n(%) n(%) t %)
Accrual of bad debt provision by
Single
Accrual of bad debt provision by 100.00
21127358.7321127358.7323817016.30100.00%23817016.30
portfolio %
Of which：
100.00
Aging portfolio 21127358.73 21127358.73 23817016.30 100.00% 23817016.30
%
Other
Total 21127358.73 21127358.73 23817016.30 23817016.30
124Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Accrual of bad debt provision by Single :None
Accrual of bad debt provision by portfolio: Accounts receivables with bad debt provision are recognised by
portfolio by age
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Expected credit loss rate(%)
Within 1 year 21127358.73
Total 21127358.73
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 Book balance
Within 1 year（Including 1 year） 21127358.73
Total 21127358.73
(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
21000372.0399.40%
Services Co. Ltd.Guangdong Expressway
126986.700.60%
Technology Investment Co. Ltd.Total 21127358.73 100.00%
（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
2.Other receivable
In RMB
Items
Year-end balance Year-beginning balance
Dividend receivable 45903912.26 36905472.90
125Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Other receivable 1240260547.94 1505117198.28
Total 1286164460.20 1542022671.18
（1）Interest receivable：
None
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment
1205472.901205472.90
No.1 Limited partnership enterprise
China Everbright Bank Co. Ltd. 44698439.36
Guangdong Guanghui Expressway Co. Ltd. 35700000.00
Total 45903912.26 36905472.90
2）Significant dividend receivable aged over 1 year
I n RMB
Whether or not the
Balance in
Items) Aging Reasons for non-recovery impairment and the basis
year-end
for its determination
The partnership agreement
Guangdong Radio and Television
4-5 expires and can be recovered No it can be recovered
Networks investment No.1 Limited 1205472.90
years after the extension procedures in the future
partnership enterprise
are completed
Total 1205472.90
3）The withdrawal amount of the bad debt provision
□ Applicable √ Not applicable
126Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Balance in year-end Balance Year-beginning
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportion Proportion Book value Proportion Proportion Book value
Amount Amount Amount Amount
(%)(%)(%)(%)
Other receivables
for individual bad 30844110.43 2.43 30844110.43 100.00 30844110.43 2.01 30844110.43 100.00
debt provision
Other receivables
for bad debt
provision according
1240260547.9497.571240260547.941505117198.2897.991505117198.28
to the combination
of credit risk
characteristics
Including: Aging
portfolio
Other 1240260547.94 97.57 1240260547.94 1505117198.28 97.99 1505117198.28
Total 1271104658.37 100.00 30844110.43 — 1240260547.94 1535961308.71 100.00 30844110.43 — 1505117198.28
127Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Accrual of bad debt provision by single：
In RMB
Closing book balance
Expected credit loss
Bad Debt Reserves Book balance Bad debt provision Reason
rate(%)
Kunlun Securities Co. Bad debts were
30844110.43 30844110.43 100.00 withdrawn in full in
Ltd
bankruptcy
Total 30844110.43 30844110.43 / /
In the portfolio Disclosure by aging: None
In the portfolio other receivables with bad debt provision by other methods:
Name Balance in year-end Balance Year-beginning
Deposit money and quality guarantee 2412546.94 2090516.36
fund combination
Petty cash 1458213.38 1293602.05
Other 1236389787.62 1501733079.87
Subtotal 1240260547.94 1505117198.28
Less：Bad debt provision
Total 1240260547.94 1505117198.28
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Bad Debt Reserves Expected credit Expected credit loss for the entire duration Total
losses over the next over life (no credit
(credit impairment
12 months impairment)
occurred)
Balance as at January
30844110.4330844110.43
12023
Balance as at January
12023
Balance as at June
30844110.4330844110.43
302023
Loss provision changes in current period change in book balance with significant amount
□Applicable √ Not applicable
3） Accounts receivable withdraw reversed or collected during the reporting period
None
4）The actual write-off other accounts receivable: None
5)Other receivables are classified according to the nature
In RMB
Nature Closing book balance Opening book balance
Securities trading settlement funds 30844110.43 30844110.43
Deposit 2412546.94 2090516.36
Petty cash 1458213.38 1293602.05
Other 1236389787.62 1501733079.87
128Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Subtotal 1271104658.37 1535961308.71
Less：Bad debt provision 30844110.43 30844110.43
Total 1240260547.94 1505117198.28
6) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of the
total year end Closing balance
Name Nature Closing balance Aging balance of the of bad debt
accounts provision
receivable(%)
Jingzhu
Expressway Reconstruction and expansion of Within
1235277549.5797.18%
Guangzhu investment funds and interest 1 year
Section Co. Ltd.Kunlun
Over 5
Securities Securities trading settlement funds 30844110.43 2.43% 30844110.43
years
Co.Ltd
Guangdong
Litong
Within
Development Lease deposit 1816266.94 0.14%
1 year
Investment Co.Ltd
Guangdong
Litong
Development Vehicle parking deposit 22980.00 0.00%
years
Investment Co.Ltd.Guangdong
Provincial Over 5
Entrusted management fee 463491.88 0.04%
Freeway years
Co.Ltd.Water and electricity fee working
Savills Property 2-3
capital management fee deposit 4200.00 0.00%
Consulting years
vehicle parking space deposit
Water and electricity fee working
Savills Property 3-4
capital management fee deposit 414525.00 0.03%
Consulting years
vehicle parking space deposit
Total 1268843123.82 99.82% 30844110.43
7） Accounts receivable involved with government subsidies
None
8) Other account receivable which terminate the recognition owning to the transfer of the financial assets
None
9) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
129Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
3. Long-term equity investment
In RMB
End of term Beginning of term
Items
Book Balance Impairment provision Book value Book Balance Impairment provision Book value
Investment in subsidiaries 3692740464.84 3692740464.84 3374330463.43 3374330463.43
Investment in joint ventures
2867753731.352867753731.352722085180.532722085180.53
and associates
Total 6560494196.19 6560494196.19 6096415643.96 6096415643.96
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period
Withdrawn Closing balance of
Name Opening balance Decreased Closing balance
Add investment impairment Other impairment provision
investment
provision
Jingzhu Expressway Guangzhu Section
871171883.08265410001.411136581884.49
Co. Ltd.Guangfo Expressway Co. ltd. 154982475.25 154982475.25
Yuegao Capital Investment
322500000.0053000000.00375500000.00
(Guangzhou) Co. Ltd.Guanghui Expressway Co. Ltd. 2025676105.10 2025676105.10
Total 3374330463.43 318410001.41 3692740464.84
130Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Announced for
Decrease Investment Other Other Provision balance of
Name Opening balance Increase in distributing Closing balance
in income under comprehensive changes for Other impairment
investment cash dividend
investment equity method income in equity impairment provision
or profit
I. Joint ventures
II. Associated enterprises
Guangdong
Jiangzhong
446883150.4045000000.006731118.4916005.854627613.17494002661.57
Expressway
Co. Ltd.Ganzhou
Gankang
163154438.009568563.16172723001.16
Expressway
Co. Ltd.Ganzhou
Kangda
246268935.1320692056.64266960991.77
Expressway
Co. Ltd.Shenzhen
Huiyan
348669767.3214856921.37363526688.69
Expressway
Co. Ltd.Zhaoqing
Yuezhao
310209765.8730133975.22340343741.09
Highway
Co. Ltd.Guoyuan 987867627.42 22017218.07 12110298.33 2424.19 15522387.30 1006475180.71
131Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Securities
Co.Ltd.Guangdong
Yuepu
Small 219031496.39 4689969.97 223721466.36
Refinancing
Co. Ltd
Subtotal 2722085180.53 45000000.00 108689822.92 12110298.33 18430.04 20150000.47 2867753731.35
Total 2722085180.53 45000000.00 108689822.92 12110298.33 18430.04 20150000.47 2867753731.35
132Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
4. Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Revenue Cost Revenue Cost
Main business 734319820.33 242491456.98 636965610.55 249145875.83
Other 6352612.68 1795927.53 5689892.19 1926210.70
Total 740672433.01 244287384.51 642655502.74 251072086.53
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income
404052121.37681064177.01
accounted by cost method
Long-term equity investment income
108689822.9298360414.38
accounted by equity method
Investment income from disposal of
-45107982.42
Long-term equity investment
Dividend income from other equity
instrument investments during the 71249739.36 47286243.74
holding period
Interest income from debt investment
10079133.93
during holding period.Other 12728947.34
Total 596720630.99 791681986.64
XVII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-
-15753.62
off part for which assets impairment provision is made)
Government subsidies recognized in current gain and
loss(excluding those closely related to the Company’s 5654550.96
business and granted under the state’s policies)
Net amount of non-operating income and expense except
1923823.88
the aforesaid items
Other non-recurring Gains/loss items 795422.82
The impairment provision for the advance expenses that
have occurred but need to be defined from the source of -43681523.62
funds
Less :Influenced amount of income tax 2088521.91
Influenced amount of minor shareholders’ equity (after
-9372564.36
tax)
133Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023
Total -28039437.13 --
None ：
Due to its special nature the provision for impairment of the management and maintenance expenditures that ha
ve been paid for by Guangfo Expressway but whose source of funds needs to be clarified will affect the normal
judgment of the company's operating performance and profitability by the report users.Details of other profit and loss items that meet the non-recurring profit and loss definition
√Applicable□ Not applicable
Due to the special nature of the impairment provision for management and maintenance expenses of the
Guangzhou-Foshan Expressway that has been advanced but the source of funds needs to be clarified it will
affect the normal judgment to the Company's operating performance and profitability by the user of the report.Explanation on defining the non recurring profit and loss items listed in the Explanatory Announcement
No. 1 on Information Disclosure of Companies Issuing Securities to the Public as recurring profit and loss
items□ Applicable√ Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS（Yuan/share）
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
9.30%0.420.42
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
9.59%0.440.44
deduction of non-recurring profit
and loss
3. Differences between accounting data under domestic and overseas accounting standards
（1）．Simultaneously pursuant to both Chinese accounting standards and international accounting
standards disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable
（2）. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.□ Applicable□√ Not applicable
(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign account
ing standards. If the data that has been audited by an overseas audit institution is adjusted for differences
the name of the overseas institution should be indicated
134
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