粤高速Ｂ：2020年半年度报告（英文版）

Guangdong Provincial Expressway Development Co. Ltd.The Semi-Annual Report 2020

August 2020

I. Important Notice Table of Contents and Definitions

The Board of Directors and the directors Supervisory Committee and supervisors and Senior Executives of the

Company hereby warrant that at the year there are no misstatement misleading representation or important

omissions in this report and shall assume joint and several liability for the authenticity accuracy and completeness

of the contents hereof.Mr.Zheng Renfa Company principal Mr. Wang Chunhua General Manager Mr.Fang Zhi Chief of the

accounting work Ms.Zhou Fang Chief of the accounting organ (chief of accounting ) hereby confirm the

authenticity and completeness of the financial report enclosed in this Semi-annual report.

All the directors have attended the meeting of the board meeting at which this report was examined.

The Company has no plan of cash dividends carried out bonus issued and capitalizing of common reserves either.Table of Contents

I.Important Notice Table of contents and Definitions

II. Basic Information of the Company and Financial index

III. Outline of Company Business

IV. Management’s Discussion and Analysis

V. Important Events

VI. Change of share capital and shareholding of Principal Shareholders

VII. Situation of the Preferred Shares

VIII. Information about convertible corporate bonds

IX. Information about Directors Supervisors and Senior Executives

X. Corporate Bond

XI. Financial Report

XII. Documents available for inspection

Definition

Terms to be defined Refers to Definition

Reporting period Refers to January 1 2020 to June 302020

Reporting date Refers to

The semi annual report of the company was approved by the board of

directors of 2020 that is August 25 2020

YOY Refers to Compared with January-June 2019

The Company /This Company Refers to Guangdong Provincial Expressway Development Co.Ltd.

Fokai Company Refers to Guangdong Fokai Expressway Co. Ltd.

Fokai Branch Refers to Guangdong Fokai Expressway Co. Ltd. Fokai Branch

Reconstruction and extension Project of the

South Section of Fokai Expressway

Refers to

Reconstruction and Expansion Project of Sanbao-Shuikou Section of

Fokai Expressway.

II. Corporate Profile and Key Financial Indicators

1.Company Information

Stock abbreviation: Expressway A Expressway B Stock code： 000429、200429Stock exchange for listing Shenzhen Stock Exchange

Name in Chinese 广东省高速公路发展股份有限公司

Abbreviation of Registered

Company (if any)粤高速

English name (If any) Guangdong Provincial Expressway Development Co.Ltd.

English abbreviation (If

any)

GPED

Legal Representative Zheng Renfa

2. Contact person and contact manner

Board secretary Securities affairs Representative

Name Yang Hanming Liang Jirong

Contact address

46/F Litong Plaza No.32 Zhujiang East

Road Zhujiang New City Tihe Disrtict

Guangzhou

45/F Litong Plaza No.32 Zhujiang East

Road Zhujiang New City Tihe Disrtict

Guangzhou

Tel 020-29004619 020-29004523

Fax 020-38787002 020-38787002

E-mail Hmy69@126.com 139221590@qq.com

3. Other

1. Way of contact

Whether registrations address offices address and codes as well as website and email of the Company changed in

reporting period or not

□ Applicable √ Not applicable

Registrations address offices address and codes as well as website and email of the Company has no change in

reporting period found more details in annual report 2019.

2. Information inquiry

Whether information disclosure and preparation place changed in reporting period or not

□ Applicable √ Not applicable

None of the official presses website and place of enquiry has been changed in the semi report period. For details

please find the Annual Report 2019.4. Summary of Accounting Data and Financial Indicators

Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.□Yes √No

Reporting period Same period of last year YoY+/-（%）

Operating income（yuan） 660898961.79 1483673245.21 -55.46%

Net profit attributable to the shareholders

of the listed company（yuan）

-5830257.18 736486112.30 -100.79%

Net profit after deducting of

non-recurring gain/loss attributable to

the shareholders of listed company（yuan）

-9514717.42 725039035.06 -101.31%

Cash flow generated by business

operation net（yuan）

417906104.34 1050811097.23 -60.23%

Basic earning per share(yuan/Share) -0.0028 0.35 -100.80%

Diluted gains per share(yuan/Share) -0.0028 0.35 -100.80%

Weighted average income/asset ratio（%） -0.06% 7.53% -7.59%

As at the end of the

reporting period

As at the end of last year YoY+/-（%）

Gross assets（yuan） 17473461012.92 17674545340.78 -1.14%

Shareholders’ equity attributable to

shareholders of the listed company（yuan）

8795317662.87 9823426849.75 -10.47%

5. 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

None

2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese

accounting standards.

□ Applicable √Not applicable

None

6.Items and amount of non-current gains and losses

√Applicable □Not applicable

In RMB

Items Amount Note

Non-current asset disposal gain/loss(including the write-off part

for which assets impairment provision is made)

-184874.06

Govemment subsidies recognized in current gain and

loss(excluding those closely related to the Company’s business

and granted under the state’s policies)

3535546.41

Net amount of non-operating income and expense except the

aforesaid items

2070546.90

Other non-recurring Gains/loss items 335742.79

Less :Influenced amount of income tax 1440123.12

Influenced amount of minor shareholders’ equity (after tax) 632378.68

Total 3684460.24 --

For the Company’ s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on

information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and

its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure

for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as

recurring gains and losses it is necessary to explain the reason.

□ Applicable√ Not applicable

None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information

disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.III. Business Profile

Ⅰ.Main Business the Company is Engaged in During the Report Period

Whether the company needs to comply with the disclosure requirements of the particular industry

The Company is an infrastructure industry with main business in developing and operating expressway and big

bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway

System. The expressway industry is the industry helped by government.The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai Expressway and

Jingzhu Expressway Guangzhu Section investment in technological industries and provision of relevant

consultation while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangzhou Guanghui Expressway Co.Ltd.Guangdong Jiangzhong Expressway Co. Ltd. Zhaoqing Yuezhao Higyway Co. Ltd.Ganzhou Kangda

Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Technology Micro Loan Co.

Ltd.Guangdong Guangle Expressway Co.Ltd.，Guoyuan Securities Co. Ltd.and Hunan Lianzhi Technology Co.Ltd.As of the end of the reporting period the company’ s share-controlled expressway is 153.71 km and

according to the equity ratio after the conversion calculation the total mileage is 264.41 km.Ⅱ.Major Changes in Main Assets

1. Major Changes in Main Assets

Main assets Major changes

Equity assets

The increase of 1.72% by the end of the period compared with that of the beginning

Mainly due to the combined influence of the operation accumulation and profit

distribution of the participating units.

Fixed assets

The decrease of 2.43% by the end of the period compared with that of the beginning

Mainly due to the impact of retirement and fixed asset depreciation in the current

period.Intangible assets

The decrease of 15.63% by the end of the period compared with that of the beginning

Mainly due to the impact of amortization of intangible assets.

Construction in process

The decrease of 25.97% by the end of the period compared with that of the beginning

Mainly due to the cancelation the impact of the transfer of fixed assets of the

provincial toll station project

Moonetary funds

The increase of 8.57% by the end of the period compared with that of the beginning

Mainly due to the current operating accumulation and the comprehensive impact of

investment and financing.Other equity instrument

The decrease of 10.64% by the end of the period compared with that of the beginning

Mainly due to the changes in fair value of equity instruments.Other non -current assets The decrease of 31.40% by the end of the period compared with that of the beginning

Mainly due to the prepayment settlement of the reconstruction and expansion of the

southern section of the Fokai Expressway which led to the reduction of the

prepayment.

2. Main Conditions of Overseas Assets

□ Applicable √ Not applicable

Ⅲ.Analysis On core Competitiveness

The toll revenue of expressway industry mainly depends on the regional economic development. The

regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokaiexpressway controlled by the company are part of the National Expressway Network Planning-“Five vertical andseven horizontal” The share-controlled Jingzhu Expressway Guangzhu Section Co. Ltd.is a fast and convenient

expressway. and many of the company’s equity-participation expressways that are part of the main skeleton of the

Guangdong Provincial Expressway Planning-“ Ten vertical and five horizontal” which provides a strong

guarantee for stable traffic volume. Meanwhile the regional economy is the critical factor that influences the

traffic volume as Guangdong province is the economically developed region with years’ continuous high

growth of GDP so that provides the stable rising demand for the company.IV. Performance Discussion and Analysis

Ⅰ.General

The Company is an infrastructure industry with main business in developing and operating expressway and big

bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway

System. The expressway industry is the industry helped by government.In the first half of 2020 affected by the COVID-19 epidemic according to the notification requirements of the

Ministry of Transport from February 15 2020 to May 5 2020 all highways controlled and participated by the

company waived vehicle tolls for all vehicles passing through these sections according to law. Affected by this

policy In the report period the vehicle traffic and toll income of the controlled subsidiaries and joint ventures of

the Company are as follows:

Toll income in the first half year of 2020（Ten thousand）

Increase /Decrease(%)

Guangfo Expressway 10118.98 -56.04%

Fokai Expressway 28802.15 -53.34%

Jingzhu Expressway Guangzhu East Section 21943.09 -63.54%

Huiyan Expressway 5571.51 -52.50%

Guanghui Expressway 44716.78 -50.67%

Yuezhao Expressway 13169.31 -51.43%

Jiangzhong Expressway 8711.84 -61.33%

Kangda Expressway 5872.95 -51.07%

Gankang Expressway 3880.08 -55.19%

Guangle Expressway 64411.57 -58.46%

II.Main business analysis

Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”

Year-on-year change of main financial data

In RMB

This report period Same period last year

YOY

change

（%）

Cause change

Operating income 660898961.79 1483673245.21 -55.46%

Mainly due to the sharp decrease in

toll income caused by the influence

of the Ministry of Transport's policy

of exempting tolls from national toll

roads during the COVID-19

epidemic.Operating cost 524175125.06 549623810.49 -4.63%

Administrative

expenses

67990919.48 76975210.47 -11.67%

Financial expenses 118613780.29 103529762.40 14.57%

Income tax expenses 43240151.04 189696774.05 -77.21%

Mainly due to the decrease in income

tax expenses caused by the sharp

decline in taxable toll income during

the reporting period.

Cash flow generated

by business operation

net

417906104.34 1050811097.23 -60.23%

Mainly due to the sharp decrease in

toll income caused by the influence

of the Ministry of Transport's policy

of exempting tolls from national toll

roads during the COVID-19

epidemic.Net cash flow

generated by

investment

-138276203.58 -223968653.96 38.26%

Mainly due to the comprehensive

impact of the decrease and increase in

the payment of engineering

measurement funds on the equity

investment of Hunan Lianzhi

Technology Co. Ltd. a joint venture

during the reporting period resulted

from the completion and opening to

traffic of the main line of the

reconstruction and expansion project

of the south section of Fokai

Expressway.

Net cash flow

generated by financing

-38054052.80 -911807967.81 95.83%

Mainly due to the decrease in

dividend distribution and interest

repayment in this period compared

with the same period of last year.Net increasing of cash

and cash equivalents

241575847.96 -86500045.27 379.28%

It was mainly affected by the net

inflow of operating activities the net

outflow of investment activities and

the net outflow of financing

activities.Major changes to the profit structure or sources of the Company in the reporting period

□ Applicable √Not applicable

Component of Business Income

In RMB

This report period Same period last year Increase

/decreaseAmount Proportion Amount Proportion

Total operating

revenue

660898961.79 100% 1483673245.21 100% -55.46%

Industry

Highway

transportations

608642208.79 92.09% 1449330681.59 97.69% -58.01%

Other 52256753.00 7.91% 34342563.62 2.31% 52.16%

Product

Highway

transportations

608642208.79 92.09% 1449330681.59 97.69% -58.01%

Other 52256753.00 7.91% 34342563.62 2.31% 52.16%

Area

Guangfo Expressway 101189814.78 15.31% 230170928.97 15.51% -56.04%

Fokai Expressway 288021522.60 43.58% 617314121.48 41.61% -53.34%

Jingzhu Expressway

Guangzhu Section

219430871.41 33.20% 601845631.14 40.57% -63.54%

Other 52256753.00 7.91% 34342563.62 2.31% 52.16%

Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit with

Profit over 10%

√ Applicable □Not applicable

In RMB

Turnover Operation cost

Gross

profit

rate(%)

Increase/decrea

se of revenue

in the same

period of the

year(%)

Increase/decrea

se of business

cost over the

same period of

previous year

(%)

Increase/decr

ease of gross

profit rate

over the same

period of the

previous year

(%)

Industry

Highway

transportations

608642208.79 484079794.34 20.47% -58.01% -7.16% -43.55%

Product

Highway

transportations

608642208.79 484079794.34 20.47% -58.01% -7.16% -43.55%

Area

Guangfo Expressway 101189814.78 38415584.17 62.04% -56.04% 20.86% -24.15%

Fokai Expressway 288021522.60 326536944.51 -13.37% -53.34% 0.27% -60.61%

Jingzhu Expressway

Guangzhu Section

219430871.41 119127265.66 45.71% -63.54% -27.36% -27.04%

Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main

business based on latest on year’s scope of period-end.

□ Applicable √Not applicable

(3)Whether the Company’s Physical Sales Income Exceeded Service Income

□ Yes √ No

(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period

□Applicable √Not applicable

Any over 30% YoYMovements in the data above and why

√ Applicable □ Not applicable

During the epidemic period affected by the policy of exempting tolls of national toll roads by the Ministry of

Communications the operating income operating profit and net profit of Guangfo Expressway Co. Ltd. Fokai

Expressway Co. Ltd. and Jingzhu Expressway Guangzhu Section Co. Ltd. decreased significantly year on year.

III.Non-core business analysis

√ Applicable □Not applicable

In RMB

Amount Ratio in total profit Note

Whether be

sustainable

Investment

income

106638564.53 181.96%

It is due to the operation accumulation of

participant companies

Yes

Non-operating

income

4077676.95 6.96%

Mainly due to the decrease in dividend

distribution and interest repayment in this

period compared with the same period of

last year.No

Non-operating

expenses

2192008.48 3.74%

It was mainly the expenditure for

repairing damaged highway property

facilities

Other income 3871289.20 6.61% Governmental subsidy No

IV.Analysis of assets and liabilities

1.Significant changes in asset composition

In RMB

End of Reporting period End of same period of last year

Change in

percentage(%)

Reason for significant

changeAmount

As a

percentage of

total assets(%)

Amount

As a

percentag

e of total

assets(%)

Monetary fund 3059496742.46 17.51% 2038024951.05 12.42% 5.09%

Mainly due to

undistributed cash

dividends

Accounts

receivable

134069638.15 0.77% 103117760.85 0.63% 0.14%

Inventories 111683.22 0.001% 110142.49 0.001% 0.00%

Real estate

Investment

3220941.13 0.02% 3442059.61 0.02% 0.00%

Long-term

equity

investment

3311674455.49 18.95% 3237607137.38 19.74% -0.79%

Fixed assets 8709189223.95 49.84% 7911433640.97 48.23% 1.61%

It was mainly caused

by the completion

End of Reporting period End of same period of last year

Change in

percentage(%)

Reason for significant

changeAmount

As a

percentage of

total assets(%)

Amount

As a

percentag

e of total

assets(%)

and opening of the

main line of the

reconstruction and

expansion project of

the southern section

of Fokai Expressway

and the cancellation

of the provincial

boundary station

project and the

transfer of fixed

assets

Construction

in process

169594866.22 0.97% 835875363.36 5.10% -4.13%

Opening to traffic of

the main line of the

reconstruction and

expansion project of

the south section of

Fokai Expressway

and the transfer of

fixed assets

Long-term

borrowing

4704892500.00 26.93% 3281725000.00 20.00% 6.93% Increase in borrowing

2.Asset and Liabilities Measured by Fair Value

√ Applicable □Not applicable

In RMB

Items Opening amount

Gain/Loss

on fair value

change in

the reporting

period

Cumulative fair

value change

recorded into

equity

Impairmen

provisions

in the

reporting

period

Purchased

amount in

the

reporting

period

Sold

amoun

t in the

reporti

period

Closin

mount

End of term

Financial assets

4．Other Equity

Instrument

Investment

1668791594.53 324651822.72 1640561001.25

Subtotal of

financial assets

1835822604.77 324651822.72 1640561001.25

Total of the

above

1835822604.77 324651822.72 1640561001.25

Financial

liabilities

0.00 0.00

Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting

period?

□ Yes √No

3. Assets right restriction till end of reporting period

The balance of restricted bank deposits at the end of the period was RMB 1221200.00 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.V.Investment situation

1. General

√ Applicable □ Not applicable

Current Investment Amount(Yuan) Same period of last year (Yuan) Change rate

80000000.00 489183814.45 -83.65%

The 7th (temporary) meeting of the 9th board of directors of the company deliberated and passed the proposal on

increasing capital and investing in Hunan Lianzhi Technology Co. Ltd. to Yuegao capital investment (Hengqin)

Co. Ltd. which agreed to increase capital by 80 million yuan to Yuegao capital investment (Hengqin) Co. Ltd

Yuegao capital investment (Hengqin) Co. Ltd. subscribes 10867941 additional shares issued by Hunan Lianzhi

Technology Co. Ltd. based on the asset appraisal results not higher than the record with a total investment of no

more than 80 million yuan.2.Condition of Acquiring Significant Share Right Investment during the Report Period

□Applicable √ Not applicable

3.Situation of the Significant Non-equity Investment Undergoing in the Report Period

□ Applicable √Not applicable

4. Financial assets at fair value

√Applicable □ Not applicable

In RMB

5.Investment of Financial Asset

（1）Securities investment

√Applicable □ Not applicable

Security

category

Security

code

Stock

Abbreviati

on:

Initial

investment

cost

Mode of

accounti

measure

ment

Book value

balance at the

beginning of the

reporting period

Changes in

fair value of

the this period

Cumulative fair

value changes in

equity

Purchase

amount

in the

this

period

Sale

amount

in the this

period

Gain/loss of

the reporting

period

Book value

balance at the

end of the

reporting

period

Accountin

g items

Fundi

sourc

Type of assets Initial investment cost

Gain/loss on f\air value

changes in the reporting

period

Accumulated fair

value changes

recorded in equity

Purchased

in the

reporting

period

Sold in

the

reporting

period

Accumulated

return on

investment

Ending amount

Funding

source

Stock 517560876.80 324651822.72 352339207.77 842212699.52 Self funds

Total 517560876.80 0.00 324651822.72 0.00 0.00 352339207.77 842212699.52 --

Domestic and

foreign stocks

601818

Everbright

Bank

51756087

6.80

FVM 1037474303.04 324651822.72 50344558.02 842212699.52

Other

equity

Instrument

Investment

Self

funds

Total

51756087

6.80

-- 1037474303.04 0.00 324651822.72 0.00 0.00 50344558.02 842212699.52 -- --

Disclosure Date of Announcement on

Securities Investment Approved by the

Board of Directors

July 222009

Disclosure Date of Announcement on

Securities Investment Approved by the

Shareholders Meeting(If any)

August 72009

（2）Investment in Derivatives

□ Applicable √ Not applicable

The Company had no investment in derivatives in the reporting period.VI. Sales of major assets and equity

1. Sales of major assets

□ Applicable √ Not applicable

The Company had no sales of major assets in the reporting period.

2.Sales of major equity

□ Applicable √ Not applicable

VII.Analysis of the Main Share Holding Companies and Share Participating Companies

√ Applicable □ Not applicable

Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company

In RMB

Company

Name

Company

type

Leading products and services Registered capital Total assets Net assets Operating Income Operating profit Net Profit

Guangfo

Expressway

Subsidiary

Operating Guangfo Expressway Co. Ltd.(starts from

Hengsha Guangzhou ends in Xiebian Foshan. Total

length 15.7 kilometers

RMB 200 million 678991512.15 595425092.21 102043817.63 55909359.00 44304805.16

Jingzhu

Expressway

Guangzhu

Section Co.Ltd.Subsidiary

The operation and management of Guangzhu Expressway

and provision of supporting services including fueling

salvage and supply of parts and components

RMB 580 million 2332885951.24 690097056.29 232123838.11 57490033.93 40472322.41

Guangzhu

Traffic

Investment

Management

Co. Ltd.

Subsidiary

Highway investment management and consultation;

highway maintenance

RMB 3 million 2337743507.22 384382507.57 232123838.11 57409254.66 22178998.06

Guangdong

Guanghui

Sharing

company

Investment in and construction of Guanghui Expressway

Co. Ltd. and supporting facilities the toll collection and

RMB 2.352 billion 4302564173.64 3570690200.96 457060461.67 194683584.98 144984204.47

Company

Name

Company

type

Leading products and services Registered capital Total assets Net assets Operating Income Operating profit Net Profit

Expressway

Co. Ltd.

maintenance management of Guanghui Expressway The

Guanghui Expressway's supporting gas station salvation

vehicle maintenance vehicle transport catering

warehousing investment and development

Guangdong

Jiangzhong

Expressway

Co. Ltd.

Sharing

company

Investment in the construction operation and management

of the development of Jiangzhong Expressway and Jianghe

Expressway Phase II and its supporting projects

RMB 1.11 billion 1712107930.15 1180113111.24 104710532.41 -14280664.11 -16497001.94

Ganzhou

Gankang

Expressway

Co. Ltd.

Sharing

company

Investment construction operation and management of

Ganzhou-Dayu Expressway (Maodian-Sanyi Section)

project; Earthwork mining and sales; Road maintenance;

Advertising release; Operation of service facilities;

Wholesale and retail of building materials decoration

materials metal materials construction machinery and

equipment and accessories

RMB 755 million 1584331167.78 762641803.35 38800809.52 -59590324.77 -59444071.66

Ganzhou

Kangda

Expressway

Co. Ltd.

Sharing

company

Investment construction operation and management of

expressway projects; Road maintenance; Advertising

release; Wholesale and retail of construction machinery

equipment and accessories

RMB 600 million 1426658448.78 805832691.99 58743355.98 17026337.18 14779384.01

Shenzhen

Huiyan

Expressway

Co. Ltd.

Sharing

company

Organization and management of the construction of the

main line of Huiyan Expressway Shenzhen Section and the

operation maintenance service toll collection and road

administration after the completion of the main line of

Shenzhen Section; Construction management and

engineering consultation of roads bridges and culverts.

RMB 36 million 959785075.73 784035673.87 56468411.60 9569598.44 6569273.73

Zhaoqing Sharing Construction operation maintenance and management of RMB 818 million 1503744063.32 1030785749.81 133395780.21 37946901.58 28904360.90

Company

Name

Company

type

Leading products and services Registered capital Total assets Net assets Operating Income Operating profit Net Profit

Yuezhao

Higyway Co.Ltd.company Guangzhao Expressway and old roads and their supporting

facilities

Guoyuan

Securities

Co. ltd.

Sharing

company

Securities brokerage; Securities investment consultation;

Financial consultation related to securities trading and

securities investment activities; Securities underwriting and

sponsorship; Securities self-employment; Securities asset

management; Margin trading; Securities investment fund

consignment; Provision of intermediate introduction

services for futures companies; Consignment of financial

products; Insurance concurrent agency business

RMB3.365 billion 88100851539.35 25046713823.04 2115128481.79 783723726.93 617686456.03

Yueke

Technology

Petty Loan

Co. Ltd

Sharing

company

Handling of various small loans; Provision of financing

services to microfinance companies in the province; Bill

discount business; Financing consultation accounting

consultation and management training business for small

and medium-sized science and technology enterprises

RMB 1 billion 1245392724.83 1094777267.19 47461378.61 34937820.96 27712439.29

Subsidiaries obtained or disposed in the reporting period

□Applicable √ Not applicable

Particulars about the Mutual holding companies

During the epidemic period affected by the policy of exempting tolls of national toll roads by the Ministry of Communications the operating income operating

profit and net profit of Guangfo Expressway Co. Ltd. Jingzhu Expressway Guangzhu Section Co. Ltd. Guangzhu Transportation Investment Management Co. Ltd.Guangdong Guanghui Expressway Co. Ltd. Guangdong Jiangzhong Expressway Co. Ltd. Ganzhou Gankang Expressway Co. Ltd. Ganzhou kangda Expressway

Co. Ltd. Shenzhen Huiyan Expressway Co. Ltd. and Zhaoqing Yuezhao Highway Co. Ltd. decreased significantly year on year.

VIII．Structured vehicle controlled by the Company

□ Applicable √ Not applicable

IX. Prediction of business performance for January -September 2020

Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss

probably or the warning of its material change compared with the corresponding period of the last year and

explanation of reason.

□ Applicable √ Not applicable

X.Risks facing the Company and countermeasures

The company’s profits mainly come from the expressway tolls revenue and the toll charging standards

shall be examined by the traffic authority of the provincial autonomous region and the direct-controlled

municipality people’ s governments together with the same-level pricing authority and then submitted to the

same-level people’s government for approval. Therefore the charging price adjustment trend and the possibility

of the charging price adjustment upon rising of the commodity price and the company cost in the future are still

subject to relevant national policies and the approval of the governmental department. And the company can’t

adjust the charging standards promptly based on its own operation cost or the market supply-demand changes. In

conclusion the charging policies change and the charging standards adjustment have the influence on the

expressway business of the company to some extent.V. Important Events

I. Annual General Meeting and Provisional Shareholders’ Meetings in the Reporting Period

1.Annual General Meeting

Meeting Type

Investor

participation ratio

Convened date Disclosure date

Index to disclosed

information

2019 Shareholders’

general meeting

Annual

Shareholders’

General

Meeting

67.90% June 292020 June 302020 www.cninfo.com.cn

2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.

□Applicable√Not applicable

II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period

□ Applicable √Not applicable

For the reporting period the Company plans not to distribute cash dividends or bonus shares or convert capital

reserve into share capital.III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the

reporting period made by the company shareholder actual controller acquirer director supervisor

senior management personnel and other related parities.

□ Applicable √Not applicable

There is no commitment that has not been fulfilled by actual controller shareholders related parties acquirers of

the Company

IV. Particulars about engagement and disengagement of CPAs firm

Whether the semi-annual financial report had been audited?

□ Yes √ No

Not been audited.

V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s”

Issued by CPAs firm for the reporting period

□ Applicable √ Not applicable

VI. Explanations given by Board of Directors regarding“ Modified auditor’s Report”Issued for last year

□ Applicable √ Not applicable

VII. Bankruptcy and restructuring

□ Applicable √ Not applicable

No such cases in the reporting period.VIII. Legal matters

Significant lawsuits or arbitrations

□ Applicable √ Not applicable

No such cases in the reporting period.Other legal matters

√ Applicable □ Not applicable

Basic conditions of litigation (arbitration)

Amount

involved

（Tenthousandyuan ）

Forming of

the

predicted

debt

Litigation

(arbitratio

progress

Litigation

(arbitration)

judgement result

and influence

Litigation

(arbitration)

judgement

execution

condition

Date

discl

osure

Index

disclo

sure

On August 22 2007 Guangdong Fokai Expressway Co. Ltd. filed a lawsuit with

Guangzhou Maritime Court officially requiring Foshan Nanhai Yuhang Shipping Co.Ltd. and Yang Xiong to undertake the joint and several liabilities for the toll losses of

Fokai company due to the Jiujiang collapse. On March 7 2014 the court made the first

instance judgement requiring the defendants Foshan Nanhai Yuhang Shipping Co. Ltd.and Yang Xiong to compensate the defendant Guangdong Fokai Expressway Co. Ltd.jointly for the vehicle toll revenue loss totaling 19357500.96 yuan. Guangdong Higher

People's Court entered a judgement on June 5 2014 and the lawsuit terminated.

In April 2017 the reason for suspending the lawsuit was eliminated and the provincial

high court resumed the trial and conducted court investigation. On February 27 2020

the company received the second-instance judgment of the court which rejected the

appeal and upheld the original judgment. Because the defendant failed to perform the

effective judgment the company applied to Guangzhou Maritime Court for compulsory

execution. On July 27 2020 the company received the enforcement ruling of

Guangzhou Maritime Court ([2020] Y 72 Z No.247 - 3rd); A total execution payment of

RMB 657219.33 was transferred to our company by the court and the execution

1935.75 No

The

judgment

of the

second

instance

came into

effect

No major

influence on the

company asset

conditions and

the operation

results.Upheld the

original judgment.

After receiving the

execution payment

of RMB

657219.33 the

court terminated

the execution

procedure

according to law.procedure was terminated according to law.On June 12 2009 the 6.15 accident-causing boat owner Yang Xiong filed a lawsuit with

Guangzhou Maritime Court requiring Fokai company to compensate for the boat loss

and interest totaling 7.28 million yuan. On December 20 2013 the court made the first

instance judgement rejecting all litigation claims of Yang Xiong. He filed a lawsuit with

Guangdong Higher People's Court against such sentence above and the second instance

terminated the lawsuit in May 2014. In April 2017 the reason for suspending the lawsuit

was eliminated and the provincial high court resumed the trial and conducted court

investigation. On February 27 2020 the company received the second-instance

judgment of the court which rejected the appeal and upheld the original judgment.

728 No

The

judgment

of the

second

instance

came into

effect

No major

influence on the

company asset

conditions and

the operation

results.No execution is

involved.IX. Doubt6s from media

□ Applicable √Not applicable

The Company had no issues about which media generally raised doubts in the reporting period.X. Punishments and rectifications

□ Applicable √ Not applicable

No such cases in the reporting period.XI. Credit conditions of the Company as well as its Controlling shareholder and actual Controller

□ Applicable √ Not applicable

XII.Equity incentive plans employee stock ownership plans or other incentive measures for employees

□ Applicable √ Not applicable

No such cases in the reporting period.XIII.Material related transactions

1. Related transactions in connection with daily operation

□ Applicable √ Not applicable

No such cases in the reporting period.

2. Related-party transactions arising from asset acquisition or sold

□Applicable √ Not applicable

No such cases in the reporting period.

3. Related-party transitions with joint investments

□Applicable √ Not applicable

No such cases in the reporting period.

4. Amounts due to and from related parties

√Applicable □ Not applicable

Does there exist non-operating current associated rights of credit and liabilities

□ Yes √No

No such cases in the reporting period.5. Other significant related-party transactions

√ Applicable □Not applicable

The 3rd (Provisional) Meeting of the Ninth Board of Directors of the Company reviewed and approved the

Proposal on Borrowing Entrusted Loans from Guangdong Jiangzhong Expressway Co. Ltd. according to the

procedure for reviewing related party transactions involving an amount of RMB 18 million accounting for 0.19%

of the owner's equity of RMB 9586701900 attributable to shareholders of the company at the end of 2018.

2.The 4th meeting of the Ninth board of directors of the Company examined and adopted the Proposal

Concerning the Company Daily Associated Transactions Predicted of 2020 Agree on the predicted daily

associated transactions for the company headquarters wholly-owned and holding subsidiaries of 2020 whose

amount in total is RMB 60.0912 million .

3.The 5th meeting of the Ninth board of directors of the Company examined and adopted the Proposal for

Renewing the Lease of Litong Plaza as Office Building，1. Agree that the company continues leasing all units inthe 44th and 43rd floors (all units of the self-numbered 46th and 45th floors) among planned floors in Litong Square

from Guangdong Litong Properties Investment Co. Ltd. as offices for three years from May 5 2020 to May 4

2023. The standard rent per month is 815233.68 yuan for the period from May 5 2020 to May 4 2021

839690.69 yuan for the period from May 5 2021 to May 4 2022 and 864884.64 yuan for the period from May 5

2022 to May 4 2023.

4.The 6th meeting of the Ninth board of directors of the Company examined and adopted the Proposal on agreeing

to the signing of the Supplementary Contract for the Contract for Period 2018 to 2020 Entrusted Operation and

Management of the Guangdong Jingzhu Expressway Guangzhu North Section，Agreed that the Jingzhu

Expressway Guangzhu Section Co. Ltd. and Guangdong Jingzhu Expressway Guangzhu North Section Co. Ltd.

signed the "Supplementary Contract for the ‘Contract for Period 2018 to 2020 Entrusted Operation and

Management of the Guangdong Jingzhu Expressway Guangzhu North Section’" which adds a transaction amount

of 2.5 million yuan in the base of the total contract value of the " Contract for Period 2018 to 2020 Entrusted

Operation and Management of the Guangdong Jingzhu Expressway Guangzhu North Section "-and the contract

amount does not exceed 62.5 million yuan after this increase.The website to disclose the interim announcements on significant related-party transactions

Description of provisional announcement

Date of disclosing

provisional

announcement

Description of the website for

disclosing provisional

announcementsAnnouncement of related party transaction（AnnouncementNo.:2020-004）

January 22020 www.cninfo.com.cnEstimates announcement of the Daily （AnnouncementNo.:2020-012）

April 72020 www.cninfo.com.cnAnnouncement of related party transaction（AnnouncementNo.:2020-017）

April 292020 www.cninfo.com.cn

Announcement on affiliated transactions of entrusted operations

of subsidiaries（Announcement No.:2020-020）

June 92020 www.cninfo.com.cn

XIV. Particulars about the non-operating occupation of funds by the Controlling shareholder and other

related parties of the Company

□Applicable √ Not applicable

The company was not involved in the non-operating occupation of funds by the controlling shareholder and other

related parties during the reporting period.XV. Significant contracts and execution

1.Entrustments contracting and leasing

（1）Entrustment

□Applicable √ Not applicable

No such cases in the reporting period.

（2）Contracting

□Applicable √ Not applicable

No such cases in the reporting period.

（3）Leasing

□Applicable √ Not applicable

No such cases in the reporting period.

2.Significant Guarantees

□Applicable √ Not applicable

No such cases in the reporting period.

3. Finance management on commission

□Applicable √ Not applicable

No such cases in the reporting period.

4. Other significant contract

□ Applicable √ Not applicable

No such cases in the reporting period.XVI.Social responsibilities

1.Major environmental protection

The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental

protection department

The Company's main business is highway operation and management which does not belong to the key pollutant

discharge units announced by the environmental protection department.

2. Measures Taken for Targeted Poverty Alleviation

(1) Targeted poverty alleviation plans

The company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up

plan either.

（2）Summary of related work done in the reporting period

None

（3）Results of Targeted measures

None

（4）Subsequent plans

None

XVI.Other material events

□ Applicable √ Not applicable

XVIII. Material events of subsidiaries

□ Applicable √ Not applicable

VI. Change of share capital and shareholding of Principal Shareholders

I.Changes in share capital

1. Changes in share capital

In shares

Before the change Increase/decrease（+，-） After the Change

Amount Proportion

allotment

Bonus

Capitali

zation of

common

reserve

fund

Other Subtotal Quantity Proportion

1.Shares with conditional

subscription

439384658 21.02% -136866 -136866 439247792 21.01%

1.State-owned shares 410032765 19.61% 7931 7931 410040696 19.61%

2.State-owned legal person shares 21712738 1.04% 0 21712738 1.04%

3.Other domestic shares 7639155 0.37% -144797 -144797 7494358 0.36%

Including ：Domestic Legal

person shares

7028355 0.34% 0 7028355 0.34%

Domestic natural person shares 610800 0.03% -144797 -144797 466003 0.02%

4.Foreign shares 0 0.00% 0 0 0 0.00%

Including：Foreign Legal person

0 0.00% 0 0 0.00%

Foreign natural person shares 0 0.00% 0 0 0.00%

II.Shares with unconditional

subscription

1651421468 78.98% 136866 136866 1651558334 78.99%

1.Common shares in RMB 1302772793 62.31% 137741 137741 1302910534 62.32%

2.Foreign shares in domestic

market

348648675 16.68% -875 -875 348647800 16.68%

3.Foreign shares in Overseas

market

0 0.00% 0 0 0 0.00%

4.Other 0 0.00% 0 0 0 0.00%

III. Total of capital shares 2090806126 100.00% 0 0 2090806126 100.00%

Reasons for share changed

√ Applicable □Not applicable

1. Within the reporting period 17 shareholders reimbursed 7931 shares of Guangdong Provincial Communication Group Company Limited which were

converted from domestic natural person to "national shareholding".

2.During the reporting period 137741 shares held by domestic natural persons with limited sales conditions were converted into shares with unlimited sales

conditions.

3.During the reporting period Ms. Wang Ping the outgoing director held 875 "unrestricted shares" and changed them into "restricted shares".

4.During the reporting period Ms. Li Mei the outgoing supervisor，held 86629 restricted shares and changed them into unrestricted shares.

Approval of Change of Shares

□Applicable √Not applicable

Ownership transfer of share changes

□Applicable √Not applicable

Progress of implementation of the stock repurchase

□Applicable √Not applicable

Progress of implementation of reduction of the holding size of the shares repurchased by centralized bidding

□Applicable √Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year

and period

□Applicable √Not applicable

Other information necessary to disclose for the company or need to disclosed under requirement from security regulators

□Applicable √Not applicable

Progress on any share repurchase:

□Applicable √ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding:

□Applicable √ Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year

and period

□ Applicable √ Not applicable

Other information necessary to disclose for the company or need to disclosed under requirement from security regulators

□Applicable √Not applicable

2. Change of shares with limited sales condition

√Applicable □Not applicable

In shares

Shareholder Name

Initial Restricted

Number of

Unrestricted Shares

This Term

Number of Increased

Restricted Shares

This Term

Restricted

Shares in the

End of the

Term

Reason for

Restricted Shares

Date of Restriction

Removal

Guangdong

Communication Group Co.

Ltd.

410032765 7931 410040696

The shares for

restricted sales by

share reform has

not yet be subject

to the procedures

for lifting the

restriction.Unknown

17 shareholders 59043 51112 0

Release of

restrictions on

sales

June 242020

Wang Ping 2625 875 3500

Top

management

locking shares

Unknown

Li Mei 86629 86629 0

Deletion of top

management

locking shares

January 2020

Total 410181062 137741 8806 410044196 -- --

II.Issuing and listing

□ Applicable √ Not applicable

III. Shareholders and shareholding

In Shares

Total number of common shareholders at the end of the reporting

period

55107

Total number of preferred shareholders that had

restored the voting right at the end of the reporting

period (if any) (note 8)

Particulars about shares held above 5% by shareholders or top ten shareholders

Shareholders

Nature of

shareholder

Proportion

of shares

held（%）

Number of

shares held

at period

-end

Changes

reporting

period

Amount of

restricted

shares held

Amount of

un-restricted

shares held

Number of share

pledged/frozen

State of

Amount

Guangdong Communication

Group Co.Ltd

State-owned

legal person

24.56% 513420438 7931 410040696 103379742

Guangdong Highway

Construction Co. Ltd

State-owned

legal person

22.30% 466325020 466325020

Yadong Fuxing Yalian

Investment Co. Ltd.

Domestic non

State-owned

Legal person

9.68% 202429149 202429149

Tibet Yingyue Investment

Management Co. Ltd.State-owned

legal person

4.84% 101214574 101214574

Guangdong Provincial

Freeway Co.Ltd.

State-owned

legal person

2.53% 52937491 19582228 33355263

China Life Insurance Co.

Ltd.Traditional－Common

insurance

products-005L-CT001Shen

Other 1.78% 37225847 5913227 37225847

China Life Insurance Co. Ltd.

－Dividend －Personal

dividend -005L-FH002 Shen

Other 1.74% 36330529 1554976 36330529

Orient Securities Co. Ltd.State-owned

legal person

1.08% 22508593 593200 22508593

Feng Wuchu

Domestic

natural

person shares

0.93% 19542552 3078105 19542552

Guangfa Securities Co. Ltd.

Domestic non

State-owned

Legal person

0.73% 15364426

-1499994

15364426

Strategic investor or general legal person

becoming top-10 ordinary shareholder due to

rights issue (if any)

None

Related or acting-in-concert parties among

shareholders above

Guangdong Communication Group Co. Ltd. is the parent company of Guangdong Highway

Construction Co. Ltd. and Guangdong Expressway Co. Ltd. It is unknown whether there is

relationship between other shareholders and whether they are persons taking concerted action

specified in the Regulations on Disclosure of Information about Change in Shareholding of

Shareholders of Listed Companies.Shareholding of top 10 shareholders of unrestricted shares

Name of the shareholder

Quantity of unrestricted shares held

at the end of the reporting period

Share type

Share type Quantity

Guangdong Highway Construction Co. Ltd 466325020 RMB Common shares 466325020

Yadong Fuxing Yalian Investment Co. Ltd. 202429149 RMB Common shares 202429149

Guangdong Communication Group Co.Ltd 103379742 RMB Common shares 103379742

Tibet Yingyue Investment Management Co. Ltd. 101214574 RMB Common shares 101214574

China Life Insurance Co. Ltd.－Traditional－Common

insurance products-005L-CT001Shen

37225847 RMB Common shares 37225847

China Life Insurance Co. Ltd.－Traditional－Common

insurance products-005L-CT001Shen

36330529 RMB Common shares 36330529

Guangdong Provincial Freeway Co.Ltd. 33355263 RMB Common shares 33355263

Orient Securities Co. Ltd. 22508593 RMB Common shares 22508593

Feng Wuchu

19542552

RMB Common shares 17457489

Foreign shares placed in

domestic exchange

2085063

Guangfa Securities Co. Ltd. 15364426 RMB Common shares 15364426

Explanation on associated relationship or consistent action

among the top 10 shareholders of non-restricted negotiable

shares and that between the top 10 shareholders of

non-restricted negotiable shares and top 10 shareholders

Guangdong Communication Group Co. Ltd. is the parent company of

Guangdong Highway Construction Co. Ltd. and Guangdong Expressway Co.Ltd. It is unknown whether there is relationship between other shareholders and

whether they are persons taking concerted action specified in the Regulations on

Disclosure of Information about Change in Shareholding of Shareholders of

Listed Companies.Top 10 ordinary shareholders conducting securities margin

trading (if any) (see note 4)

None

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.□ Yes √ No

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting

period.IV. Change of the controlling shareholder or the actual controller

Change of the controlling shareholder in the reporting period

□ Applicable √ Not Applicable

There was no any change of the controlling shareholder of the Company in the reporting period.

Change of the actual controller in the reporting period

□ Applicable √ Not applicable

There was no any change of the actual controller of the Company in the reporting period.VII. Situation of the Preferred Shares

□Applicable √Not applicable

The Company had no preferred shares in the reporting period

VIII Information about convertible corporate bonds

□ Applicable √Not applicable

During the reporting period the company did not have convertible corporate bonds.

IX. Information about Directors Supervisors and Senior Executives

I. Change in shares held by directors supervisors and senior executives

□Applicable √Not applicable

There was no change in shareholding of directors supervisors and senior management staffs for the specific

information please refer to the 2019 Annual Report

II. Change in shares held by directors supervisors and senior executives

√ Applicable □Not applicable

Name Positions Types Date Reason

Wang Ping Director Left January 82020 Retiree

Du Jun Director Left June 242020 Resign

X. Corporate Bond

Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange and

not yet due or due but not folly cashed on the approval date of annual report

XI. 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 302020

In RMB

Items June 302020 December 302019

Current asset：

Monetary fund 3059496742.46 2817920894.50

Settlement provision

Outgoing call loan

Transactional financial assets

Derivative financial assets

Notes receivable

Account receivable 134069638.15 125343724.66

Financing of receivables

Prepayments 3072462.33 10894246.41

Insurance receivable

Reinsurance receivable

Provisions of Reinsurance contracts

receivable

Other account receivable 22983175.46 26618178.57

Including：Interest receivable

Dividend receivable 10955472.90 7205472.90

Items June 302020 December 302019

Repurchasing of financial assets

Inventories 111683.22 111683.22

Contract assets 5246547.77

Assets held for sales

Non-current asset due within 1 year 51745.32 51745.32

Other current asset 310673.32

Total of current assets 3225342668.03 2980940472.68

Non-current assets：

Loans and payment on other’s behalf

disbursed

Creditor's right investment

Other investment on bonds

Long-term receivable

Long term share equity investment 3311674455.49 3255739898.36

Other equity instruments investment 1640561001.25 1835822604.77

Other non-current financial assets

Property investment 3220941.13 3331500.37

Fixed assets 8709189223.95 8925700473.65

Construction in progress 169594866.22 229098299.48

Production physical assets

Oil & gas assets

Use right assets

Intangible assets 5394247.13 6393895.17

Development expenses

Goodwill

Long-germ expenses to be amortized 1061255.72 1114764.44

Deferred income tax asset 372498584.43 385494106.13

Other non-current asset 34923769.57 50909325.73

Total of non-current assets 14248118344.89 14693604868.10

Total of assets 17473461012.92 17674545340.78

Current liabilities

Short-term loans

Loan from Central Bank

Items June 302020 December 302019

Borrowing funds

Transactional financial liabilities

Derivative financial liabilities

Notes payable

Account payable 304813240.45 290657734.31

Advance receipts 11199716.35 15605094.69

Contract liabilities 108100.88

Selling of repurchased financial assets

Deposit taking and interbank deposit

Entrusted trading of securities

Entrusted selling of securities

Employees’ wage payable 20189767.97 14822524.70

Tax payable 37853454.17 84257586.94

Other account payable 1425833813.99 626180586.92

Including：Interest payable

Dividend payable 954302889.90 20020119.31

Fees and commissions payable

Reinsurance fee payable

Liabilities held for sales

Non-current liability due within 1 year 159172771.75 795861958.07

Other current liability 1603872.74 189628.17

Total of current liability 1960774738.30 1827575113.80

Non-current liabilities：

Reserve fund for insurance contracts

Long-term loan 4704892500.00 4640425000.00

Bond payable 1426014144.87 678124972.89

Including：preferred stock

Sustainable debt

Lease liability

Long-term payable 40406172.36 39369379.91

Long-term remuneration payable to staff

Expected liabilities

Deferred income 32279824.81

Items June 302020 December 302019

Deferred income tax liability 192395432.59 238453976.29

Other non-current liabilities

Total non-current liabilities 6395988074.63 5596373329.09

Total of liability 8356762812.93 7423948442.89

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stock

Sustainable debt

Capital reserves 2566524645.31 2562570465.31

Less：Shares in stock

Other comprehensive income 238280420.37 382193344.90

Special reserve

Surplus reserves 910425068.90 910425068.90

Common risk provision

Retained profit 2989281402.29 3877431844.64

Total of owner’s equity belong to the

parent company

8795317662.87 9823426849.75

Minority shareholders’ equity 321380537.12 427170048.14

Total of owners’ equity 9116698199.99 10250596897.89

Total of liabilities and owners’ equity 17473461012.92 17674545340.78

Legal Representative: Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting：Fang Zhi

Accounting Dept Leader: Zhou Fang

2.Parent Company Balance Sheet

In RMB

Items June 302020 December 312019

Current asset：

Monetary fund 3009059379.39 2791384501.78

Transactional financial assets

Derivative financial assets

Notes receivable

Account receivable 21134758.62 21864051.27

Financing of receivables

Prepayments 1477900.00 1737598.88

Other account receivable 173590519.85 13435651.19

Including：Interest receivable

Dividend receivable 166906851.62 7205472.90

Inventories

Contract assets

Assets held for sales

Non-current asset due within 1 year 178335084.79 151637139.08

Other current asset 310673.32

Total of current assets 3383908315.97 2980058942.20

Non-current assets：

Debt investment 539903684.98 537903684.98

Other investment on bonds

Long-term receivable

Long term share equity investment 4845339464.30 4789404907.17

Other equity instruments investment 1640561001.25 1835822604.77

Other non-current financial assets

Property investment 2968802.88 3079362.12

Fixed assets 6600491692.05 6818701482.08

Construction in progress 21047579.91 46952925.08

Production physical assets

Oil & gas assets

Use right assets

Intangible assets 2151767.67 2533878.12

Items June 302020 December 312019

Development expenses

Goodwill

Long-germ expenses to be amortized

Deferred income tax asset 372284373.89 385296935.33

Other non-current asset 20941346.07 36901029.57

Total of non-current assets 14045689713.00 14456596809.22

Total of assets 17429598028.97 17436655751.42

Current liabilities

Short-term loans

Transactional financial liabilities

Derivative financial liabilities

Notes payable

Account payable 176971650.64 129930285.56

Advance receipts

Contract Liabilities

Employees’ wage payable 5941810.21 6340740.61

Tax payable 5063328.85 8704510.83

Other account payable 1330815068.94 582131356.01

Including：Interest payable

Dividend payable 902319096.99 20020119.31

Liabilities held for sales

Non-current liability due within 1

year

121198409.74 744589133.72

Other current liability 660427825.56 821133339.57

Total of current liability 2300418093.94 2292829366.30

Non-current liabilities：

Long-term loan 4223862500.00 4243730000.00

Bond payable 1426014144.87 678124972.89

Including：preferred stock

Sustainable debt

Lease liability

Long-term payable 40406172.36 39369379.91

Long-term remuneration payable to

staff

Items June 302020 December 312019

Expected liabilities

Deferred income 15044550.85

Deferred income tax liability 81162955.68 129978356.56

Other non-current liabilities

Total non-current liabilities 5786490323.76 5091202709.36

Total of liability 8086908417.70 7384032075.66

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stock

Sustainable debt

Capital reserves 2978412876.93 2974458696.93

Less：Shares in stock

Other comprehensive income 238280420.37 382193344.90

Special reserve

Surplus reserves 894580785.25 894580785.25

Retained profit 3140609402.72 3710584722.68

Total of owners’ equity 9342689611.27 10052623675.76

Total of liabilities and owners’

equity

17429598028.97 17436655751.42

Legal Representative :Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting：Fang Zhi

Accounting Dept Leader: Zhou Fang

3.Consolidated Income statement

In RMB

Items The first half year of 2020 The first half year of 2019

I. Income from the key business 660898961.79 1483673245.21

Incl：Business income 660898961.79 1483673245.21

Interest income

Insurance fee earned

Fee and commission received

II. Total business cost 714453628.80 736685807.33

Incl：Business cost 524175125.06 549623810.49

Interest expense

Fee and commission paid

Insurance discharge payment

Net claim amount paid

Net amount of withdrawal of insurance

contract reserve

Insurance policy dividend paid

Reinsurance expenses

Business tax and surcharge 3673803.97 6557023.97

Sales expense

Administrative expense 67990919.48 76975210.47

R & D costs

Financial expenses 118613780.29 103529762.40

Including：Interest expense 131774768.90 115040857.71

Interest income 14760756.18 15761707.69

Add: Other income 3871289.20 420227.62

Investment gain（“-”for loss） 106638564.53 276241866.32

Incl: investment gains from affiliates 55853351.49 237712998.09

Financial assets measured at

amortized cost cease to be recognized

as income

Gains from currency exchange

Net exposure hedging income

Changing income of fair value

Items The first half year of 2020 The first half year of 2019

Credit impairment loss -236683.81

Impairment loss of assets

Assets disposal income 4.37 13129094.29

III. Operational profit（“-”for loss） 56718507.28 1036778626.11

Add ：Non-operational income 4077676.95 735359.76

Less: Non-operating expense 2192008.48 4231407.95

IV. Total profit(“-”for loss) 58604175.75 1033282577.92

Less：Income tax expenses 43240151.04 189696774.05

V. Net profit 15364024.71 843585803.87

(I) Classification by business

continuity

1.Net continuing operating profit

2.Termination of operating net profit

(II) Classification by ownership

1.Net profit attributable to the owners

of parent company

-5830257.18 736486112.30

2.Minority shareholders’ equity 21194281.89 107099691.57

VI. Net after-tax of other

comprehensive income

-143912924.53 18938083.74

Net of profit of other comprehensive

income attributable to owners of the

parent company.

-143912924.53 18938083.74

（I）Other comprehensive income

items that will not be reclassified into

gains/losses in the subsequent

accounting period

-146446202.64 19408532.88

1.Re-measurement of defined benefit

plans of changes in net debt or net

assets

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 instruments

-146446202.64 19408532.88

4. Changes in the fair value of the

company’s credit risks

Items The first half year of 2020 The first half year of 2019

5.Other（II）

Other comprehensive income that will

be reclassified into profit or loss.

2533278.11 -470449.14

1.Other comprehensive income

under the equity method investee can

be reclassified into profit or loss.

2533278.11 -470449.14

2. Changes in the fair value of

investments in other debt obligations

3. Other comprehensive income arising

from the reclassification of financial

assets

4.Allowance for credit impairments in

investments in other debt obligations

5. Reserve for cash flow hedges

6.Translation differences in currency

financial statements

7.Other

Net of profit of other comprehensive

income attributable to Minority

shareholders’ equity

VII. Total comprehensive income -128548899.82 862523887.61

Total comprehensive income

attributable to the owner of the parent

company

-149743181.71 755424196.04

Total comprehensive income

attributable minority shareholders

21194281.89 107099691.57

VIII. Earnings per share

（I）Basic earnings per share -0.0028 0.35

(II)Diluted earnings per share -0.0028 0.35

The current business combination under common control the net profits of the combined party before achieved

net profit of RMB 0.00 last period the combined party realized RMB0.00.Legal Representative: Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting：Fang Zhi

Accounting Dept Leader: Zhou Fang

4. Income statement of the Parent Company

In RMB

Items The first half year of 2020 The first half year of 2019

I. Income from the key business 293579730.04 623126517.35

Incl：Business cost 328657958.84 329190674.52

Business tax and surcharge 2414928.72 3486292.37

Sales expense

Administrative expense 40263656.49 46996060.64

R & D expense

Financial expenses 111941828.19 96377160.24

Including：Interest expenses 126623134.06 109559414.30

Interest income 14718213.69 15652128.26

Add：Other income 1348815.87 70758.72

Investment gain（“-”for loss） 513084202.15 975659501.70

Including: investment gains from

affiliates

55853351.49 237712998.09

Financial assets measured at

amortized cost cease to be recognized

as income

Net exposure hedging income

Changing income of fair value

Credit impairment loss

Impairment loss of assets

Assets disposal income 4.37

II. Operational profit（“-”for loss） 324734380.19 1122806590.00

Add ：Non-operational income 1033092.43 298935.96

Less：Non -operational expenses 410045.97 370829.17

III. Total profit(“-”for loss) 325357426.65 1122734696.79

Less：Income tax expenses 13012561.44 44083178.65

IV. Net profit 312344865.21 1078651518.14

1.Net continuing operating profit 312344865.21 1078651518.14

2.Termination of operating net profit

V. Net after-tax of other

comprehensive income

-143912924.53 18938083.74

（I）Other comprehensive income -146446202.64 19408532.88

Items The first half year of 2020 The first half year of 2019

items that will not be reclassified into

gains/losses in the subsequent

accounting period

1.Re-measurement of defined benefit

plans of changes in net debt or net

assets

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

instruments

-146446202.64 19408532.88

4. Changes in the fair value of the

company’s credit risks

5.Other

(II)Other comprehensive income

that will be reclassified into profit or

loss

2533278.11 -470449.14

1.Other comprehensive

income under the equity method

investee can be reclassified into profit

or loss.

2533278.11 -470449.14

2. Changes in the fair value of

investments in other debt obligations

3. Other comprehensive income

arising from the reclassification of

financial assets

4.Allowance for credit impairments

in investments in other debt

obligations

5. Reserve for cash flow hedges

6.Translation differences in currency

financial statements

7.Other

VI. Total comprehensive income 168431940.68 1097589601.88

VII. Earnings per share

（I）Basic earnings per share

(II)Diluted earnings per share

Legal Representative: Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting：Fang Zhi

Accounting Dept Leader: Zhou Fang

5. Consolidated Cash flow statement

In RMB

Items The first half year of 2020 The first half year of 2019

I.Cash flows from operating activities

Cash received from sales of goods or

rending of services

663862643.34 1509571069.40

Net increase of customer deposits

and capital kept for brother company

Net increase of loans from central

bank

Net increase of inter-bank loans from

other financial bodies

Cash received against original

insurance contract

Net cash received from reinsurance

business

Net increase of client deposit and

investment

Cash received from interest

commission charge and commission

Net increase of inter-bank fund

received

Net increase of repurchasing business

Net cash received by agent in

securities trading

Tax returned 77578.62

Other cash received from business

operation

72322240.45 25618718.28

Sub-total of cash inflow 736262462.41 1535189787.68

Cash paid for purchasing of

merchandise and services

67174129.05 92703135.93

Net increase of client trade and

advance

Items The first half year of 2020 The first half year of 2019

Net increase of savings in central

bank and brother company

Cash paid for original contract

claim

Net increase in financial assets

held for trading purposes

Net increase for Outgoing call loan

Cash paid for interest processing

fee and commission

Cash paid to staffs or paid for staffs 131184471.77 143256732.77

Taxes paid 99376789.76 210497035.66

Other cash paid for business activities 20620967.49 37921786.09

Sub-total of cash outflow from

business activities

318356358.07 484378690.45

Net cash generated from /used in

operating activities

417906104.34 1050811097.23

II. Cash flow generated by investing

Cash received from investment

retrieving

Cash received as investment gains 133441465.51 176375388.78

Net cash retrieved from disposal of

fixed assets intangible assets and

other long-term assets

17625.00 13961500.00

Net cash received from disposal of

subsidiaries or other operational units

Other investment-related cash

received

Sub-total of cash inflow due to

investment activities

133459090.51 190336888.78

Cash paid for construction of fixed

assets intangible assets and

other long-term assets

191735294.09 414305542.74

Cash paid as investment 80000000.00

Net increase of loan against pledge

Net cash received from subsidiaries

and other operational units

Other cash paid for investment

Items The first half year of 2020 The first half year of 2019

activities

Sub-total of cash outflow due to

investment activities

271735294.09 414305542.74

Net cash flow generated by

investment

-138276203.58 -223968653.96

III.Cash flow generated by financing

Cash received as investment

Including: Cash received as

investment from minor shareholders

Cash received as loans 1195000000.00 2231700000.00

Other financing –related cash

received

Sub-total of cash inflow from

financing activities

1195000000.00 2231700000.00

Cash to repay debts 1083917500.00 1620130000.00

Cash paid as dividend profit or

interests

148014375.80 1522586583.81

Including: Dividend and profit paid

by subsidiaries to minor shareholders

75000000.00 220140964.92

Other cash paid for financing

activities

1122177.00 791384.00

Sub-total of cash outflow due to

financing activities

1233054052.80 3143507967.81

Net cash flow generated by financing -38054052.80 -911807967.81

IV. Influence of exchange rate

alternation on cash and cash

equivalents

-1534520.73

V.Net increase of cash and cash

equivalents

241575847.96 -86500045.27

Add: balance of cash and cash

equivalents at the beginning of term

2816699694.50 2123303796.32

VI ..Balance of cash and cash

equivalents at the end of term

3058275542.46 2036803751.05

Legal Representative: Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting：Fang Zhi

Accounting Dept Leader: Zhou Fang

6. Cash Flow Statement of the Parent Company

In RMB

Items The first half year of 2020 The first half year of 2019

I.Cash flows from operating activities

Cash received from sales of goods or

rending of services

302123119.55 641027153.33

Tax returned

Other cash received from business

operation

63304430.86 24885810.30

Sub-total of cash inflow 365427550.41 665912963.63

Cash paid for purchasing of

merchandise and services

15346627.62 24226244.52

Cash paid to staffs or paid for staffs 52390979.85 56174438.87

Taxes paid 13428897.71 24543436.06

Other cash paid for business activities 201770756.58 444674884.91

Sub-total of cash outflow from

business activities

282937261.76 549619004.36

Net cash generated from /used in

operating activities

82490288.65 116293959.27

II. Cash flow generated by investing

Cash received from investment

retrieving

Cash received as investment gains 358767434.26 846967754.67

Net cash retrieved from disposal of

fixed assets intangible assets and

other long-term assets

6300.00 3700.00

Net cash received from disposal of

subsidiaries or other operational units

Other investment-related cash

received

Sub-total of cash inflow due to

investment activities

358773734.26 846971454.67

Cash paid for construction of fixed

assets intangible assets and

other long-term assets

118535092.50 399081697.08

Items The first half year of 2020 The first half year of 2019

Cash paid as investment 82000000.00

Net cash received from subsidiaries

and other operational units

Other cash paid for investment

activities

Sub-total of cash outflow due to

investment activities

200535092.50 399081697.08

Net cash flow generated by

investment

158238641.76 447889757.59

III. Cash flow generated by financing

Cash received as investment

Cash received as loans 1135000000.00 1845000000.00

Other financing –related ash

received

Sub-total of cash inflow from

financing activities

1135000000.00 1845000000.00

Cash to repay debts 1083917500.00 1197780000.00

Cash paid as dividend profit or

interests

73014375.80 1289730502.83

Other cash paid for financing

activities

1122177.00 791384.00

Sub-total of cash outflow due to

financing activities

1158054052.80 2488301886.83

Net cash flow generated by financing -23054052.80 -643301886.83

IV. Influence of exchange rate

alternation on cash and cash

equivalents

-1534520.73

V.Net increase of cash and cash

equivalents

217674877.61 -80652690.70

Add: balance of cash and cash

equivalents at the beginning of term

2790163301.78 2095376368.04

VI ..Balance of cash and cash

equivalents at the end of term

3007838179.39 2014723677.34

Legal Representative: Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting：Fang Zhi

Accounting Dept Leader: Zhou Fang

7. Consolidated Statement on Change in Owners’ Equity

Amount in this period

In RMB

Items

The first half year of 2020

Owner’s equity Attributable to the Parent Company

Minor

shareholders

’ equity

Total of

owners’

equity

Capital

Other Equity instrument

Capital

reserves

Less:

stock

Other

Comprehensive

Income

Specialized

reserve

Surplus

reserves

Common

risk

provision

Retained

profit

Other SubtotalPreferred

stock

Sustainable

debt

Other

I.Balance at the end

of last year

20908

06126.

256257

0465.31

382193344.90

910425

068.90

387743

1844.64

98234

26849.

427170048.

1025059

6897.89

Add: Change of

accounting policy

Correcting of

previous errors

Merger of entities

under common

control

Other

II.Balance at the

beginning of current

year

20908

06126.

256257

0465.31

382193344.90

910425

068.90

387743

1844.64

98234

26849.

427170048.

1025059

6897.89

III.Changed in the

current year

395418

0.00

-143912924.5

-888150

442.35

-10281

09186.

-105789511

.02

-1133898

697.90

Items

The first half year of 2020

Owner’s equity Attributable to the Parent Company

Minor

shareholders

’ equity

Total of

owners’

equity

Capital

Other Equity instrument

Capital

reserves

Less:

stock

Other

Comprehensive

Income

Specialized

reserve

Surplus

reserves

Common

risk

provision

Retained

profit

Other SubtotalPreferred

stock

Sustainable

debt

Other

（1）Total

comprehensive

income

-143912924.5

-583025

7.18

-14974

3181.7

21194281.8

-1285488

99.82（II）Investment or

decreasing of capital

by owners

1Ordinary Shares

invested by

shareholders

2Holders of other

equity instruments

invested capital

3．Amount of shares

paid and accounted

as owners’ equity

4．Other（III）Profit

allotment

-882320

185.17

-88232

0185.1

-12698379

2.91

-1009303

978.08

1.Providing of

surplus reserves

Items

The first half year of 2020

Owner’s equity Attributable to the Parent Company

Minor

shareholders

’ equity

Total of

owners’

equity

Capital

Other Equity instrument

Capital

reserves

Less:

stock

Other

Comprehensive

Income

Specialized

reserve

Surplus

reserves

Common

risk

provision

Retained

profit

Other SubtotalPreferred

stock

Sustainable

debt

Other

2.Providing of

common risk

provisions

3．Allotment to the

owners (or

shareholders)

-882320

185.17

-88232

0185.1

-12698379

2.91

-1009303

978.08

4．Other

(IV) Internal

transferring of

owners’ equity

1. Capitalizing of

capital reserves (or

to capital shares)

2. Capitalizing of

surplus reserves (or

to capital shares)

3．Making up losses

by surplus reserves.

4.Change amount of

defined benefit

plans that carry

forward

Retained earnings

Items

The first half year of 2020

Owner’s equity Attributable to the Parent Company

Minor

shareholders

’ equity

Total of

owners’

equity

Capital

Other Equity instrument

Capital

reserves

Less:

stock

Other

Comprehensive

Income

Specialized

reserve

Surplus

reserves

Common

risk

provision

Retained

profit

Other SubtotalPreferred

stock

Sustainable

debt

Other

5．Other

comprehensive

income carry-over

retained earnings

6．Other

(V). Special

reserves

1. Provided this year

2．Used this term（VI）Other

395418

0.00

39541

80.00

3954180.

IV. Balance at the

end of this term

20908

06126.

256652

4645.31

238280420.37

910425

068.90

298928

1402.29

87953

17662.

321380537.

9116698

199.99

Amount in last year

In RMB

Items

The first half year of 2019

Owner’s equity Attributable to the Parent Company

Minor

shareholders’

equity

Total of

owners’

equity

Capital

Other Equity instrument

Capital

reserves

Less: Shares

in stock

Other

Comprehensive

Income

Specialized

reserve

Surplus

reserves

Common risk

provision

Retained

profit

Other SubtotalPrefer

red

stock

Sustai

nable

debt

Other

I.Balance at the end of

last year

20908

06126.

253677

4965.31

245109114.81

7754025

61.35

3938609

136.59

95867

01904.

459599723.8

1004630

1627.93

Add: Change of

accounting policy

11064350.29

-1135341

3.48

-28906

3.19

-289063.

Correcting of previous

errors

Merger of entities under

common control

Other

II.Balance at the

beginning of current

year

20908

06126.

253677

4965.31

256173465.10

7754025

61.35

3927255

723.11

95864

12840.

459599723.8

1004601

2564.74

III.Changed in the

current year

257955

00.00

18938083.74

-4385469

30.51

-39381

3346.7

-116287013.

-510100

360.49

（1）Total

comprehensive income

18938083.74

7364861

12.30

755424

196.04

107099691.5

8625238

87.61

Items

The first half year of 2019

Owner’s equity Attributable to the Parent Company

Minor

shareholders’

equity

Total of

owners’

equity

Capital

Other Equity instrument

Capital

reserves

Less: Shares

in stock

Other

Comprehensive

Income

Specialized

reserve

Surplus

reserves

Common risk

provision

Retained

profit

Other SubtotalPrefer

red

stock

Sustai

nable

debt

Other（II）Investment or

decreasing of capital by

owners

1Ordinary Shares

invested by shareholders

2Holders of other equity

instruments invested

capital

3．Amount of shares paid

and accounted as

owners’ equity

4．Other（III）Profit allotment

-1175033

042.81

-11750

33042.

-223386705.

-139841

9748.10

1.Providing of surplus

reserves

2.Providing of common

Items

The first half year of 2019

Owner’s equity Attributable to the Parent Company

Minor

shareholders’

equity

Total of

owners’

equity

Capital

Other Equity instrument

Capital

reserves

Less: Shares

in stock

Other

Comprehensive

Income

Specialized

reserve

Surplus

reserves

Common risk

provision

Retained

profit

Other SubtotalPrefer

red

stock

Sustai

nable

debt

Other

risk provisions

3．Allotment to the

owners (or shareholders)

-1175033

042.81

-11750

33042.

-223386705.

-139841

9748.10

4．Other

(IV) Internal transferring

of owners’ equity

1. Capitalizing of capital

reserves (or to capital

shares)

2. Capitalizing of

surplus reserves (or to

capital shares)

3．Making up losses by

surplus reserves.

4.Change amount of

defined benefit plans

that carry forward

Items

The first half year of 2019

Owner’s equity Attributable to the Parent Company

Minor

shareholders’

equity

Total of

owners’

equity

Capital

Other Equity instrument

Capital

reserves

Less: Shares

in stock

Other

Comprehensive

Income

Specialized

reserve

Surplus

reserves

Common risk

provision

Retained

profit

Other SubtotalPrefer

red

stock

Sustai

nable

debt

Other

Retained earnings

5．Other comprehensive

income carry-over

retained earnings

6．Other

(V). Special reserves

1. Provided this year

2．Used this term（VI）Other

257955

00.00

25795

500.00

2579550

0.00

IV. Balance at the end of

this term

20908

06126.

256257

0465.31

275111548.84

7754025

61.35

3488708

792.60

91925

99494.

343312710.1

9535912

204.25

Legal Representative: Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang

8.Statement of change in owner’s Equity of the Parent Company

Amount in this period

In RMB

Items

The first half year of 2020

Share capital

Other Equity instrument

Capital

reserves

Less:

in stock

Other

Comprehensiv

e Income

Speciali

zed

reserve

Surplus

reserves

Retained

profit

Other

Total of

owners’

equity

Prefe

rred

stock

Sustain

able

debt

Other

I.Balance at the end of last year 2090806126.00

2974458

696.93

382193344.9

894580785

.25

3710584722

.68

1005262

3675.76

Add: Change of accounting policy

Correcting of previous errors

Other

II.Balance at the beginning of current

year

2090806126.00

2974458

696.93

382193344.9

894580785

.25

3710584722

.68

1005262

3675.76

III.Changed in the current year

3954180.

-143912924.

-569975319.

-709934

064.49

（I）Total comprehensive income

-143912924.

312344865.2

1684319

40.68

(II) Investment or decreasing of capital

by owners

1 ． Ordinary Shares invested by

shareholders

2．Holders of other equity instruments

invested capital

3.Amount of shares paid and accounted

as owners’ equity

Items

The first half year of 2020

Share capital

Other Equity instrument

Capital

reserves

Less:

in stock

Other

Comprehensiv

e Income

Speciali

zed

reserve

Surplus

reserves

Retained

profit

Other

Total of

owners’

equity

Prefe

rred

stock

Sustain

able

debt

Other

4．Other（III）Profit allotment

-882320185.

-882320

185.17

1.Providing of surplus reserves

2．Allotment to the owners (or

shareholders)

3．Other

-882320185.

-882320

185.17

(IV) Internal transferring of owners’

equity

1. Capitalizing of capital reserves (or to

capital shares)

2. Capitalizing of surplus reserves (or to

capital shares)

3．Making up losses by surplus reserves.

4.Change amount of defined benefit

plans that carry forward

Retained earnings

5．Other comprehensive income

carry-over retained earnings

Items

The first half year of 2020

Share capital

Other Equity instrument

Capital

reserves

Less:

in stock

Other

Comprehensiv

e Income

Speciali

zed

reserve

Surplus

reserves

Retained

profit

Other

Total of

owners’

equity

Prefe

rred

stock

Sustain

able

debt

Other

6．Other

(V) Special reserves

1. Provided this year

2．Used this term（VI）Other

3954180.

IV. Balance at the end of this term 2090806126.00

2978412

876.93

238280420.3

894580785

.25

3140609402

.72

9342689

611.27

Amount in last year

In RMB

Items

The first half year of 2019

Share Capital

Other Equity instrument

Capital

reserves

Less:

s in

stock

Other

Comprehensive

Income

Special

ized

reserve

Surplus

reserves

Retained profit Other

Total of

owners’equityPreferred

stock

Sust

aina

ble

debt

Other

I.Balance at the end of last year

2090806126

.00

2948663196

.93

245109114.81

759558277

.70

3680165040.86

9724301756.

Add: Change of accounting policy 11064350.29 -11353413.48 -289063.19

Correcting of previous errors

Other

II.Balance at the beginning of current

year

2090806126

.00

2948663196

.93

256173465.10

759558277

.70

3668811627.38

9724012693.

III.Changed in the current year 25795500.00 18938083.74 -96381524.67 -51647940.93

（I）Total comprehensive income 18938083.74 1078651518.14

1097589601.

(II) Investment or decreasing of capital

by owners

1 ． Ordinary Shares invested by

shareholders

2．Holders of other equity instruments

invested capital

Items

The first half year of 2019

Share Capital

Other Equity instrument

Capital

reserves

Less:

s in

stock

Other

Comprehensive

Income

Special

ized

reserve

Surplus

reserves

Retained profit Other

Total of

owners’equityPreferred

stock

Sust

aina

ble

debt

Other

3.Amount of shares paid and accounted

as owners’ equity

4．Other（III）Profit allotment -1175033042.81

-1175033042.

1.Providing of surplus reserves

2．Allotment to the owners (or

shareholders)

3．Other -1175033042.81

-1175033042.

(IV) Internal transferring of owners’

equity

1. Capitalizing of capital reserves (or to

capital shares)

2. Capitalizing of surplus reserves (or to

capital shares)

3．Making up losses by surplus reserves.

4.Change amount of defined benefit

plans that carry forward

Items

The first half year of 2019

Share Capital

Other Equity instrument

Capital

reserves

Less:

s in

stock

Other

Comprehensive

Income

Special

ized

reserve

Surplus

reserves

Retained profit Other

Total of

owners’equityPreferred

stock

Sust

aina

ble

debt

Other

Retained earnings

5．Other comprehensive income

carry-over retained earnings

6．Other

(V) Special reserves

1. Provided this year

2．Used this term（VI）Other 25795500.00 25795500.00

IV. Balance at the end of this term

2090806126

.00

2974458696

.93

275111548.84

759558277

.70

3572430102.71

9672364752.

Legal Representative: Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang

III. Company Profile

1. Basic information of the IPO and share capital of the company

1.The Company was established in February 1993 which was originally named as Guangdong Fokai Expressway

Co. Ltd. On June 30 1993 it was renamed as Guangdong Provincial Expressway Development Co. Ltd. after

reorganization pursuant to the approval of the Office of Joint Examination Group of Experimental Units of Share

Holding System with YLSB (1993)No. 68 document. The share capital structure after reorganization is as follows:

Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang Bridge

Co. and Guangfo Expressway Co. Ltd. as of January 31 1993 confirmed by Guangdong State-owned Asset

Management Dept. i.e.RMB 418.2136 million was converted into 155.025 million shares. Guangdong

Expressway Co. invested cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal persons

invested cash of RMB 286.992 million to subscribe for 89.685 million shares. Staff of the Company invested

RMB 87.008 million to subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.

2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities

Regulatory Commission with YTG (1996) No. 67 document part of the shareholders of non-state-owned legal

person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co. Ltd.in June 1996.

3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval

document and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document the

Company issued 135 million domestically listed foreign investment shares (B shares) to overseas investors at the

price of HKD 3.54 (equivalent to RMB 3.8) with the par value of each share being RMB 1 during June to July

1996.

4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic of

China with (1996) WJMZYHZ No. 606 document the Company was approved to be a foreign-invested joint

stock company limited.

5．The Company distributed dividends and capitalized capital common reserve for the year 1996 in the following

manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common reserve on

3.3-for-10 basis.

6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and No.

487 document the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term of

“payable in full on application pro-rate placing and subject to refund” with the par value of each share being

RMB 1 in January 1998.

7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant

to the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that of

CSRC with ZJGSZ (2000) No. 98 the Company offered 3 Rights for every 10 shares of 764.256249 million

shares at the price of RMB 11 per Right.73822250 ordinary shares were actually placed to all .

8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH

(2000) No. 574 document the state-owned shares were transferred to Guangdong Communication Group Co.

Ltd. (Group Co.) for holding and management without compensation.

9.Pursuant to the approval of Shenzhen Stock Exchange 53.0205 million staff shares of the Company (132722

shares held by directors supervisors and senior executives are temporarily frozen) were listed on February 5

2001.

10.In accordance with the resolutions of 2000 annual shareholders’ general meeting the Company capitalized

capital common reserve into 419039249 shares on 5-for-10 basis with the total share capital as of the end of 2000

i.e. 838078499 shares as base. The date of stock right registration was May 21 2001. The ex-right date was May

22 2001.

11 ． On March 8 2004As approved by China Securities Regulatory Commission by document

Zheng-Jian-Gong-Si-Zi [2003]No.3 the 45000000 non-negotiable foreign shares were placed in Shenzhen Stock

12. On December 21 2005 the Company's plan for share holding structure reform was voted through at theshareholders' meeting concerning A shares. On January 26 2006 The Ministry of Commerce of PRC issued “Theapproval on share converting of Guangdong Provincial Expressway Development Co. Ltd.” to approve the shareequity relocation and transformation. On October 9 2006 according to the“Circular about implementing of shareequity relocation and relative trading”issued by Shenzhen Stock Exchange the abbreviation ID of the Company’

s A shares was restored from “G-Expressway” “Expressway A”.

13. Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to

Parties such as Guangdong Provincial Expressway Co. Ltd to Purchase Assets and Raise Matching Funds by

Guangdong Provincial Expressway Development Co. Ltd in June 2016 the company issued 33355263 shares

and paid RMB 803.50 million to Guangdong Provincial Expressway Co. Ltd for purchasing the 25% stake of

Guangdong Provincial Fokai Expressway Co. Ltd held by Guangdong Provincial Expressway Co. Ltd; and

issued 466325020 shares to Guangdong Provincial Highway Construction Co. Ltd for purchasing the 100%

stake of Guangzhou Guangzhu Traffic Investment Management Co. Ltd held by Guangdong Provincial Highway

Construction Co. Ltd. On June 21 2016 the company directionally issued 334008095 A-shares to Yadong

Fuxing Yalian Investment Co.Ltd Tibet Yinyue Investment Management Co.Ltd and GF Securities Co.Ltd.

The issuance of shares have been registered on July 7 2016 the new shares will be listed on July 8 2016.

2. Company's registered place and headquarters address

Company name：Guangdong Provincial Expressway Development Co. Ltd.

Registration placeNo.85 Baiyun Road Yuexiu District Guangzhou.Headquarters Office ：45-46/F Litong Plaza No.32 Zhujiang East Road Zhujiang New City Tihe Disrtict

Guangzhou

3. Business nature and main business activities

Industry and main products of the company: highway management and maintenance.General business items: investment construction charging maintenance and service management of

expressways grade roads and bridges; Automobile rescue service maintenance and cleaning; Parking lot charges;

Design production release and agency of all kinds of advertisements at home and abroad; Land development

along the highway; Warehousing business; Intelligent transportation technology research and development and

service; Equity investment management and consultation. (Projects that must be approved according to law can

be operated only after being approved by relevant departments).The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai Expressway and

Jingzhu Expressway Guangzhu Section investment in technological industries and provision of relevant

consultation while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangzhou Guanghui Expressway Co.Ltd.Jingzhu Expressway Guangzhu Co. Ltd.Guangdong Jiangzhong Expressway Co. Ltd. Zhaoqing Yuezhao

Expressway Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke

Technology Micro Loan Co. Ltd.Guangdong Guangle Expressway Co.Ltd.， Guoyuan Securities Co. Ltd.andHunan Lianzhi Technology Co. Ltd.

4. Scope and changes of consolidated financial statements in the current period

(1) Scope of current consolidated financial statements

The consolidated scope of the current financial statements invovles Guangdong Expressway Technology

Investment Co. Ltd. Guangzhou Guangzhu Transportation Investment Management Co. Ltd. Yuegao Capital

Investment (Hengqin) Co. Ltd. its holding subsidiaries Guangfo Expressway Co. Ltd. and Jingzhu Expressway

Guangzhu Section Co. Ltd..

(2) Changes in the scope of consolidated financial statements in the current period

None

5. Approval and submission date of financial report

The financial statements have been authorized for issuance by the Board of Directors of the Group on August

25 2020.

IV. Basis for the preparation of financial statements

1.Preparation basis

The financial statements of the Company have been prepared on basis of going concern in conformity with

Chinese Accounting Standards for Business Enterprises and the Accounting Systems for Business Enterprises

issued by the Ministry of Finance of People’s Republic of China (Ministry of Finance issued order No.33 the

Ministry of Finance revised order No.76) on February 15 2006 and revised Accounting Standards (order 42 of

the Ministry of Finance) and Compilation Rules for Information Disclosure by Companies Offering Securities to

the Public No.15 – General Provisions on Financial Reports (2014 Revision) issued by the China Securities

Regulatory Commission (CSRC).

According to the relevant accounting regulations in Chinese Accounting Standards for Business Enterprises

the Company has adopted the accrual basis of accounting. Held-for-sale non-current assets are measured at the

lower of its book value at its classification date and fair value minus expected disposal costs. Where assets are

impaired provisions for asset impairment are made in accordance with relevant requirements

2.Continuation

There will be no such events or situations in the 12 months from the end of the reporting period that will cause

material doubts as to the continuation capability of the Company.V. Significant Accounting Policies and Accounting Estimates

1. Statement of Compliance with the Accounting Standards for Business Enterprises

The financial statements of the Company are recognized and measured in accordance with the regulations in

the Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial

position business result and cash flow of the Company as of June 30 2020 and from January to June 2020. In

addition the financial statements of the Company comply in all material respects with the revised disclosing

requirements for financial statements and the Compilation Rules for Information Disclosure by Companies

Offering Securities to the Public No.15—General Provisions on Financial Reports (2014 Revision) issued by

China Securities Regulatory Commission (CSRC) in 2014.

2. Accounting period

The accounting period of the Company is classified as interim period and annual period. Interim period

refers to the reporting period shorter than a complete annual period. The accounting period of the Company is the

calendar year from January 1 to December 31.

3.Operating cycle

The normal operating cycle refers to the period from the time when the Group purchases assets for processing to

the time when cash or cash equivalents are realized. The Company takes 12 months as a business cycle and uses it

as a criterion for liquidity classification of assets and liabilities.

4.Standard currency for bookkeeping

The Company adopts CNY to prepare its functional statements.

5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same

Control

1.Business Combinations under the Same Control

If business participating in the combination are ultimately controlled by the same party or parties before and

after the combination and the control is not temporary it is an business combination under the same control.Usually business combination under the same control refers to the combination between business within the same

business except which it is generally not regarded as business combination under the same control.The assets and liabilities obtained by the Company as the combining party in the business combination shall

be measured according to the book value of the combined party in the consolidated financial statements of the

ultimate controlling party on the combination date. For the long-term equity investment formed by holding

combination under the same control the company takes the share of the book owner's equity of the combined

party on the combination date as the initial investment cost for forming the long-term equity investment. See the

long-term equity investment for relevant accounting treatment; The assets and liabilities obtained by absorption

and combination under the same control shall be recorded by the Company according to the original book value of

the related assets and liabilities in the combined party. The company adjusts the capital reserve according to the

difference between the book value of the net assets obtained and the book value of the combination consideration

paid (or the total par value of the issued shares); If the capital reserve is insufficient to offset the retained earnings

shall be adjusted.

All directly related expenses incurred by the Company as a combining party for business combination

including audit fees evaluation fees legal service fees etc. are included in the current profits and losses when

incurred.

Fees and commissions paid for bonds issued by enterprises or other debts shall be included in the initial

measurement amount of bonds and other debts issued. Fees commissions and other expenses incurred in issuing

equity securities in business combination shall be offset against the premium income of equity securities and if

the premium income is insufficient to offset the retained earnings shall be offset.If the holding under the same control is combined to form a parent-subsidiary relationship the parent

company shall prepare consolidated financial statements on the consolidation date including consolidated balance

sheet consolidated income statement and consolidated cash flow statement.

For the consolidated balance sheet the book value of the combined party in the consolidated financial

statements of the ultimate controlling party shall be incorporated into the consolidated financial statements and

the transactions between the combining party and the combined party on the consolidation date and the previous

period shall be regarded as internal transactions and offset according to the relevant principles of "Consolidated

Financial Statements"; The consolidated income statement and cash flow statement include the net profit and cash

flow realized by the combining party and the combined party from the beginning of the current consolidation

period to the consolidation date and involve the cash flow generated by the transactions and internal transactions

between the two parties in the current period which shall be offset according to the relevant principles of the

consolidated financial statements.

2. If the parties involved in the combination are not ultimately controlled by the same party or parties before

and after the combination it is a business combination not under the same control.

Business Combinations not under the Same Control

Determine the cost of business combination: the cost of business combination includes the fair value of cash

or non-cash assets paid by the purchaser for business combination debts issued or assumed and equity securities

issued on the purchase date.In the business combination not under the same control the intermediary expenses such as auditing legal

services evaluation and consultation and other related management expenses incurred by the purchaser for the

business combination shall be included in the current profits and losses when they occur; Transaction costs of

equity securities or debt securities issued by the purchaser as combination consideration shall be included in the

initial recognized amount of equity securities or debt securities.

For the long-term equity investment obtained by holding combination not under the same control the

company takes the combination cost determined on the purchase date (excluding cash dividends and profits that

should be collected from the investee) as the initial investment cost for the long-term equity investment of the

purchaser; All identifiable assets and liabilities obtained by absorption and combination under different control

that meet the recognition conditions shall be recognized as assets and liabilities of the enterprise at fair value on

the date of purchase. If the Company takes non-monetary assets as consideration to obtain the control right of the

purchaser or various identifiable assets and liabilities the difference between the fair value of the relevant

non-monetary assets on the purchase date and their book value shall be taken as the disposal profit and loss of the

assets and recorded in the income statement of the current consolidation period.In a business combination not under the same control the difference between the cost of business

combination and the fair value share of identifiable net assets of the purchaser obtained in the combination is

recognized as goodwill; In the case of absorption and combination the difference is recognized as goodwill in the

individual financial statements of the parent company; In the case of holding combination the difference is listed

as goodwill in the consolidated financial statements.The cost of business combination is less than the difference between the fair value share of identifiable net

assets acquired during the combination which is included in the profits and losses (non-operating income) of the

current combination period after review by the Company. In the case of absorption and combination the

difference is included in the individual income statement of the parent company in the current combination period;

In the case of holding combination the difference is included in the consolidated income statement of the current

combination period.If the business combination not under the same control realized step by step through multiple exchange

transactions is a package transaction each transaction will be treated as a transaction to obtain control rights; If it

is not a package transaction the equity of the purchased party held before the purchase date shall be re-measured

according to the fair value of the equity on the purchase date and the difference between the fair value and its

book value shall be included in the current investment income; If the equity of the purchased party held before the

purchase date involves other comprehensive income other comprehensive income related to it shall be converted

into the investment income of the current period on the purchase date except for other comprehensive income

arising from the re-measurement of net liabilities or changes in net assets of the defined benefit plans by the

invested party.

6. Compilation method of consolidated financial statements

(1) Consolidation scope

The consolidation scope of consolidated financial statements is determined on the basis of control. Control

means that the Company has the power over the investee is entitled to variable returns by participating in the

related activities of the investee and has the ability to use the power over the investee to influence its return

amount. Subsidiaries refer to subjects controlled by the Company (including enterprises divisible parts of

investee(s) structured subjects etc.).

(2) Compilation method of consolidated financial statements

The consolidated financial statements of the Company are based on the financial statements of the parent

company and its subsidiaries and are prepared according to other relevant information. When compiling the

important internal transactions between the parent company and its subsidiaries such as investment transactions

purchase and sale of inventories and their unrealized profits are offset and combined item by item and the

minority shareholders' rights and interests and the current income of minority shareholders are calculated. If the

accounting policies and accounting periods of subsidiaries are inconsistent with those of the parent company the

accounting statements of subsidiaries shall be adjusted according to the accounting policies and accounting

periods of the parent company before combination.

(3) Increase and decrease the consolidated report processing of subsidiaries during the reporting period

During the reporting period when preparing the consolidated balance sheet the balance at the beginning of

the consolidated balance sheet is adjusted for the subsidiaries added due to business combination under the same

control. When preparing the consolidated balance sheet the balance at the beginning of the year of the

consolidated balance sheet is not adjusted for the subsidiaries added due to business combination not under the

same control. During the reporting period the subsidiaries are disposed of and the balance at the beginning of the

consolidated balance sheet is not adjusted when the consolidated balance sheet is prepared.

During the reporting period the income expenses and profits of subsidiaries added by business combination

under the same control from the beginning to the end of the reporting period are included in the consolidated

income statement and the cash flows from the beginning to the end of the reporting period are included in the

consolidated cash flow statement. For subsidiaries added due to business combination not under the same control

the income expenses and profits of such subsidiaries from the purchase date to the end of the reporting period are

included in the consolidated income statement and their cash flow from the purchase date to the end of the

reporting period is included in the consolidated cash flow statement. During the reporting period the subsidiary is

disposed of and the income expenses and profits from the beginning of the period to the disposal date are

included in the consolidated income statement and the cash flow from the beginning of the period to the disposal

date is included in the consolidated cash flow statement.When the control right of the original subsidiary is lost due to the disposal of part of the equity investment or

other reasons the remaining equity investment after disposal shall be re-measured according to its fair value on

the date of loss of control right. The sum of the consideration obtained from the disposal of equity and the fair

value of the remaining equity minus the difference between the share of the original subsidiary's net assets

calculated continuously from the purchase date and the sum of goodwill calculated according to the original

shareholding ratio is included in the investment income in the current period when the control right is lost. Other

comprehensive income related to the original subsidiary's equity investment is converted into current investment

income when the control right is lost except for other comprehensive income generated by the investee's

re-measurement of net liabilities or changes in net assets of the set income plan.The difference between the newly acquired long-term equity investment due to the purchase of minority

shares and the identifiable net assets share of subsidiaries calculated according to the increased shareholding ratio

and the difference between the disposal price obtained from partial disposal of equity investment in subsidiaries

and the net assets share of subsidiaries corresponding to the disposal of long-term equity investment are used to

adjust the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the

capital reserve is insufficient to offset the retained earnings will be adjusted.

(4) Processing of consolidated statements from step-by-step disposal of equity to loss of control rights

If the transactions that dispose of the equity investment in subsidiaries until the loss of control rights are of a

package transaction the transactions shall be treated as transactions that dispose of subsidiaries and lose control

rights; However the difference between the disposal price and the share of the subsidiary's net assets related to the

disposal investment before the loss of control right is recognized as other comprehensive income in the

consolidated financial statements which will be transferred to the current profit and loss when the control right is

lost except for other comprehensive income arising from the re-measurement of the net liabilities or changes in

net assets of the set income plan by the investee. If it is not a package transaction before the loss of control the

difference between the disposal price and the corresponding net assets continuously calculated by the subsidiary

from the purchase date will be adjusted to the capital reserve and if the capital reserve is insufficient to offset the

retained earnings will be adjusted; In case of loss of control right the accounting treatment shall be carried out

according to the above accounting policy when the control right over the original subsidiary is lost.

7.Joint venture arrangements classification and Co-operation accounting treatment

A joint arrangement is an arrangement of which two or more parties have joint control. A joint arrangement

is either a joint operation or a joint venture depending on the rights and obligation of the Company in the joint

arrangement. A joint operation is a joint arrangement whereby the Company has rights to the assets and

obligations for the liabilities relating to the arrangement. A joint venture is a joint arrangement whereby the

Company has rights to the net assets of the arrangement.

(1) Identification of joint venture arrangement

As long as two or more participants exercise joint control over an arrangement such arrangement can be

regarded as a joint venture arrangement and all participants are not required to be entitled to joint control over the

arrangement.

(2) Reassessment

If the legal form contract terms and other relevant facts and circumstances change the participants in the

joint venture arrangement shall reassess the joint venture arrangement: First assess whether the original joint

venture party still has joint control over the arrangement; Second assess whether the type of joint venture

arrangement has changed.

(3) Accounting treatment of participants in joint operation

① Accounting treatment of the joint venture in joint operation

A. General accounting principles

The joint venture shall recognize the following items related to its share of interests in the joint operation and

carry out accounting treatment in accordance with the relevant accounting standards for enterprises: Firstly

recognize the assets held separately and recognize the assets held jointly according to their share; Secondly

recognize the liabilities undertaken separately and recognize the liabilities jointly undertaken according to their

share; Thirdly recognize the income generated from the sale of its share of joint operating output; Fourthly

recognize the income generated by the joint operation due to the sale of output according to its share; Fifthly

recognize the expenses incurred separately and recognize the expenses incurred in joint operation according to its

share.The joint venture may use its own assets for joint operations. If the joint venture retains all ownership or

control over these assets the accounting treatment of these assets is no different from the accounting treatment of

the joint venture's own assets.The joint venture may also purchase assets together with other joint ventures to invest in joint operations and

jointly bear the liabilities of joint operations. In this case the joint venture shall recognize the interest share in

these assets and liabilities in accordance with the relevant provisions of the Accounting Standards for Business

Enterprises. For example according to the Accounting Standards for Business Enterprises No.4-Fixed Assets the

interest share in related fixed assets is recognized and the share in related financial assets and financial liabilities

is recognized according to the financial instrument recognition and measurement standards.When the joint operation is achieved through a separate entity the joint venture shall recognize the liabilities

undertaken separately according to the above principles and recognize the liabilities jointly undertaken according

to the share of the enterprise. However if the joint venture is jointly and severally liable in accordance with the

relevant laws of China or the relevant contractual stipulations due to the failure of other shareholders to provide

funds to the joint venture arrangement as agreed its accounting treatment shall be subject to the Accounting

Standards for Business Enterprises No.13-Contingencies.

B. Accounting treatment for the joint venture to invest or sell assets that do not constitute business.

When the joint venture invests or sells assets for joint operation (except that the assets constitute business)

before the joint operation sells the related assets to a third party or the related assets are consumed (i.e. the

unrealized internal profits are still included in the book value of the assets held by the joint venture) only the

gains or losses attributable to other participants in the joint venture shall be recognized. If the transaction shows

that the assets invested or sold meet the asset impairment losses specified in Accounting Standards for Business

Enterprises No.8-Asset Impairment (hereinafter referred to as "Asset Impairment Loss Standards") the joint

venture shall fully recognize the losses.

C. Accounting treatment of assets purchased by the joint venture from joint operation that do not constitute

business

Before the joint venture buys assets from joint operation (except that the assets constitute business) and sells

the assets to a third party (i.e. when unrealized internal profits are still included in the book value of assets held

by the joint venture) the share of profits and losses arising from the transaction that the joint venture is entitled to

shall not be recognized. That is at this time only the part of the profit and loss arising from the transaction that

belongs to other participants in the joint operation shall be recognized.

D. Accounting treatment of the joint venture's share of the interests of the joint operation that constitutes the

business

When the joint venture obtains the share of interests in the joint operation and the joint operation constitutes

business the corresponding accounting treatment shall be carried out in accordance with the relevant standards

such as business combination standards however the provisions of other relevant standards cannot conflict with

the provisions of the joint venture arrangement standards. The enterprise shall judge whether the joint operation

constitutes a business in accordance with the relevant provisions of the business combination standards. This

treatment principle is not only applicable to the acquisition of the share of interests in the existing joint operation

that constitutes business but also to the establishment of joint operation with other participants and because other

participants introduce the existing business the joint operation constitutes business when it is established.

② Accounting principles for participants who do not enjoy joint control over joint operations

Participants (non-joint ventures) who are not entitled to joint control of the joint operation shall be treated as

the joint ventures if they are entitled to the assets related to the joint operation and bear the liabilities related to the

joint operation. That is the participants in the joint operation regardless of whether they are entitled to joint

control or not will be subject to the same accounting treatment as the joint ventures as long as they are entitled to

the right to jointly operate related assets and undertake the liabilities obligation related to joint operation.Otherwise its profit share shall be accounted for in accordance with the relevant accounting standards for

enterprises.（(4) Accounting treatment of participants in a joint ventureIn a joint venture the participants shall account for their investment in the joint venture in accordance with

the Accounting Standards for Business Enterprises No.2-Long-term Equity Investment.Participants (non-parties) who are not entitled to joint control over the joint venture shall carry out relevant

accounting treatment according to their influence on the joint venture: if they have significant influence on the

joint venture their investment in the joint venture shall be accounted for in accordance with the provisions of the

long-term equity investment standards; If it has no significant impact on the joint venture its investment in the

joint venture shall be accounted for in accordance with the provisions of the Standards for Recognition and

Measurement of Financial Instruments.

8.Recognition Standard of Cash & Cash Equivalents

Cash and cash equivalents of the Company include cash on hand ready usable deposits and investments

having short holding term (normally will be due within three months from the day of purchase) with strong

liquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of

change.

9.Foreign Currency Transaction

(1) Foreign currency business

Foreign currency transactions of the Company are converted into the amount of bookkeeping base currency

according to the spot rate on the transaction date.On the balance sheet date foreign currency monetary items and foreign currency non-monetary items shall

be treated according to the following provisions: foreign currency monetary items shall be converted at the spot

rate on the balance sheet date. Exchange differences arising from the difference between the spot rate on the

balance sheet date and the spot rate at the time of initial recognition or the previous balance sheet date are

included in the current profits and losses; Foreign currency non-monetary items measured at historical cost are

still converted at the spot rate on the transaction date without changing their bookkeeping base currency amount;

Foreign currency non-monetary items measured at fair value shall be converted at the spot rate on the fair value

determination date and the difference between the converted bookkeeping base currency amount and the original

bookkeeping base currency amount shall be treated as changes in fair value (including exchange rate changes) and

included in the current profits and losses; During the capitalization period the exchange difference between the

principal and interest of foreign currency special loans is capitalized and included in the cost of assets that meet

the capitalization conditions.

(2) Translation of foreign currency financial statements

When converting foreign currency financial statements the Company shall comply with the following

regulations: assets and liabilities in the balance sheet shall be converted at the spot rate on the balance sheet date

and other items of owner's equity except "undistributed profits" shall be converted at the spot rate at the time of

occurrence; The income and expense items in the income statement shall be converted at the spot rate on the

transaction date (or at the exchange rate determined by a systematic and reasonable method and similar to the spot

rate on the transaction date). The translation difference of foreign currency financial statements generated

according to the above translation is recognized as other comprehensive income. The conversion of comparative

financial statements shall be handled according to the above provisions.

10.Financial instruments

The Company recognizes the financial assets or liabilities when involved in financial instruments’

agreements.

（1）Classification recognition and measurement of financial assets

In accordance with the characteristics of business model for managing financial assets and the contractual

cash flow of financial assets the Company classifies financial assets into: financial assets measured in amortized

cost; financial assets measured at fair value and their's changes are included in other comprehensive income;

financial assets measured at fair value and their's changes are included in current profits and losses.The initial measurement of financial assets is calculated by using fair value. For financial assets measured at

fair value whose changes are included in current profits and losses relevant transaction costs are directly included

in current profits and losses; For other types of financial assets relevant transaction costs are included in the

initial recognition amount.

①Financial assets measured at amortized cost

The business model of the Company's management of financial assets measured by amortized cost is aimed

at collecting the contractual cash flow and the contractual cash flow characteristics of such financial assets are

consistent with the basic lending arrangements that is the cash flow generated on a specific date is only the

payment of principal and interest based on the amount of outstanding principal. For such financial assets the

Company adopts the method of real interest rate and makes subsequent measurement according to the cost of

amortization. The profits or losses resulting from amortization or impairment are included in current profits and

losses.

②Financial assets measured at fair value and changes included in other comprehensive income

The Company's business model for managing such financial assets is to collect the contractual cash flow

and the contractual cash flow characteristics of such financial assets are consistent with the basic lending

arrangements. The Company measures such financial assets at fair value and their changes are included in other

comprehensive gains but impairment losses or gains exchange gains and losses and interest income calculated

according to the actual interest rate method are included in current profits and losses.In addition the Company designated some non-trading equity instrument investments as financial assets

measured at fair value with changes included in other comprehensive income. The Company includes the relevant

dividend income of such financial assets in current profits and losses and the changes in fair value in other

comprehensive gains. When the financial asset ceases to be recognized the accumulated gains or losses

previously included in other comprehensive gains shall be transferred into retained income from other

comprehensive income and not be included in current profit and loss.

③Financial assets measured at fair value and changes included in current profits and losses

The Company includes the above-mentioned financial assets measured at amortized cost and those measured

at fair value and their's changes in financial assets other than financial assets of comprehensive income and

classifies them as financial assets measured at fair value and their's changes that are included in current profits and

losses. In addition the Company designates some financial assets as financial assets measured at fair value and

includes their changes in current profits and losses in order to eliminate or significantly reduce accounting

mismatches during initial recognition. In regard with such financial assets the Company adopts fair value for

subsequent measurement and includes changes in fair value into current profits and losses.

（2）Classification recognition and measurement of financial liabilities

The Group’s financial liabilities are on initial recognition classified into financial liabilities at fair value

through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss

relevant transaction costs are immediately recognized in profit or loss for the current period and transaction costs

relating to other financial liabilities are included in the initial recognition amounts.

1 Financial liabilities measured by the fair value and the changes recorded in profit or loss

The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial

recognition to be measured by the fair value follows the same criteria as the classification by which financial

assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and

their changes are recorded in the current profit or loss

Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently

measured according to fair value. Except for hedging accounting changes in fair value are included in current

profits and losses.

Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are

included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in

fair value caused by changes in the Company's own credit risk and when the liabilities are terminated the

changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the

cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The

amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and

losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial

liabilities will result in or expand the accounting mismatch in the profits and losses the Company shall include all

the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit

risk of the enterprise itself) into the current profits and losses.② Other financial liabilities

In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition

or formed by its continuous involvement in the transferred financial asset financial liabilities and financial

guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost

measured at the amortized cost for subsequent measurement recognition has been stopped or amortization of the

profit or loss is included in the current profits and losses.

(3) Recognition basis and measurement methods for transfer of financial assets

Financial assets satisfying one of the following conditions shall be terminated and recognized: ① The

contractual right to collect the cash flow of the financial asset is terminated; ②The financial asset has been

transferred and almost all the risks and rewards in the ownership of the financial asset have been transferred to

the transferee; ③The financial asset has been transferred although the enterprise neither transfers nor retains

almost all the risks and rewards in the ownership of the financial asset but it abandoned control of the financial

assets.In case that the enterprise does not transfer or retain almost all risks and rewards on financial assets

ownership nor waive to control these assets relevant financial assets shall be recognized in accordance with the

degree for continued involvement of financial assets transferred and relevant liabilities shall be recognized

correspondingly. west bank The term "continuous involvement in the transferred financial asset" shall refer to the

risk level that the enterprise faces resulting from the change of the value of the financial asset.If the overall transfer of the financial assets satisfies the derecognition criteria the difference between the

book value of the transferred financial assets and the sum of the consideration received from transfer and

cumulative change in fair value previously recognized in other comprehensive income is accounted into the

current profit or loss.In case that the partial transfer of financial assets meets de-recognition conditions the book value of

financial assets transferred shall be allocated as per respective fair value between de-recognized or not

de-recognized parts and the difference between the sum of the consideration received due to transfer with the

accumulated amount of fair value changes that is previously included in other comprehensive income and shall be

allocated to de-recognized parts and the aforesaid book amount allocated shall be included in the current profit or

loss.The Company shall determine whether almost all the risks and rewards of the ownership of the financial

assets sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. If

almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee the

confirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of the

financial asset have been retained the confirmation of the financial asset shall not be terminated; if neither the

transfer nor the retention of almost all the risks and rewards in the ownership of the financial asset has been made.In case of remuneration it shall continue to determine whether the enterprise has retained control over the assets

and conduct accounting treatment in accordance with the principles described in the preceding paragraphs.

(4) Termination confirmation of financial liabilities

If the current obligation of a financial liability (or part thereof) has been discharged the Company shall

terminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an

agreement with the lender to replace the original financial liabilities by assuming new financial liabilities and the

contract terms of the new financial liabilities are substantially different from those of the original financial

liabilities it shall terminate the recognition of the original financial liabilities and at the same time confirm a new

financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or

part thereof) it shall terminate the confirmation of the original financial liabilities and at the same time confirm a

new financial liabilities in accordance with the revised terms.If the financial liabilities (or part thereof) are terminated the difference between their book value and the

consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits

and losses of the current period.

（5）Offsetting financial assets and financial liabilities

When the Company has a legal right that is currently enforceable to set off the recognized financial assets

and financial liabilities and intends either to settle on a net basis or to realize the financial asset and settle the

financial liability simultaneously a financial asset and a financial liability shall be offset and the net amount is

presented in the balance sheet. Except for the above circumstances financial assets and financial liabilities shall

be presented separately in the balance sheet and shall not be offset.

(6) Method for determining the fair value of financial assets and financial liabilities

Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly

transaction that occurs on the measurement date. The fair value of financial instruments existing in an active

market is determined by the Company according to its quoted price in this market. westbank The quoted prices in

the active market refer to the prices which are easily available from the stock exchanges brokers industry

associations pricing service institutions and etc. at a fixed term and which represent the prices at which actually

occurred market transactions are made under fair conditions.￡¨ In can a financial instrument does not exist in

active markets its fair value shall be determined by the Company with assessment techniques. The value appraisal

techniques mainly include the prices adopted by the parties who are familiar with the condition in the latest

market transaction upon their own free will the current fair value obtained by referring to other financial

instruments of the same essential nature the cash flow capitalization method and the option pricing model etc. In

valuation the Company adopts valuation techniques that are applicable in the current situation and supported by

sufficient data and other information to select input values consistent with the characteristics of assets or liabilities

considered by market participants in the transactions of related assets or liabilities and give priority to the use of

relevant observable input values as far as possible. Unallowable values are used if the relevant observable input

values are not available or are not practicable.

（7）Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after

deducting all of its liabilities. The consideration received from issuing equity instruments net of transaction costs

are added to shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to

holders of equity instruments are deducted from shareholders’ equity.The dividends (including "interest" generated by the tools classified as equity instruments) distributed by the

Company's equity instruments during the period of their existence shall be treated as profit distribution.

11. Impairment of financial instruments

The Company requires to confirm that the financial assets lost by impairment are financial assets measured

by amortized cost investment in debt instruments and lease receivables which are measured at fair value and

whose changes are included in other comprehensive gains mainly including notes receivable accounts receivable

other receivables creditor's rights investment other creditor's rights investment and long-term receivables and etc.In addition provision for impairment and confirmation of credit impairment losses are also made for contract

assets and some financial guarantee contracts in accordance with the accounting policies described in this section.

(1) Method of confirming impairment provision

Based on anticipated credit loss the Company calculates impairment preparation and confirms credit

impairment loss according to the applicable anticipated credit loss measurement method (general method or

simplified method).

Credit loss refers to the difference between the cash flow of all contracts discounted according to the original

real interest rate and the expected cash flow of all contracts receivable according to the contract that is the

present value of all cash shortages. Among them the Company discounts the financial assets purchased or

originated with credit impairment at the actual interest rate adjusted by credit.The general method of measuring anticipated credit loss is whether the credit risk of the Company's

financial assets (including other applicable items such as contract assets similarly hereinafter) has increased

significantly since the initial recognition on each balance sheet day. If the credit risk has increased significantly

since the initial recognition the Company shall measure the loss preparation according to the amount equivalent

to the expected credit loss in the whole duration. If the credit risk has not increased significantly since the initial

recognition the Company shall measure the loss preparation according to the amount equivalent to the expected

credit loss in the next 12 months. The Company shall consider all reasonable and evidenced information

including forward-looking information when evaluating expected credit losses.

Assuming that their credit risk has not increased significantly since the initial recognition the Company may

choose to measure the loss reserve according to the expected credit loss in the next 12 months for financial

instruments with low credit risk on the balance sheet date.

(2) Criteria for judging whether credit risk has increased significantly since the initial recognition

If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly

higher than the probability of default during the estimated duration of the initial recognition the credit risk of the

financial asset is significantly increased. Except for special circumstances the Company uses the change of

default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to

determine whether the credit risk has increased significantly since the initial recognition.

(3) A portfolio-based approach to assessing expected credit risk

The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk such as

the related party's receivables the receivables in dispute with the other party or involving litigation and arbitration

and receivables that has been proved that the debtor may not be able to fulfill the obligation of repayment etc.In addition to the financial assets that assess credit risk individually the Company shall divide financial

assets into different groups based on common risk characteristics and assess credit risk on the basis of portfolio.

(4) Accounting treatment of impairment of financial assets

At the end of the duration the Company shall calculate the anticipated credit losses of various financial

assets. If the anticipated credit losses are greater than the book value of its current impairment provision the

difference is deemed as impairment loss. If the balance is less than the book value of the current impairment

provision the difference is deemed as impairment profit.

(5) Method of determining credit losses of various financial assets

①Receivable Account and Contract assets

In regard to receivables without significant financing components the Company shall measure loss

preparation according to the amount of anticipated credit loss equivalent to the entire duration.In regard to accounts receivable with significant financing components the Company shall choose to

measure loss preparation according to the amount equivalent to the expected credit loss within the duration all the

time.In addition to the accounts receivable that assesses the credit risk individually receivables are divided into

different portfolios based on their credit risk characteristics:

Items Basis for determining combination:

Protfolio 1：Aging protfolio This portfolio is characterized by the aging of receivables as a credit

risk.Portfolio 2 ： Quality Guarantee

portfolio

This portfolio is the contract quality guarantee fund and other funds

For the above portfolio 1 the measurement method of bad debts reserve is the aging analysis method

specifically as follows：

Aging Proportion （%）

Within 1 year（Including 1 year） 0

1-2 years 10

2-3 years 30

3-4 years 50

4-5 years 90

Over 5 years 100

For the guarantee fund portfolio of portfolio 2 no provision for bad debts shall be made unless there is

objective evidence that the money cannot be recovered according to the original terms of accounts receivable and

contract assets.②Other receivable

The Company has measured the impairment loss based on the amount of expected credit losses in the next

12 months or the entire duration based on whether the credit risk of other receivables has increased significantly

since the initial recognition. In addition to the other accounts receivable which assesses the credit risk individually

they are divided into different portfolios based on their credit risk characteristics:

Items Basis for determining combination:

Protfolio 1 This portfolio is a collection of various deposits advances pledges and other

receivables in daily activities.Protfolio 2 This portfolio is a reserve fund borrowed by employees in their daily business

activities.Protfolio 3 Other receivables other than the above portfolio.

Combination of deposit quality assurance fund and deposit and reserve fund combination except for

objective evidence that the Group will not be able to recover the amount according to the original terms of

receivables will not normally be accrued for bad debt reserves. The measurement method of bad debt reserves for

other combinations is aging analysis and the accrual proportion is the same as accounts receivable.

③ Creditor's rights investment

Creditor's rights investment mainly accounts for bond investment measured by amortized cost etc. The

Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months

or the entire duration based on whether the credit risk has increased significantly since the initial recognition. The

Company adopts the method of evaluating credit risk with individual assets for creditor's rights investment.

12.Inventory

1.Investories class:

The company’s stocks can be classified as: raw materials etc.

2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the

weighted averages method or the first-in first-out method.

(3) Measurement of ending inventory

On the balance sheet date inventory shall be measured at the lower of cost and net realizable value. If the

cost of inventory is higher than its net realizable value provision for inventory depreciation shall be accrued and

recorded into the current profits and losses.If the difference between the cost calculated by a single inventory item and its net realizable value is higher

the inventory depreciation reserve shall be accrued and recorded into the current profits and losses. Net realizable

value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred

upon completion estimated sales expenses and related taxes and fees.

4. Physical inventories are managed by the perpetual inventory taking system.

13.Contract assets

The Company lists the customer's unpaid contract consideration for which the Company has fulfilled its

performance obligations according to the contract and which is not the right to collect money from customers

unconditionally (that is only depending on the passage of time) as a contract asset in the balance sheet. Contract

assets and liabilities under the same contract are listed in net amount while contract assets and liabilities under

different contracts are not offset.See Note III. 11 Impairment of Financial Instruments for the determination method and accounting treatment

method of expected credit loss of contract assets.

14. Long-term equity investments

(1) Initial measurement

The Company makes initial measurement of long-term equity investment in the following two situations:

① The initial investment cost of long-term equity investment formed by business combination shall be

determined in accordance with the following provisions:

A. In a business combination under the same control if the combining party pays cash transfers non-cash

assets or assumes debts as the combination consideration the share of the book value of the owner's equity of the

merged party in the consolidated financial statements of the final controlling party shall be taken as the initial

investment cost of long-term equity investment on the combination date. The difference between the initial

investment cost of long-term equity investment and the cash paid the transferred non-cash assets and the book

value of the debts undertaken is adopted to adjust the capital reserve; If the capital reserve is insufficient to offset

the retained earnings shall be adjusted. All directly related expenses incurred for business combination including

audit fees evaluation fees legal service fees etc. are included in the current profits and losses when they occur.

B. In the business combination not under the same control the Company determines the combination cost by

distinguishing the following situations:

a) For business combination realized by one exchange transaction the cost of combination is the fair value of

assets paid liabilities incurred or assumed in order to gain control over the purchased party on the purchase date;

b) For business combination realized step by step through multiple exchange transactions the sum of the

book value of the equity investment of the purchased party held before the purchase date and the new investment

cost on the purchase date shall be taken as the initial investment cost of the investment;

c) Intermediary expenses such as auditing legal services evaluation and consultation and other related

management expenses incurred for business combination are included in the current profits and losses when they

occur;

d) If future events that may affect the combination cost are agreed in the combination contract or agreement

if it is estimated that the future events are likely to occur on the purchase date and the amount of impact on the

combination cost can be reliably measured they will be included in the combination cost.

② Except for the long-term equity investment formed by business combination the initial investment cost

of long-term equity investment obtained by other means shall be determined in accordance with the following

provisions:

A. For the long-term equity investment obtained by cash payment the actual purchase price shall be taken as

the initial investment cost. Initial investment cost includes expenses taxes and other necessary expenditures

directly related to obtaining long-term equity investment.

B. For long-term equity investment obtained through exchange of non-monetary assets the initial investment

cost shall be determined according to Accounting Standards for Business Enterprises No.7-Exchange of

Non-monetary Assets.

C. For long-term equity investment obtained through debt restructuring the initial investment cost shall be

determined according to Accounting Standards for Business Enterprises No.12-Debt Restructuring.③ No matter how the long-term equity investment is obtained when the investment is obtained the cash

dividends or profits included in the paid consideration that have been declared but not yet issued by the investee

are separately accounted as receivable items which does not constitute the initial investment cost of obtaining the

long-term equity investment.

(2) Subsequent measurement

Long-term equity investment that can be controlled by the investee shall be accounted by the cost method in

individual financial statements. Long-term equity investments that have joint control or significant influence on

the investee shall be accounted by equity method.① Long-term equity investment accounted by cost method is priced according to the initial investment cost。

Adjust the cost of long-term equity investment by adding or recovering investment. Cash dividends or profits

declared and distributed by the investee shall be recognized as current investment income.If the initial investment cost of long-term equity investment accounted by equity method is greater than the

fair value share of identifiable net assets of the investee the initial investment cost of long-term equity investment

shall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value share

of the identifiable net assets of the investee at the time of investment the difference shall be included in the

current profits and losses and the cost of long-term equity investment shall be adjusted at the same time.

After obtaining the long-term equity investment the investment income and other comprehensive income

shall be recognized respectively according to the share of the net profit and loss and other comprehensive income

realized by the invested unit and the book value of the long-term equity investment shall be adjusted at the same

time; According to the profit or cash dividend declared and distributed by the investee the book value of

long-term equity investment shall be reduced accordingly; The book value of the long-term equity investment is

adjusted and included in the owner's equity for other changes in the owner's equity of the investee except net

profit and loss other comprehensive income and profit distribution. When recognizing the share of the net profit

and loss of the investee the net profit of the investee is recognized after adjustment based on the fair value of the

identifiable net assets of the investee at the time of obtaining the investment. If the accounting policies and

accounting periods adopted by the investee are inconsistent with those of the Company the financial statements of

the investee shall be adjusted according to the accounting policies and accounting periods of the Company and

the investment income and other comprehensive income shall be recognized accordingly. The net loss incurred by

the investee is recognized to be written down to zero by the book value of long-term equity investment and other

long-term interests that substantially constitute the net investment of the investee unless the Company is obligated

to bear additional losses. If the investee achieves net profit in the future the Company will resume the recognition

of the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharing

amount.When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee the

unrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculated

according to the proportion that should be enjoyed and the part attributable to the Company shall be offset and

the investment income shall be recognized on this basis. Unrealized internal transaction losses between the

Company and the investee are asset impairment losses which shall be fully recognized.

Part of the company's equity investment in affiliated enterprises is indirectly held through venture capital

institutions mutual funds trust companies or similar entities including investment-linked insurance funds.Regardless of whether the above entities have a significant impact on this part of investment the Company

chooses to measure this part of indirect investment at fair value and its change is included in profit or loss in

accordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-Recognition and

Measurement of Financial Instruments and the rest is accounted for by equity method.③ When the Company disposes of long-term equity investment the difference between its book value and

the actual purchase price shall be included in the current profits and losses. For long-term equity investment

accounted by equity method when disposing of the investment it adopts the same basis as the investee's direct

disposal of related assets or liabilities and accounts for the part originally included in other comprehensive

income according to the corresponding proportion.

(3) Basis to determine joint control over and significant influence on the investee

Joint control refers to the common control of an arrangement in accordance with the relevant agreement and

the relevant activities of such arrangement must be unanimously agreed by the participants who share the control

rights before making decisions. Significant influence means that the investor has the right to participate in the

decision-making on the financial and operating policies of the investee but cannot control or jointly control the

formulation of these policies with other parties. When determining whether the investee can be controlled or exert

significant influence the potential voting rights factors such as current convertible bonds and current executable

warrants of the investee held by the Company and other parties shall be considered at the same time.

15.Investment Property

The measurement mode of investment property

The measurement by the cost method

Depreciation or amortization method

Investment property is held to earn rentals or for capital appreciation or for both. Investment property

includes leased or ready to transfer after capital appreciation land use rights and leased buildings.

（1）The measurement mode of investment property

①Depreciation or amortization method

The estimated service life net salvage value rate and annual depreciation (amortization) rate of investment

real estate are listed as follows:

Type Estimated service life

(years)

Estimated net salvage

value rate

Annual depreciation

(amortization) rate

Land use right Remaining useful life

Houses and buildings 20-30 years 3%-10% 3%-4.85%

② Impairment test method and accounting treatment method

See "30. Asset Impairment" for details of impairment test methods and impairment provision accrual

methods of investment real estate.

(2) Conversion of investment real estate

The Company has conclusive evidence that the use of real estate has changed. When converting investment

real estate into self-use real estate or inventory the fair value on the day of conversion is taken as the book value

of self-use real estate and the difference between fair value and original book value is included in current profits

and losses. When self-use real estate or inventory is converted into investment real estate measured by fair value

model the investment real estate is priced according to the fair value on the conversion day. If the fair value on

the conversion day is less than the original book value the difference is included in the current profits and losses;

If the fair value on the conversion date is greater than the original book value the difference shall be included in

other comprehensive income.

16.Fixed assets

（1）Confirmation conditions

The Company's fixed assets refer to tangible assets held for the production of commodities provision of

labor services leasing or operation management which have a service life of more than one year and whose

economic benefits are likely to be included into the Company and whose costs can be reliably measured.The Company's fixed assets include roads and bridges houses and buildings machinery and equipment

electronic equipment transportation tools and other equipment.

（2）Depreciation method

Type

Depreciation

method

Expected useful

life(Year)

Residual rate（%）

Annual depreciation

rate(%)

Guangfo Expressway Working flow basis 28 years 0%

Fokai Expressway-Xiebian to

Sanbao Section

Working flow basis 40 years 0%

Fokai Expressway-Sanbao to

Shuikou Section

Working flow basis 30 years 0%

Jingzhu Expressway Guangzhu

Section

Working flow basis 30 years 0%

House Building The straight-line

method

20-30 years 3%-10% 3%-4.85%

Machine Equipment

The straight-line

method

10 years 3%-10% 9%-9.7%

Electric Equipment

The straight-line

method

5-15 years 3%-10% 6%-19.4%

Transportation Equipment

The straight-line

method

5-8 years 3%-10% 11.25%-19.4%

Other

The straight-line

method

5-15 years 3%-10% 6%-19.4%

Except for the fixed assets that have been fully depreciated and continue to be used the depreciation of fixed

assets is classified and accrued by the life average method and workload method and the depreciation rate is

determined according to the category of fixed assets estimated service life and estimated net salvage value rate.

For the fixed assets formed by special reserve expenditure the special reserve shall be offset according to the

cost to form the fixed assets and the accumulated depreciation of the same amount shall be recognized. The fixed

assets will not be depreciated in future periods.

According to the nature and usage of fixed assets the Company determines the service life and estimated net

salvage value of fixed assets. At the end of the year the service life estimated net salvage value and depreciation

method of fixed assets shall be rechecked and if there is any difference with the original estimate corresponding

adjustments shall be made.

(3) Identification basis valuation and depreciation method of fixed assets leased by financing

When the leased fixed assets have substantially transferred all risks and rewards related to the assets the

Company recognizes that the lease of the fixed assets is a financial lease.

The cost of fixed assets acquired by finance lease shall be determined according to the lower of the fair value

of the leased assets on the lease start date and the present value of the minimum lease payment.The depreciation policy consistent with their own depreciated assets is adopted for fixed assets leased by

financing. If it can be reasonably determined that the ownership of the leased asset is acquired at the expiration of

the lease term depreciation shall be accrued within the serviceable life of the leased asset; If it is impossible to

reasonably determine that the ownership of the leased asset can be acquired at the expiration of the lease term

depreciation shall be accrued within the shorter period of the lease term and the serviceable life of the leased asset.

17.Construction-in process

The construction in progress of the Company refers to the plant equipment and other fixed assets under

construction which are accounted for in detail according to the project and recorded according to the actual cost

including direct construction and installation costs and borrowing costs that meet the capitalization conditions.When the construction in progress reaches the scheduled usable state it will be carried over to fixed assets by

temporary estimation stop interest capitalization and start to accrue depreciation according to the determined

depreciation method of fixed assets. After the project is completed and final accounts are made the original

estimated amount will be adjusted according to the amount of final accounts but the original accrued depreciation

amount will not be adjusted.

18.Borrowing cost

(1) Recognition principle and capitalization period of borrowing cost capitalization

Borrowing costs incurred by the Company can be directly attributed to the purchase construction or

production of assets that meet the capitalization conditions and shall be capitalized when the following conditions

are met at the same time and included in the relevant asset costs:

① Production and expenditure have occurred;

② Borrowing costs have already occurred;

③ The purchase construction or production activities required to make the assets reach the intended usable

or saleable state have started.

Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are

abnormally interrupted in the process of purchase construction or production and the interruption time

continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as

expenses and included in the current profits and losses until the purchase and construction of assets or the

resumption of production activities. If the interruption is a necessary procedure for the purchased built or

produced assets that meet the capitalization conditions to reach the intended usable or saleable state the

capitalization of borrowing costs will continue.

Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased built

or produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as

expenses in the current period.

(2) Calculation method of capitalization amount of borrowing costs

Where a special loan is borrowed for the purpose of purchasing building or producing assets that meet the

capitalization conditions it shall be determined by deducting the interest income obtained by depositing unused

loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the

investment income obtained by temporary investment.If the general loan is occupied for the purpose of purchasing building or producing assets that meet the

capitalization conditions the interest amount of the general loan that should be capitalized shall be calculated and

determined according to the weighted average of the accumulated asset expenditure exceeding the special loan

portion multiplied by the capitalization rate of the occupied general loan. Capitalization rate is calculated and

determined according to the weighted average interest rate of general borrowings.

19.Intangible assets

(1) Pricing method useful life and impairment test

The Company recognizes the identifiable non-monetary assets owned or controlled by the enterprise as

intangible assets which have no physical form and the estimated future economic benefits related to the assets

are likely to flow into the enterprise and the cost of the assets can be reliably measured.The intangible assets of the Company are recorded according to the amount actually paid or the determined

value.

(1) If the purchase price of intangible assets exceeds the normal credit conditions which is of financing

nature in essence the cost of intangible assets is determined based on the present value of the purchase price. The

difference between the actual paid price and the present value of the purchase price shall be included in the current

profits and losses within the credit period except that it should be capitalized according to the regulations.

(2) The intangible assets invested by investors shall be taken as the cost according to the value agreed in the

investment contract or agreement unless the value agreed in the contract or agreement is unfair.

(3) The expenditure of internal research and development projects of the Company is divided into research

stage expenditure and development stage expenditure. Research refers to an original and planned investigation to

acquire and understand new scientific or technical knowledge. Development refers to the application of research

results or other knowledge to a plan or design to produce new or substantially improved materials devices and

products before commercial production or use.

Expenditures during the research phase of internal research and development projects are included in the

current profits and losses when they occur. Expenditures in the development stage of internal research and

development projects that meet the following conditions are recognized as intangible assets: it is technically

feasible to complete the intangible assets so that they can be used or sold; Have the intention to complete the

intangible assets and use or sell them; The ways in which intangible assets generate economic benefits including

those that can prove that there is a market for products produced by using the intangible assets or that the

intangible assets themselves exist in the market and that the intangible assets will be used internally should prove

their usefulness; Have sufficient technical financial and other resources to complete the development of the

intangible assets and have the ability to use or sell the intangible assets; Expenditures attributable to the

development stage of the intangible assets can be measured reliably.Intangible assets with limited service life of the Company shall be amortized on average within the service

life since the intangible assets are available for use. Intangible assets with uncertain service life are not amortized.The amortization amount of intangible assets is the amount after deducting the estimated salvage value from its

cost. For intangible assets for which impairment provision has been made the accumulated amount of impairment

provision for intangible assets has to be deducted.The amortization period of intangible assets with limited service life is as follows:

Type Amortization period

Land use right Remaining useful life

Software 3-5 years

20. Long-term amortizable expenses

Long-term deferred expenses are recorded according to the actual amount incurred and are amortized

equally in installments during the benefit period or within the prescribed period. If the long-term prepaid expense

item cannot benefit the future accounting period the amortized value of the item that has not been amortized will

be transferred to the current profits and losses.

21. Contract liabilities

Contract liabilities refer to the obligation of the Group to transfer goods to customers for the received or

receivable consideration from customers. If the customer has paid the contract consideration or the Group has

obtained the unconditional collection right before the Group transfers the goods to the customer the Group will

list the received or receivable amount as the contract liability at the earlier of the actual payment made by the

customer and the due date for payment. Contract assets and liabilities under the same contract are listed in net

amount while contract assets and liabilities under different contracts are not offset.

22. Employee Benefits

Employee compensation refers to various forms of remuneration or compensation given by the Company for

obtaining services provided by employees or dissolving labor relations. Employee compensation includes

short-term salary post-employment benefits dismissal benefits and other long-term employee benefits. Benefits

provided by the Company to spouses children dependents survivors of deceased employees and other

beneficiaries of employees are also employee compensation.

（1）Accounting methods of short-term benefits

During the accounting period when employees provide services the Company recognizes the actual

short-term salary as a liability which is included in the current profits and losses except that other accounting

standards require or allow it to be included in the cost of assets.

(2) Accounting methods for post-employment benefits

The Company classifies the post-employment benefit plan into defined contribution plan and defined benefit

plans. Post-employment benefit plan refers to the agreement reached between the Company and employees on

post-employment benefits or the rules or measures formulated by the Company to provide post-employment

benefits to employees among which the set deposit plan refers to the post-employment welfare plan in which the

Company no longer undertakes further payment obligations after paying a fixed fee to an independent fund;

Defined benefit plans refers to the post-employment benefit plan except the set-up deposit plan.

(3) Accounting Treatment Method of Demission Welfare

If the Company provides dismissal benefits to employees the employee compensation liabilities arising from

the dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: when

the company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relations

plan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganization

involving the payment of dismissal benefits.

（4）Other long-term employee benefits

If other long-term employee benefits provided by the Company to employees meet the conditions of the set

deposit plan they shall be handled according to the accounting policies of the set deposit plan mentioned above;

Otherwise the net liabilities or net assets of other long-term employee benefits shall be recognized and measured

in accordance with the accounting policies of defined benefit plans mentioned above.

23.Estimated liabilities

(1) Recognition criteria of estimated liabilities

If the obligations related to contingencies stipulated by the Company meet the following conditions at the

same time they are recognized as estimated liabilities:

① The obligations are the current obligations undertaken by the enterprise;

② Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;

③ The amount of the obligations can be measured reliably.

(2) Measurement method of estimated liabilities

Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill

relevant current obligations. There is a continuous range of required expenditure and the possibility of occurrence

of various results in this range is the same and the best estimate is determined according to the intermediate value

in this range. In other cases the best estimates are treated as follows:

① Contingencies involving a single item shall be determined according to the most probable amount.

② Contingencies involving multiple items shall be calculated and determined according to various possible

results and relevant probabilities.When determining the best estimate the risk uncertainty and time value of money related to contingencies

shall be considered comprehensively. If the time value of money has great influence the best estimate is

determined by discounting the related future cash outflow.If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be

compensated by a third party the compensation amount can be recognized as an asset only when it is basically

confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the

estimated liabilities.The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is

conclusive evidence that the book value cannot truly reflect the current best estimate the book value shall be

adjusted according to the current best estimate.

24. Revenues

Accounting policies adopted for income recognition and measurement

Income is the total inflow of economic benefits formed in the daily activities of the Company which will

lead to the increase of shareholders' equity and has nothing to do with the capital invested by shareholders.Revenue is recognized when its amount and related costs can be reliably measured the related economic benefits

are likely to flow into the company and other recognition conditions of the following different types of income

are met at the same time.The Company's main income includes: income from traffic service fees and provision of labor services.

(1) Toll service fee income

The toll income of roads and bridges is determined according to the amount collected and receivable by

vehicles when passing through.

(2) Income from providing labor services

For services started and completed in the same fiscal year income is recognized when the services are

completed. If the beginning and completion of labor services belong to different fiscal years the Company shall

on the balance sheet date recognize the related labor income by the percentage of completion method provided

that the result of the labor service transaction can be reliably estimated. When the following conditions can be

satisfied the results of the transaction can be reliably estimated: ① the total income and total cost of labor

services can be reliably measured; ② the economic benefits related to the transaction can flow into the enterprise;

③ the degree of completion of labor services can be reliably determined.

For services started and completed in the same fiscal year income is recognized when the services are

completed. If the beginning and completion of labor services belong to different fiscal years the Company shall

on the balance sheet date recognize the related labor income by the percentage of completion method provided

that the result of the labor service transaction can be reliably estimated. When the following conditions can be

satisfied the results of the transaction can be reliably estimated: ① the total income and total cost of labor

services can be reliably measured; ② the economic benefits related to the transaction can flow into the

enterprise;

If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably the

following situations shall be dealt with respectively:

① If the labor cost already incurred is expected to be compensated the income from the service shall be

recognized according to the amount of the labor cost already incurred and the labor cost shall be carried over at

the same amount.② If the incurred labor cost is not expected to be compensated the incurred labor cost shall be included in

the profits and losses of the current period and the income from the provision of labor service shall not be

recognized.When the contracts or agreements signed between the Company and other enterprises include selling goods

and providing services if the part for selling goods and the part for providing services can be distinguished and

measured separately the part for selling goods will be treated as goods sales and the part for providing services

will be treated as service provision. Sales of goods and services can not be distinguished or although they can be

distinguished they can not be measured separately. All parts for the selling goods and providing services will be

treated as sales of goods.The adoption of different business models in similar businesses leads to differences in accounting policies for

income recognition

25.Contract cost

If the incremental cost incurred by the Company for obtaining the contract is expected to be recovered it

shall be recognized as an asset as the contract acquisition cost. However if the amortization period of the asset

does not exceed one year it will be included in the current profits and losses when it occurs.If the cost incurred for the performance of the contract does not fall within the scope of other accounting

standards for business enterprises other than Accounting Standards for Business Enterprises No.14-Revenue

(Revised in 2017) and meets the following conditions at the same time it will be recognized as an asset for

contract performance cost: ① The cost is directly related to a current or expected contract including direct labor

direct materials manufacturing expenses (or similar expenses) costs explicitly borne by customers and other

costs incurred only because of the contract; ② This cost increases the resources of the Company for fulfilling its

performance obligations in the future; ③ The cost is expected to be recovered.

Assets related to the contract cost are amortized on the same basis as the recognition of commodity income

related to the assets and are included in the current profits and losses.

26. Government Grants

Government subsidies are recognized when they meet the conditions attached to government subsidies and

can be received.Government subsidies for monetary assets shall be measured according to the amount received or receivable.Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be obtained

reliably it shall be measured according to the nominal amount of 1 yuan.Government subsidies related to assets refer to government subsidies obtained by the Company for

purchasing and building or forming long-term assets in other ways; Otherwise as a government subsidy related to

income.Where the government documents do not specify the object of the subsidy and the subsidy can form

long-term assets the part of the government subsidy corresponding to the value of the assets shall be regarded as

the government subsidy related to the assets and the rest shall be regarded as the government subsidy related to

the income; Where it is difficult to be distinguished government subsidies as a whole are treated as

income-related government subsidies.Government subsidies related to assets offset the book value of related assets or are recognized as deferred

revenue and included in profits and losses by stages according to a reasonable and systematic method within the

service life of related assets. Government subsidies related to income which are used to compensate related costs

or losses that have occurred shall be included in current profits and losses or offset related costs; If they are used

to compensate related costs or losses in later periods they will be included in the deferred revenue and they will

be included in the current profits and losses or offset related costs during the recognition period of related costs or

losses. Government subsidies measured in nominal amount are directly included in current profits and losses. The

Company adopts a consistent approach to the same or similar government subsidy business.

Government subsidies related to daily activities according to the essence of economic business are included

in other income or offset related costs. Government subsidies irrelevant to routine activities shall be included into

the non-operating receipt and disbursement.When the recognized government subsidy needs to be returned if the book value of related assets is offset

during initial recognition the book value of assets will be adjusted; If there is a relevant deferred revenue balance

the book balance of the relevant deferred revenue will be offset and the excess will be included in the current

profits and losses; In other cases it is directly included in the current profits and losses.

For the discount interest of preferential policy loans if the finance allocates the discount interest funds to the

lending bank the actually received loan amount is taken as the recorded value of the loan and the borrowing cost

is calculated according to the loan principal and preferential policy interest rate. If the finance directly allocates

the discount interest funds to the Company the discount interest will offset the borrowing costs.

27.Deferred income tax assets and deferred income tax liabilities

The Company adopts the balance sheet liability method for income tax accounting treatment.

(1) Deferred tax assets

① If there is a deductible temporary difference between the book value of an asset or liability and its tax

basis the deferred income tax assets generated by the deductible temporary difference shall be calculated and

confirmed according to the applicable tax rate during the expected period of recovering the asset or paying off the

liability.② On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be

obtained in the future period to offset the deductible temporary difference the unrecognized deferred income tax

assets in the previous period shall be recognized.③ On the balance sheet date the book value of deferred income tax assets shall be reviewed. If it is unlikely

that enough taxable income will be obtained in the future period to offset the benefits of deferred income tax

assets the book value of deferred income tax assets will be written down. When sufficient taxable income is likely

to be obtained the written-down amount will be reversed.

(2) Deferred income tax liabilities

If there is a taxable temporary difference between the book value of assets and liabilities and their tax basis

the deferred income tax liabilities arising from the taxable temporary difference shall be recognized according to

the applicable tax rate during the expected period of recovering the assets or paying off the liabilities.

28.Lease

(1) Accounting methods for operating leases

As the lessee the Company's operating lease rent is included in the relevant asset cost or current profit and

loss according to the straight-line method in each period of the lease term; The initial direct expenses incurred are

included in the current profits and losses; Contingent rents are included in current profits and losses when they

actually occur.

As the lessor the Company includes the assets used as operating leases in the relevant items in the balance

sheet according to the nature of the assets; For the rent of operating lease it is recognized as the current profit and

loss according to the straight-line method in each period of the lease term; The initial direct expenses incurred are

included in the current profits and losses; For the fixed assets in the operating lease assets the depreciation policy

of similar assets is adopted for depreciation; For other operating lease assets a systematic and reasonable method

is adopted for amortization; Contingent rents are included in current profits and losses when they actually occur.

(2) Accounting methods for financial leasing

① As the lessee

On the start date of the lease term the Company takes the lower of the fair value of the leased assets on the

lease start date and the present value of the minimum lease payment as the recorded value of the leased assets and

the minimum lease payment as the recorded value of the long-term payables with the difference as the

unrecognized financing expenses; Initial direct expenses such as handling fees attorney fees travel expenses

stamp duty etc. which occur during the lease negotiation and signing of the lease contract are included in the

value of the leased assets; Unrecognized financing expenses are allocated in each period of the lease term and the

current financing expenses are calculated and recognized by the effective interest rate method; Contingent rents

are included in current profits and losses when they actually occur.When calculating the present value of the minimum lease payment if the lessor's lease inclusive interest rate

can be obtained the lease inclusive interest rate shall be used as the discount rate; Otherwise the interest rate

stipulated in the lease contract shall be used as the discount rate. If the lessor's lease interest rate cannot be

obtained and the lease contract does not stipulate the interest rate the bank loan interest rate of the same period

shall be used as the discount rate.The Company adopts the depreciation policy consistent with that of the self-owned fixed assets to withdraw

the depreciation of the leased assets. If it can be reasonably determined that the ownership of the leased asset is

acquired at the expiration of the lease term depreciation shall be accrued within the service life of the leased asset.If it is impossible to reasonably determine that the ownership of the leased asset can be acquired at the expiration

of the lease term depreciation shall be accrued within the shorter period of the lease term and the service life of

the leased asset.

② As the lessor

On the start date of the lease term the Company shall take the sum of the minimum lease receipt amount and

the initial direct expenses on the lease start date as the recorded value of the financial lease receivable and records

the unsecured residual value; Recognize the difference between the sum of the minimum lease payment amount

initial direct expenses and unsecured residual value and its present value as unrealized financing income;

Distribute unrealized financing income in each period of the lease term; Calculate and confirm the financing

income of the current period by using the effective interest rate method; And include contingent rents in current

profits and losses when they actually occur.

29. Held-for-sale non-current assets disposal group and termination of operation

(1) Classification and measurement of held-for-sale non-current assets or disposal groups

When the book value is recovered mainly by selling (including the exchange of non-monetary assets with

commercial substance) rather than continuously using a non-current asset or disposal group the non-current asset

or disposal group is classified as held for sale.The above-mentioned non-current assets do not include investment real estate measured by fair value model

biological assets measured by net amount of fair value minus selling expenses assets formed by employee

compensation financial assets deferred income tax assets and rights arising from insurance contracts.The disposal group refers to a group of assets disposed of together by sale or other means in a transaction as

a whole and liabilities directly related to these assets transferred in the transaction. Under certain circumstances

the disposal group includes goodwill obtained in business combination etc.

At the same time non-current assets or disposal groups that meet the following conditions are classified as

held for sale: according to the practice of selling such assets or disposal groups in similar transactions the

non-current assets or disposal groups can be sold immediately under the current situation; The sale is very likely

to happen that is a resolution has been made on a sale plan and a firm purchase commitment has been obtained

and it is expected that the sale will be completed within one year. If the control over subsidiaries is lost due to the

sale of investments in subsidiaries whether or not the Company retains part of the equity investments after the

sale when the investment in subsidiaries to be sold meets the classification conditions of held-for-sale the

investment in subsidiaries will be classified as held-for-sale as a whole in individual financial statements and all

assets and liabilities of subsidiaries will be classified as held-for-sale in consolidated financial statements.When the non-current assets or disposal groups held for sale are initially measured or re-measured on the

balance sheet date the difference between the book value and the net amount after deducting the selling expenses

from the fair value is recognized as the asset impairment loss. For the amount of asset impairment loss recognized

for the held-for-sale disposal group the book value of goodwill in the disposal group is offset first and then the

book value of non-current assets in the disposal group is offset proportionally.If the net amount of non-current assets held for sale or disposal group's fair value minus selling expenses

increases on the subsequent balance sheet date the previously written-down amount will be restored and reversed

within the amount of asset impairment loss recognized after being classified as held-for-sale and the reversed

amount will be included in the current profits and losses. The book value of offset goodwill shall not be reversed.Non-current assets held for sale and assets in disposal group held for sale are not depreciated or amortized;

Interest and other expenses of liabilities in disposal group held for sale continue to be recognized. All or part of

the investments of affiliated enterprises or joint ventures classified as held-for-sale shall be accounted for by the

equity method for those classified as held for sale while those retained (not classified as held-for-sale) shall

continue to be accounted for by the equity method; When the Company loses significant influence on the affiliated

enterprise and joint venture due to the sale it shall stop using the equity method.If a certain non-current asset or disposal group is classified as held for sale but the classification conditions

of held for sale are no longer met the Company will stop classifying it as held for sale and measure it according to

the lower of the following two amounts:

① For the book value of the asset or disposal group before it is classified as held for sale the amount

adjusted according to the depreciation amortization or impairment which should have been recognized without

being classified as held for sale;

② Recoverable amount.

(2) Termination of operation

Termination of operation refers to the components that have been disposed of by the Company or classified

as held for sale by the Company and can be distinguished separately which meet one of the following conditions:

① This component represents an independent main business or a separate main business area.② This component is part of an associated plan to dispose of an independent main business or a separate

main business area.③ This component is a subsidiary acquired for resale.

(3) Presentation

In the balance sheet the Company lists the non-current assets held for sale or the assets in the disposal group

held for sale as "assets held for sale" and lists the liabilities in the disposal group held for sale as "liabilities held

for sale".The Company separately lists the profit and loss from continuing operations and the profit and loss from

termination of operations in the income statement. For non-current assets or disposal groups held for sale that do

not meet the definition of termination of operation the impairment loss reversal amount and disposal profit and

loss are listed as the profit and loss of continuing operations. Operating profit and loss and disposal profit and loss

such as impairment loss and reversal amount of discontinued operation are listed as discontinued operation profit

and loss.

A disposal group that intends to terminate its use instead of selling and meets the conditions of relevant

components in the definition of operation termination shall be listed as operation termination from the date when

it ceases to use.

For the discontinued operations listed in the current period in the current financial statements the

information originally listed as the profit and loss of continuing operations is re-listed as the profit and loss of

discontinued operations in the comparable accounting period. If the termination of operation no longer meets the

classification conditions for held-for-sale the information originally listed as the profit and loss of operation

termination in the current financial statements will be listed again as the profit and loss of continuing operation in

the comparable accounting period.

30. Impairment of assets

The following signs indicate that the assets may be impaired:

(1) The market price of assets fell sharply in the current period which was significantly higher than the

expected decline due to the passage of time or normal use.

(2) The economic technical or legal environment in which the Company operates and the market in which

the assets are located have undergone major changes in the current period or in the near future which will have

adverse effects on the Company.

(3) The market interest rate or other market return on investment has increased in the current period which

affects the discount rate used by enterprises to calculate the present value of the estimated future cash flow of

assets resulting in a significant decrease in the recoverable amount of assets.

(4) There is evidence that the assets are outdated or their entities have been damaged.

(5) Assets have been or will be idle terminated or planned to be disposed of in advance.

(6) The evidence reported by the company shows that the economic performance of assets has been or will

be lower than expected such as the net cash flow created by assets or the realized operating profit (or loss) is far

lower than the expected amount.

(7) Other indications that assets may have been impaired.

On the balance sheet date the Company judges various assets that are applicable to the Accounting Standards

for Business Enterprises No.8-Impairment of Assets such as long-term equity investment fixed assets

engineering materials construction in progress intangible assets (except those with uncertain service life) and

conducts impairment test when there are signs of impairment-estimating their recoverable amount. The

recoverable amount is determined by the higher of the net amount of the fair value of the asset minus the disposal

expenses and the present value of the estimated future cash flow of the asset. If the recoverable amount of an asset

is lower than its book value the book value of the asset shall be written down to the recoverable amount and the

written-down amount shall be recognized as the asset impairment loss which shall be included in the current

profits and losses and the corresponding asset impairment reserve shall be accrued at the same time.If there are signs that an asset may be impaired the Company usually estimates its recoverable amount on the

basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset the recoverable

amount of the asset group is determined based on the asset group to which the asset belongs.

Asset group is the smallest asset portfolio that can be recognized by the Company and its cash inflow is

basically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. The

identification of asset group is based on whether the main cash inflow generated by asset group is independent of

other assets or cash inflow of asset group.The Company conducts impairment test every year for intangible assets with uncertain goodwill and service

life formed by business combination and not yet in serviceable condition regardless of whether there is any sign

of impairment. The impairment test of goodwill is carried out in combination with its related asset group or

combination of asset groups.Once the asset impairment loss is confirmed it will not be reversed in the following accounting period.

31.Change of main accounting policies and estimations

(1)Change of main accounting policies

√ Applicable □ Not applicable

Contents and causes for changes of

accounting policy

Approval procedures Remarks

On July 5 2017 the Ministry of Finance

issued the Accounting Standards for

Business Enterprises No.14-Income

(Revised in 2017) (CK [2017] No.22)

(hereinafter referred to as the "New

Income Standards").It was adopted at the 4th meeting of the

9th Board of Directors of the Company

on April 3 2020

The Company began to implement the

aforementioned new income standards

from January 1 2020

On July 5 2017 the Ministry of Finance issued the Accounting Standards for Business Enterprises

No.14-Income (Revised in 2017) (CK [2017] No.22) (hereinafter referred to as the "New Income Standards").

After the fourth meeting of the ninth board of directors of the company approved the resolution on April 3 2020

the company will implement the aforesaid New Income Standards from January 1 2020.The New Income Standards establish a new income recognition model for regulating the income generated

by contracts with customers. In order to implement the new revenue standard the Company re-evaluated the

recognition measurement accounting and presentation of main contract income. According to the new income

standards only the cumulative impact of unfinished contracts on January 1 2020 are adjusted. The accumulated

impact amount of the first implementation is adjusted. The amount of retained earnings at the beginning of the

first implementation period (i.e. January 1 2020) and other related items in the financial statements will not be

adjusted for the information of comparable periods.Influence of implementing new income standards on financial statements on January 1 2020:

Items December 312019（Before change） January 12020（After change）

Consolidated statements Parent statement Consolidated statements Parent statement

Account receivable 125343724.66 21864051.27 127694377.99 21864051.27

Other account

receivable

26618178.57 13435651.19 19172247.47 13435651.19

Contract assets 5095277.77

Inventories 111683.22 111683.22

Other Non-current

assets

50909325.73 36901029.57 50909325.73 36901029.57

Advance receipts 15605094.69 12817484.06

Contract liabilities 2787610.63

Retained profit 3877431844.64 3710584722.68 3877431844.64 3710584722.68

Surplus reserves 910425068.90 894580785.25 910425068.90 894580785.25

（2）Significant accounting policy changes

√ Applicable □ Not applicable

Contents and causes of changes in accounting estimates Approval procedure

Time point at which

the application begins

Rema

rks

From January 1 2020 the Traffic Volume Forecast and Charge

Revenue Report of Foshan-Kaiping Expressway and the

Traffic Volume Forecast and Charge Revenue Report of

Guangzhu Section of Jiangzhu Expressway issued by

Guangdong Transportation Planning and Design Institute Co.Ltd. in 2019 for the Fokai Branch of Guangdong Expressway

Development Co. Ltd. a branch of the Company and Jingzhu

Expressway Guangzhu Section Co. Ltd. a holding subsidiary

are used as depreciation basis

On December 31 2019 the

third (temporary) meeting

of the ninth board of

directors was held and the

meeting passed the

Proposal on Changes in

Accounting Estimates

January 12020

On December 31 2019 the Company held the 3rd (provisional) meeting of the ninth board of directors

which passed the Proposal on Changes in Accounting Estimates and agreed to adopt the Traffic Volume Forecast

and Charge Revenue Report of Foshan-Kaiping Expressway and the Traffic Volume Forecast and Charge Revenue

Report of Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway issued by Guangdong Transportation

Planning and Design Institute Co. Ltd. in 2019 for the Fokai Branch of Guangdong Expressway Development Co.Ltd. a branch of the Company and Jingzhu Expressway Guangzhu Section Co. Ltd. a holding subsidiary from

January 1 2020. The Company adopts the future applicable method for this item. This change in accounting

estimate results in a decrease of RMB 84060742.83 in depreciation of fixed assets in the current period than the

original accounting estimate a decrease of RMB 84060742.83 in operating cost an increase of RMB

63045557.12 in net profit attributable to the shareholders of the parent company and an increase of RMB

60150595.41 in net profit attributable to the minority shareholders of the parent company.

Contents and causes of changes in

accounting estimates

Approval procedure Time point at which

the application begins

Affected report

items

Impact amount

Forecast traffic volume of expresswayResolution of the board

of directors

January 1 2020 Fixed assets 84060742.83

（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards

Governing Financial Instruments Revenue or Leases from year 2020

Applicable

Whether need to adjust the balance sheet account at the beginning of the year

√ Yes □No

Consolidated balance sheet

In RMB

Items December 312019 January 12020

Amount involved in the

adjustment

Current asset：

Monetary fund 2817920894.50 2817920894.50

Settlement provision

Outgoing call loan

Transactional financial

assets

Derivative financial assets

Notes receivable

Account receivable 125343724.66 127694377.99 2350653.33

Financing of receivables

Prepayments 10894246.41 10894246.41

Insurance receivable

Reinsurance receivable

Provisions of Reinsurance

contracts receivable

Other account receivable 26618178.57 19172247.47 -7445931.10

Including：Interest

receivable

Dividend receivable 7205472.90 7205472.90

Repurchasing of financial

assets

Inventories 111683.22 111683.22

Contract assets 5095277.77 5095277.77

Assets held for sales

Items December 312019 January 12020

Amount involved in the

adjustment

Non-current asset due

within 1 year

51745.32 51745.32

Other current asset

Total of current assets 2980940472.68 2980940472.68

Non-current assets

Loans and payment on

other’s behalf disbursed

Debt investment

Other investment on bonds

Long-term receivable

Long term share equity

investment

3255739898.36 3255739898.36

Other equity instruments

investment

1835822604.77 1835822604.77

Other non-current financial

assets

Property investment 3331500.37 3331500.37

Fixed assets 8925700473.65 8925700473.65

Construction in progress 229098299.48 229098299.48

Production physical assets

Oil & gas assets

Use right assets

Intangible assets 6393895.17 6393895.17

Development expenses

Goodwill

Long-germ expenses to be

amortized

1114764.44 1114764.44

Deferred income tax asset 385494106.13 385494106.13

Other non-current asset 50909325.73 50909325.73

Total of non-current assets 14693604868.10 14693604868.10

Total of assets 17674545340.78 17674545340.78

Current liabilities

Short-term loans

Loan from Central Bank

Borrowing funds

Items December 312019 January 12020

Amount involved in the

adjustment

Transactional financial

liabilities

Derivative financial

liabilities

Notes payable

Account payable 290657734.31 290657734.31

Advance receipts 15605094.69 12817484.06 -2787610.63

Contract liabilities 2787610.63 2787610.63

Selling of repurchased

financial assets

Deposit taking and

interbank deposit

Entrusted trading of

securities

Entrusted selling of

securities

Employees’wage payable 14822524.70 14822524.70

Tax payable 84257586.94 84257586.94

Other account payable 626180586.92 626180586.92

Including：Interest payable

Dividend payable 20020119.31 20020119.31

Fees and commissions

payable

Reinsurance fee payable

Liabilities held for sales

Non-current liability due

within 1 year

795861958.07 795861958.07

Other current liability 189628.17 189628.17

Total of current liability 1827575113.80 1827575113.80

Non-current liabilities：

Reserve fund for insurance

contracts

Long-term loan 4640425000.00 4640425000.00

Bond payable 678124972.89 678124972.89

Items December 312019 January 12020

Amount involved in the

adjustment

Including：preferred stock

Sustainable debt

Lease liability

Long-term payable 39369379.91 39369379.91

Long-term remuneration

payable to staff

Expected liabilities

Deferred income

Deferred income tax

liability

238453976.29 238453976.29

Other non-current

liabilities

Total non-current liabilities 5596373329.09 5596373329.09

Total of liability 7423948442.89 7423948442.89

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stock

Sustainable debt

Capital reserves 2562570465.31 2562570465.31

Less：Shares in stock

Other comprehensive

income

382193344.90 382193344.90

Special reserve

Surplus reserves 910425068.90 910425068.90

Common risk provision

Retained profit 3877431844.64 3877431844.64

Total of owner’s equity

belong to the parent

company

9823426849.75 9823426849.75

Minority shareholders’

equity

427170048.14 427170048.14

Total of owners’ equity 10250596897.89 10250596897.89

Total of liabilities and 17674545340.78 17674545340.78

Items December 312019 January 12020

Amount involved in the

adjustment

owners’ equity

Adjustment statement

Parent Company Balance Sheet

In RMB

Items December 312019 January 12020

Amount involved in the

adjustment

Current asset：

Monetary fund 2791384501.78 2791384501.78

Transactional financial

assets

Derivative financial

assets

Notes receivable

Account receivable 21864051.27 21864051.27

Financing of receivables

Prepayments 1737598.88 1737598.88

Other account receivable 13435651.19 13435651.19

Including：Interest

receivable

Dividend receivable 7205472.90 7205472.90

Inventories

Contract assets

Assets held for sales

Non-current asset due

within 1 year

151637139.08 151637139.08

Other current asset

Total of current assets 2980058942.20 2980058942.20

Non-current assets：

Debt investment 537903684.98 537903684.98

Other investment on

bonds

Long-term receivable

Long term share equity 4789404907.17 4789404907.17

Items December 312019 January 12020

Amount involved in the

adjustment

investment

Other equity instruments

investment

1835822604.77 1835822604.77

Other non-current financial

assets

Property investment 3079362.12 3079362.12

Fixed assets 6818701482.08 6818701482.08

Construction in progress 46952925.08 46952925.08

Production physical assets

Oil & gas assets

Use right assets

Intangible assets 2533878.12 2533878.12

Development expenses

Goodwill

Long-germ expenses to be

amortized

Deferred income tax asset 385296935.33 385296935.33

Other non-current asset 36901029.57 36901029.57

Total of non-current assets 14456596809.22 14456596809.22

Total of assets 17436655751.42 17436655751.42

Current liabilities

Short-term loans

Transactional financial

liabilities

Derivative financial

liabilities

Notes payable

Account payable 129930285.56 129930285.56

Advance receipts

Contract Liabilities

Employees’ wage

payable

6340740.61 6340740.61

Tax payable 8704510.83 8704510.83

Other account payable 582131356.01 582131356.01

Items December 312019 January 12020

Amount involved in the

adjustment

Including：Interest payable

Dividend payable 20020119.31 20020119.31

Liabilities held for sales

Non-current liability due

within 1 year

744589133.72 744589133.72

Other current liability 821133339.57 821133339.57

Total of current liability 2292829366.30 2292829366.30

Non-current liabilities：

Long-term loan 4243730000.00 4243730000.00

Bond payable 678124972.89 678124972.89

Including：preferred stock

Sustainable debt

Lease liability

Long-term payable 39369379.91 39369379.91

Long-term remuneration

payable to staff

Expected liabilities

Deferred income

Deferred income tax

liability

129978356.56 129978356.56

Other non-current

liabilities

Total non-current liabilities 5091202709.36 5091202709.36

Total of liability 7384032075.66 7384032075.66

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stock

Sustainable debt

Capital reserves 2974458696.93 2974458696.93

Less：Shares in stock

Other comprehensive

income

382193344.90 382193344.90

Special reserve

Items December 312019 January 12020

Amount involved in the

adjustment

Surplus reserves 894580785.25 894580785.25

Retained profit 3710584722.68 3710584722.68

Total of owners’ equity 10052623675.76 10052623675.76

Total of liabilities and

owners’ equity

17436655751.42 17436655751.42

Note

（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards

Governing Financial Instruments or Leases from year 2020

□ Applicable √ Not applicable

32. Fair value measurement

Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly

transaction that occurs on the measurement date.The Company measures related assets or liabilities at fair value assuming that the orderly transaction of

selling assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is no

major market the Company assumes that the transaction will be conducted in the most favorable market of related

assets or liabilities. The main market (or the most favorable market) is the trading market that the Company can

enter on the measurement day. The Company adopts the assumptions used by market participants to maximize

their economic benefits when pricing the assets or liabilities.When measuring non-financial assets at fair value the ability of market participants to use the assets for the

best purpose to generate economic benefits or the ability to sell the assets to other market participants for the best

purpose to generate economic benefits shall be considered.The Company adopts the valuation technology which is applicable in the current situation and supported by

sufficient available data and other information and gives priority to the relevant observable input values and only

uses the unobservable input values when the observable input values are unavailable or impractical.

For assets and liabilities measured or disclosed at fair value in financial statements it shall determine the fair

value level according to the lowest level input value which is of great significance to fair value measurement as a

whole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained

on the measurement date in an active market; The second-level input value is directly or indirectly observable

input values of related assets or liabilities except the first-level input value; The third level input value is the

unobservable input value of related assets or liabilities.On each balance sheet date the Company reassesses the assets and liabilities recognized in the financial

statements that are continuously measured at fair value to determine whether there is a conversion between the

fair value measurement levels.VI. Taxation

1. Major category of taxes and tax rates

Tax category Tax basis Tax rate

VAT Taxable income 3%、5%、6%、9%、13%

City maintenance and construction tax The actual payment of turnover tax 7%、5%

Enterprise income tax Taxable income 25%

Education Fee Surcharge The actual payment of turnover tax 3%

Local education surcharge The actual payment of turnover tax 2%

2.Preferential tax

According to the Notice of the Ministry of Finance and the State Administration of Taxation on Fully

Opening the Pilot of Changing Business Tax to VAT (CS [2016] No.36) the qualified contract energy

management services of the subsidiary Guangdong High-speed Technology Investment Co. Ltd. are exempt from

VAT.

VII. Notes to the major items of consolidated financial statement

Unless otherwise specified in the following notes (including the notes to main items in the financial

statements of the parent company) "the beginning of the period" refers to January 1 2020 "the end of the period"

refers to June 30 2020 "current period" refers to January-June 2020 and "last period" refers to January-June

2019.(unless otherwise specified)

1.Monetary Capital

In RMB

Items Amount in year-end Balance Year-beginning

Cash 92943.37 20587.32

Bank deposit 3058886322.31 2817384626.65

Other 517476.78 515680.53

Total 3059496742.46 2817920894.50

Other note

On January 302020The balance of restricted bank deposits at the end of the period was 1221200.00 yuan

which was the land reclamation fund deposited into the fund custody account for the reconstruction and expansion

project of Sanbao to Shuikou section of Fokai Expressway.

2. Account receivable

1.Classification account receivables.

In RMB

Category

Amount in year-end Balance Year-beginning

Book Balance Bad debt provision

Book value

Book Balance Bad debt provision

Book value

Amount Proporti

on(%)

Amount Proportion(

Amount Proport

ion(%)

Amount Proportio

n(%)

Amount

Of which：

Accrual of bad debt provision by

portfolio

135661315.25 100% 1591677.10 1.17% 134069638.15 129049371.28 100% 1354993.29 1.05% 127694377.99

Of which：

Aging portfolio 133863918.46 98.68% 1591677.10 1.19% 132272241.36 126698717.95 98.18% 1354993.29 1.07% 125343724.66

Quality guarantee portfolio 1797396.79 1.32% 1797396.79 2350653.33 1.82% 2350653.33

Total 135661315.25 100% 1591677.10 1.17% 134069638.15 129049371.28 1354993.29 127694377.99

Accrual of bad debt provision by portfolio：Accrual of bad debt provision by aging portfolio

In RMB

Name

Balance in year-end

Receivable accounts Bad debt provision Withdrawal proportion

Within 1 year 124471086.67 0.00%

1-2 years 8465399.40 846539.95 10.00%

2-3 years 75000.00 22500.00 30.00%

3-4 years 123880.00 61940.00 50.00%

4-5 years 678552.39 610697.15 90.00%

Over 5 years 50000.00 50000.00 100.00%

Total 133863918.46 1591677.10 --

Note of the basis of recognizing the portfolio:

Provision for bad debts according to the age portfolio

Accrual of bad debt provision by portfolio: Notes of the basis of Quality guarantee the group

In RMB

Name

Balance in year-end

Receivable accounts Bad debt provision Withdrawal proportion

Quality guarantee 1797396.79

Total 1797396.79 --

Notes of the basis of recognizing the portfolio:

Provision for bad debts according to Quality guarantee portfolio

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of

other receivables if the provision for bad debts of bills receivable is accrued according to the general model of

expected credit loss:

□ Applicable √Not applicable

Disclosure by aging

In RMB

Aging Closing balance

Within 1 year（Including 1 year） 124471086.67

1-2 years 8590178.95

2-3 years 116508.25

Over 3 years 2483541.38

3-4 years 638877.60

4-5 years 1093218.84

Over 5 years 751444.94

Aging Closing balance

Total 135661315.25

(2) Accounts receivable withdraw reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

In RMB

Category

Opening

balance

Amount of change in the current period

Closing

balanceAccrual

Reversed or

collected

amount

Write-off Other

Aging portfolio 1354993.29 236683.81 1591677.10

Total 1354993.29 236683.81 1591677.10

Of which the significant amount of the reversed or collected part during the reporting period :None

（3）The current accounts receivable write-offs situation

None

（4）The ending balance of other receivables owed by the imputation of the top five parties

In RMB

Name Amount Proportion(%) Bad debt provision

Guangdong Union Electronic Services

Co. Ltd.

51964979.29 38.30%

Guangzhou Lingte Electronic Co.Ltd. 19955000.00 14.71%

Guangdong Humen Bridge Co. Ltd. 16318549.64 12.03%

Guangdong Jingzhu Expressway

Guangzhu North Section Co. Ltd.

10324414.00 7.61%

Shandong Boan Intelligent Technology

Co. Ltd

7409966.25 5.46% 740996.63

Total 105972909.18 78.11%

（5）Account receivable which terminate the recognition owning to the transfer of the financial assets

None

(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts

receivable

None

3. Prepayments

（1）Age analysis

In RMB

Age

Balance in year-end Balance Year-beginning

Amount Proportion（%） Amount Proportion（%）

Within 1 year 2902724.33 94.48% 10724508.41 98.44%

Over 3 years 169738.00 5.52% 169738.00 1.56%

Total 3072462.33 -- 10894246.41 --

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:

None

(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target

In RMB

Name Relations with the

Company

Amount Aging Reasons for

non-settlement

Proportion %

China Pacific Property Insurance Co.

Ltd. Guangdong Branch

Non- Related party 838016.00 Within 1

year

Prepaid insurance 27.28

Xingning Hongda Subcontracting

Co. Ltd.

Non- Related party 648970.00 Within 1

year

Outstanding period 21.12

Guangdong Feida Traffic

Engineering Co. Ltd.

Non- Related party 595546.00 Within 1

year

Prepaid Engineering

funds

19.38

China Ping An Property Insurance

Co. Ltd. Guangdong Branch

Non- Related party 300247.50 1 Within 1

year

Prepaid insurance 9.77

Guangzhou ITS Communications

Equipment Co. Ltd.

Non- Related party 226200.00 Within 1

year

Unfinished works

outstanding

7.36

Total / 2608979.50 / / 84.91

4.Other accounts receivable

In RMB

Items Balance in year-end Balance Year-beginning

Dividend receivable 10955472.90 7205472.90

Other receivable 12027702.56 11966774.57

Total 22983175.46 19172247.47

（1）Dividend receivable

1)Dividend receivable

In RMB

Items Balance in year-end Balance Year-beginning

Guangdong Radio and Television Networks investment 1205472.90 1205472.90

Items Balance in year-end Balance Year-beginning

No.1 Limited partnership enterprise

Guangdong Yueke Technology Petty Loan Co. Ltd. 6000000.00

Zhaoqing Yuezhao Higyway Co. Ltd. 9750000.00

Total 10955472.90 7205472.90

2）Significant dividend receivable aged over 1 year

None

3）Bad-debt provision

□Applicable √ Not applicable

（2） Other accounts receivable

1) Other accounts receivable classified by the nature of accounts

In RMB

Nature Closing book balance Opening book balance

Balance of settlement funds for

securities transactions

47528056.18 47528056.18

Cash deposit 2401147.29 3435633.29

Gelin Enze Account 4007679.91 4007679.91

Petty cash 4206145.37 3580634.57

Tran Other safer of long-term assets

receivable

935820.00 935820.00

Other 4513802.08 4043898.89

Total 63592650.83 63531722.84

2）The withdrawal amount of the bad debt provision：

In RMB

Bad Debt Reserves

Stage 1 Stage 2 Stage 3

TotalExpected credit

losses over the next

12 months

Expected credit loss over

life (no credit

impairment)

Expected credit losses for

the entire duration (credit

impairment occurred)

Balance as at January

1 2020

29212.18 51535736.09 51564948.27

Balance as at January

1 2020 in current

—— —— —— ——

Balance as at January

30 2020

29212.18 51535736.09 51564948.27

Of which the significant amount of the reversed or collected part during the reporting period :None

Note 1：The parent company once paid 33683774.79 yuan into Kunlun Securities Co. Ltd Guangdong

Expressway technology investment Co. Ltd once paid 18000000.00 yuan into Kunlun Securities Co. Ltd.

Qinghai Province Xining City’s intermediate people’s court made a adjudication under law declared that Kunlun

Securities Co. Ltd went bankrupt and repaid debt in November 11 2006. On March 2007 The Company and

Guangdong Expressway Technology Investment Co. Ltd had switched the money that paid into Kunlun Securities

Co. Ltd to other account receivable and follow the careful principle to doubtful debts provision. The 710349.92

yuan Credit was Recovered in 2008 The 977527.77 yuan credit was recovered in 2011 The 652012.00 yuan

Credit was recovered in 2014 The 1815828.92 yuan Credit was recovered in 2018 and the provision for had deb

Note 2：Guangdong Expressway Technology investment Co. Ltd .should charge Beijing Gelin Enze Organic

Fertilizer Co. Ltd.for 12220079.91 yuan. Eight millions of it was entrust loan three million was temporary

borrowing 12400.00 yuan is the commission loan interest the rest of it was advance money for another Beijing

Gelin Enze Organic Fertilizer Co. Ltd’s operating status was had and had already ceased producing Accordingly

the controlling subsidiary of the company Guangdong Expressway Investment Co. Ltd. accounted full provision

for Bad debt 12220079.91 yuan provision. The company in 2014 recovered arrears of 8000000.00 yuan rushed

back to the provision for bad debts and write off uncollected interest entrusted loans according to tThe settlement

agreement of 212400.00 yuan.

Changes in significant book balances for loss preparation current period

□ Applicable √ Not applicable

Disclosure by aging

In RMB

Aging Closing balance

Within 1 year（Including 1 year） 6692782.19

1-2 years 1401091.99

2-3 years 446715.70

Over 3 years 55052060.95

3-4 years 1492984.00

4-5 years 503491.88

Over 5 years 53055585.07

Total 63592650.83

3） Accounts receivable withdraw reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

In RMB

Category

Amount of change in the current period

Closing

balanceAccrual

Reversed or

collected

amount

Write-off Other

Accrual of single item 51535736.09 51535736.09

Accrual of

portfolio-Aging

portfolio

29212.18 29212.18

Accrual of

portfolio-Other

portfolio

Total 51564948.27 51564948.27

Where the current bad debts back or recover significant amounts:None

4)The actual write-off other accounts receivable:None

5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party

In RMB

Name Nature

Closing

balance

Aging

Proportion of the total

year end balance of

the accounts

receivable(%)

Closing

balance of bad

debt provision

Kunlun Securities Co.Ltd

Securities

trading

settlement

funds

47528056.18

Over 5

years

74.74% 47528056.18

Beijing Gelin Enze

Current

account

4007679.91

Over 5

years

6.30% 4007679.91

Guangdong Litong Real Estates

Investment Co. Ltd.

Deposit 1505864.00 3-4 years 2.37%

Guangdong Litong Real Estates

Investment Co. Ltd.

Deposit 9213.22 1-2 years 0.01%

Foshan Hezhan Yinghui Property

Management Co. Ltd.

Disposal of

fixed assets

935820.00

Within 1

year

1.47%

Guangdong Guanghui Expressway

Co. Ltd.

Deposit 560000.00

Over 5

years

0.88%

Total -- 54546633.31 -- 85.77% 51535736.09

(6) Accounts receivable involved with government subsidies

None

(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets None

(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts

receivable

None

5. Inventories

Whether the company need to comply with the disclosure requirements of the real estate industry

（1）Category of Inventory

In RMB

Items

Closing book balance Opening book balance

Book balance

Provision for

inventory

impairment

Book value Book balance

Provision for

inventory

impairment

Book value

Raw materials 111683.22 111683.22 111683.22 111683.22

Total 111683.22 111683.22 111683.22 111683.22

(2) Inventory depreciation reserve

None

(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized

None

（4）Description of amortization amount of contract performance cost in the current period

None

6.Contract assets

In RMB

Items

Year-end balance Year-beginning balance

Book

balance

Bad debt

provision

Book value

Book

balance

Bad debt

provision

Book value

Quality guarantee 5246547.77 5246547.77 5095277.77 5095277.77

Total 5246547.77 5246547.77 5095277.77 5095277.77

Amount and reason of material change of book value of contract assets in the current period::None

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of

other receivables if the provision for bad debts of contract assets is accrued according to the general model of

expected credit loss:

Provision for impairment of contract assets in the current period

□ Applicable √Not applicable

None

7.Non-current asset due within 1 year

In RMB

Items

Year-end balance Year-beginning balance

Pre-payment of business tax before

replacing business tax with VAT

51745.32 51745.32

Total 51745.32 51745.32

Important creditor's rights Investment/other creditor's rights investment:

8.Other current assets

I n RMB

Items

Year-end balance Year-beginning balance

Income tax to be deducted 204007.47

Income tax to be certified 106665.85

Total 310673.32

9. Long-term equity investment

In RMB

Investees Opening balance

Increase/decrease

Closing balance

Closing

balance of

impairment

provision

Additional

investment

Adjustment of

other

comprehensiv

e income

Changes of

other equity

Cash bonus or

profits

announced to

issue

Withdra

wal of

impairme

provision

Othe

I. Joint venture

Guangdong

Guanghui

Expressway Co.

Ltd.

1048473573.52 43495261.34 3954180.00 24715954.57 1071207060.29

Subtotal 1048473573.52 43495261.34 3954180.00 24715954.57 1071207060.29

2. Affiliated Company

Guangdong

Jiangzhong

Expressway Co..

Ltd.

179491516.98 -2474550.29 177016966.69

Ganzhou Gankang

Expressway Co.

Ltd.

213672650.90 -18334081.49 195338569.41

Ganzhou Kangda

Expressway Co.

234733526.86 5693920.94 240427447.80

Investees Opening balance

Increase/decrease

Closing balance

Closing

balance of

impairment

provision

Additional

investment

Adjustment of

other

comprehensiv

e income

Changes of

other equity

Cash bonus or

profits

announced to

issue

Withdra

wal of

impairme

provision

Othe

Ltd.Shenzhen Huiyan

Expressway Co.

Ltd.

262682427.44 916998.38 263599425.82

Guoyuan Securities

Co. Ltd.

793926807.52 14629008.65 2533278.11 11940297.90 799148796.38

Guangdong Yueke

Technology Petty

Loan Co. Ltd.

214637335.45 4318117.99 218955453.44

Hunan Lianzhi

Technology Co. Ltd.

80000000.00 80000000.00

Zhaoqing Yuezhao

Highway Co. Ltd.

308122059.69 7608675.97 49750000.00 265980735.66

Subtotal 2207266324.84 80000000.00 12358090.15 2533278.11 61690297.90 2240467395.20

Total 3255739898.36 80000000.00 55853351.49 2533278.11 3954180.00 86406252.47 3311674455.49

Other note

10.Other Equity instrument investment

In RMB

Items Closing balance Opening balance

Guangle Expressway Co. Ltd. 748348301.73 748348301.73

Guangdong Radio and Television Networks investment

No.1 Limited partnership enterprise

50000000.00 50000000.00

China Everbright Bank Co. Ltd. 842212699.52 1037474303.04

Huaxia Securities Co. Ltd.（Notes1）

Huazheng Asset Management Co. Ltd.（Notes2）

Kunlun Securities Co. Ltd.（Notes3）

Total 1640561001.25 1835822604.77

Breakdown disclosure of investment in non-tradable equity instruments in the current period

In RMB

Items

Dividend

income

recognized

Cumulative

gain

Cumulative

loss

Amount of

other

consolidated

income

transferred to

retained

earnings

Reasons for

designation as

measured at fair

value and

changes included

in other

comprehensive

income

Reasons for other

consolidated income

transferred to retained

earnings

Guangle Expressway Co.Ltd.Non-transactional

purpose for

shareholding

Guangdong Radio and

Television Networks

investment No.1 Limited

partnership enterprise

440655.02 7802784.15

Non-transactional

purpose for

shareholding

China Everbright Bank Co.

Ltd.

50344558.02 324651822.72

Non-transactional

purpose for

shareholding

Huaxia Securities Co. Ltd. 5400000.00

Non-transactional

purpose for

shareholding

Huazheng Asset

Management Co. Ltd.

1620000.00

Non-transactional

purpose for

shareholding

Kunlun Securities Co. Ltd. 30000000.00 Non-transactional

purpose for

shareholding

Other note：

Note 1: The owner's equity of Huaxia Securities Co. Ltd. was negative and it entered liquidation procedure in December 2005.The Company made full provision for impairment in respect of this long-term equity investment of RMB 5.4 million.Note 2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co. Ltd. As the June

30 2005 the amount of net assets of Huazheng Asset Management Co. Ltd. in book was 279.132 million yuan and the appraised

value was - 2299.5486 million yuan On October 14 2005 Jianyin CITIC Asset Management Co. Ltd. issued the Letter of

Soliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset Management Co. Ltd. was willing to pay the

price of not more than 42 million yuanto acquire 100% equity of Huazheng Asset Management Co. Ltd. and solicited the

Company's opinions. The Company replied on December 5 2005 abandoning the preemptive right under the same conditions.

The Company made provision of 1.3932 million yuan for impairment in respect of this long-term equity investment of 1.62

million yuan.Note 3.The owner's equity of Kunlun Securities Co. Ltd. was negative and it entered liquidation procedure in October 2005. A

wholly owned subsidiary of Guangdong Expressway Technology Investment Co. Ltd. Will invest Kunlun Securities Co. Ltd.'s

full provision for impairment of 30 million yuan.

11. Investment property

(1) Investment property adopted the cost measurement mode

√ Applicable □Not applicable

In RMB

Items

Houses and

buildings

Land use right

Construction in

progress

Total

I. Original value

1.Opening balance 12664698.25 2971831.10 15636529.35

2.Increased amount of the period

（1）Outsourcing

(2)Inventory Fixed assets and Construction

project into

(3) )Increased of Enterprise consolidation

3.Decreased amount of the period

（1）Disposal

（2）Other Out

4.Closing balance 12664698.25 2971831.10 15636529.35

Items

Houses and

buildings

Land use right

Construction in

progress

Total

II.Accumulated depreciation accumulated

amortization

1.Opening balance 10547091.78 1757937.20 12305028.98

2.Increased amount of the period 73774.56 36784.68 110559.24

(1)Withdrawal or amortization 73774.56 36784.68 110559.24

3.Decreased amount of the period

（1）Disposal

（2）Other Out

4.Closing balance 10620866.34 1794721.88 12415588.22

III. Impairment provision

1.Opening balance

2.Increased amount of the period

（1）Withdrawal

3.Decreased amount of the period

（1）Disposal

（2）Other Out

4.Closing balance

IV. Book value

1.Closing book value 2043831.91 1177109.22 3220941.13

2.Opening book 2117606.47 1213893.90 3331500.37

(2) Investment property adopted fair value measurement mode

□Applicable√ Not applicable

(3) Details of investment property failed to accomplish certification of property

In RMB

Items Book balance Reason

Houses and Building 1366521.30

Transportation and other ancillary

facilities Not accreditation

Other note

12. Fixed assets

In RMB

Items Year-end balance Year-beginning balance

Fixed assets 8709189223.95 8925700473.65

Total 8709189223.95 8925700473.65

(1) List of fixed assets

In RMB

Items

Guangfo

Expressway

Fokai Expressway

Jingzhu

Expressway

Guangzhu

section

House and

buildings

Machinery

equipment

Transportation

equipment

Electricity

equipment and

other

Total

I. Original price

1.Opening balance 1460270190.66 10935058609.66 4816156616.45 362192894.64 260560603.98 48644014.84 658113290.64 18540996220.87

2.Increased amount of the

period

774778.00 165231518.56 166006296.56

（1）Purchase 584179.63 584179.63

（2）Transfer of project under

construction

774778.00 164647338.93 165422116.93

(3)Increased of Enterprise

consolidation

3.Decreased amount of the

period

16205.00 864000.00 3321533.40 4201738.40

（1）Disposal or scrap 16205.00 864000.00 3321533.40 4201738.40

（2）Government subsidy offset

4.Closing balance 1460270190.66 10935058609.66 4816156616.45 362967672.64 260544398.98 47780014.84 820023275.80 18702800779.03

II. Accumulated depreciation

1.Opening balance 1460270190.66 4494205215.58 2841639585.51 252883785.76 84814297.41 39174447.40 435070029.06 9608057551.38

Items

Guangfo

Expressway

Fokai Expressway

Jingzhu

Expressway

Guangzhu

section

House and

buildings

Machinery

equipment

Transportation

equipment

Electricity

equipment and

other

Total

2.Increased amount of the

period

252003690.67 69596901.68 6505633.72 15628796.47 1231400.55 37350892.55 382317315.64

（1）Withdrawal 252003690.67 69596901.68 6505633.72 15628796.47 1231400.55 37350892.55 382317315.64

3.Decreased amount of the

period

15556.80 777600.00 3208350.98 4001507.78

（1）Disposal or scrap 15556.80 777600.00 3208350.98 4001507.78

4.Closing balance 1460270190.66 4746208906.25 2911236487.19 259389419.48 100427537.08 39628247.95 469212570.63 9986373359.24

II. Accumulated depreciation

1.Opening balance 7238195.84 7238195.84

2.Increased amount of the

period

（1）Withdrawal

3.Decreased amount of the period

（1）Disposal or scrap

4.Closing balance 7238195.84 7238195.84

Items

Guangfo

Expressway

Fokai Expressway

Jingzhu

Expressway

Guangzhu

section

House and

buildings

Machinery

equipment

Transportation

equipment

Electricity

equipment and

other

Total

IV. Book value

1.Closing book value 6188849703.41 1904920129.26 103578253.16 160116861.90 8151766.89 343572509.33 8709189223.95

2.Opening book 6440853394.08 1974517030.94 109309108.88 175746306.57 9469567.44 215805065.74 8925700473.65

⑵Temporarily idle fixed assets

None

（3）Details of fixed assets failed to accomplish certification of property

In RMB

Items Book value Reason

Transportation and other ancillary

facilities

86957266.64 Not accreditation

Other note

13. Project under construction

In RMB

Items Year-end balance Year-beginning balance

Project under construction 169594866.22 229098299.48

Total 169594866.22 229098299.48

（1）Project under construction

In RMB

Items

Year-end balance Year-beginning balance

Book balance Provision

for

devaluati

Book value Book balance Prov

ision

for

deva

luati

Book value

Cancellation of Expressway

Provincial Toll Station Project

66534825.51 66534825.51

Reconstruction and Expansion of

Sanbao to Shuikou

20812651.91

20812651.

15943015.38 15943015.38

Bridge deck pavement project of

hailong Bridge

1382928.49

1382928.4

1382928.49 1382928.49

Urban toll station project 9013081.45

9013081.4

9013081.45 9013081.45

Pavement Treatment Project 47513858.97

47513858.

46573355.85 46573355.85

Bridge Deck Treatment Project of

Dayong Viaduct

69200820.99

69200820.

67204790.39 67204790.39

Improvement Project of Drainage

Pipes Across River Reach of Bridge

5933146.00

5933146.0

5933146.00 5933146.00

Items

Year-end balance Year-beginning balance

Book balance Provision

for

devaluati

Book value Book balance Prov

ision

for

deva

luati

Book value

Bridge Drainage Improvement

Project Across Centralized Drinking

Water Sources

7000000.00

7000000.0

7000000.00 7000000.00

Monitoring Hall Migration Project 7167718.98

7167718.9

7167718.98 7167718.98

Odd project 1570659.43

1570659.4

2345437.43 2345437.43

Total 169594866.22

16959486

6.22

229098299.48 229098299.48

(2) Changes of significant construction in progress

In RMB

Name of project Budget

Opening

balance

Increase

Transferred to

fixed assets

Other

decrease

End balance

Proportion

Project

process

Capitalization

interest

Including:

capitalization

interest

this

period

Capitaliza

tion of

interest

rate (%)

Sourc

fundin

Cancellation of

Expressway

Provincial Toll

Station Project

178291911.00 66534825.51 98112513.42 164647338.93 93.59% 100.00% Others

Reconstruction

and Expansion of

Sanbao to

Shuikou

3426210000.00 15943015.38 4869636.53 20812651.91 75.51% 75.51% 72779504.82 Others

Pavement

Treatment Project

186809600.00 46573355.85 940503.12 47513858.97 25.43% 25.43% 1118693.61 940503.12 4.31% Others

Bridge Deck

Treatment Project

of Dayong

Viaduct

122940000.00 67204790.39 1996030.60 69200820.99 56.29% 56.29% 2683619.99 1996030.60 4.31% Others

Total 3914251511.00 196255987.13 105918683.67 164647338.93 137527331.87 -- -- 76581818.42 2936533.72 --

(3)Provision for impairment of construction projects in the current period

None

14. Intangible assets

(1) List of intangible assets

In RMB

Items Land use right Patent right Non-patent right Software Total

I. Original price

1.Opening balance 1311658.00 31328839.81 32640497.81

2.Increased amount of the

period

62517.57 62517.57

(1) Purchase 62517.57 62517.57

(2)Internal Development

(3)Increased of Enterprise

Combination

3.Decreased amount of the

period

（1）Disposal

4.Closing balance 1311658.00 31391357.38 32703015.38

II.Accumulated amortization

1.Opening balance 1311658.00 24934944.64 26246602.64

2.Increased amount of the

period

1062165.61 1062165.61

(1) Withdrawal 1062165.61 1062165.61

3.Decreased amount of the

period

（1）Disposal

Items Land use right Patent right Non-patent right Software Total

4.Closing balance 1311658.00 25997110.25 27308768.25

III. Impairment provision

1.Opening balance

2.Increased amount of the

period

(1) Withdrawal

3.Decreased amount of the

period

（1）Disposal

4.Closing balance

IV. Book value

1.Closing book value 5394247.13 5394247.13

2.Opening book value 6393895.17 6393895.17

The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of

the balance of intangible assets

⑵Details of Land use right failed to accomplish certification of property

None

15. Long-term amortize expenses

In RMB

Items

Balance in

year-begin

Increase in this

period

Amortized

expenses Other loss

Balance in

year-end

Rental fee for

plant

1114764.44 53508.72 1061255.72

Total 1114764.44 53508.72 1061255.72

16. Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets had not been off-set

In RMB

Items Balance in year-end Balance Year-beginning

Deductible temporary

difference

Deferred income tax

assets

Deductible temporary

difference

Deferred income tax

assets

Assets impairment

provisions

7238195.84 1809548.96 7238195.84 1809548.96

Deductible loss 1120134827.88 280033706.98 1054468552.04 263617138.01

Amortization of

intangible assets

16370675.77 4092668.94 100250984.24 25062746.06

Asset valuation

appreciation

346250638.18 86562659.55 380018692.41 95004673.10

Total 1489994337.67 372498584.43 1541976424.53 385494106.13

(2) Deferred income tax liabilities had not been off-set

In RMB

Items

Balance in year-end Balance Year-beginning

Deductible temporary

difference

Deferred income tax

liabilities

Deductible temporary

difference

Deferred income tax

liabilities

Changes in the fair

value of other equity

instruments

324651822.72 81162955.68 519913426.24 129978356.56

Deductible temporary

differences in the

formation of asset

impairment

444929907.64 111232476.91 433902478.92 108475619.73

Total 769581730.36 192395432.59 953815905.16 238453976.29

（3）Details of unrecognized deferred tax assets

In RMB

Items Balance in year-end Balance Year-beginning

Deductible loss 9751378.66 8013102.87

Assets impairment provisions 90176625.37 89939941.56

Cost of outstanding invoices 1941115.68

Total 99928004.03 99894160.11

（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years

In RMB

Year Balance in year-end Balance Year-beginning Remark

2020

2021

2022 1133109.04 1133109.04

2023 3210991.23 3210991.23

2024 3669002.60 3669002.60

2025 1738275.79

Total 9751378.66 8013102.87 --

Other note：

17. Other Non-current assets

In RMB

Items

Balance in year-end Balance Year-beginning

Book balance Provision

for

devaluatio

Book value Book balance Provision

for

devaluatio

Book value

Prepaid fixed assets

engineering fees

34482614.47 34482614.47 50442297.97 50442297.97

Prepaid business tax 492900.42 492900.42 518773.08 518773.08

Less：Part due within 1

year

-51745.32 -51745.32 -51745.32 -51745.32

Total 34923769.57 34923769.57 50909325.73 50909325.73

Other note：

18.Account payable

（1） List of account payable

In RMB

Items Balance in year-end Balance Year-beginning

Within 1 year（Including 1 year） 162774472.04 177823526.35

1-2 years（including2 years） 34995823.93 11710703.48

2-3 years（including 3 years） 8648550.00 2468424.00

Over 3 years 98394394.48 98655080.48

Total 304813240.45 290657734.31

（2）Significant payable aging more than 1 year

In RMB

Items Balance in year-end Reason

Foshan Land and resources Bureau. 30507598.21 Unsettled

Guang Zhongjiang Expressway project

Management Dept

28000000.00 Unsettled

Heshan Land and resources Bureau 27186893.60 Unsettled

Guangdong Highway Construction Co.Ltd.

25630651.00 Unsettled

Guangdong Provincial Freeway Co.Ltd. 8746491.18 Unsettled

Total 120071633.99 --

19. Prepayment received

(1) List of Prepayment received

In RMB

Items Balance in year-end Balance Year-beginning

Within 1 year（Including 1 year） 806015.98 1865984.63

1-2 years（Including 2 years）

2-3 years（Including 3 years）

Over 3 years 10393700.37 10951499.43

Total 11199716.35 12817484.06

(2) Significant advance from customers aging over one year

In RMB

Items Balance in year-end Unpaid/Uncarry over reason

Guangzhou Huanlong Expressway Co.Ltd.

8383879.82

The Rental is not in the settlement

period

Guanghdong Xinle Technology

Development Co. Ltd.

1537523.81

The Rental is not in the settlement

period

Total 9921403.63 --

20. Payable Employee wage

（1）Payable Employee wage

In RMB

Items Year-beginning

balance

Increase in the

current period

Decrease in the

current period

Year-end balance

I. Short-term compensation 14822524.70 128500655.48 124544037.99 18779142.19

II.Post-employment benefits -

defined contribution plans

11175489.25 9764863.47 1410625.78

III. Dismissal benefits 80117.63 80117.63

Total 14822524.70 139756262.36 134389019.09 20189767.97

（2）Short-term Remuneration

In RMB

Items Year-beginning

balance

Increase in the

current period

Decrease in the

current period

Year-end balance

1.Wages bonuses allowances and

subsidies

642463.49 94813014.04 90952413.30 4503064.23

2.Employee welfare 9303364.42 9211545.43 91818.99

3. Social insurance premiums 6471924.55 6468331.84 3592.71

Including ：Medical insurance 3725818.90 3722909.27 2909.63

Work injury insurance 19532.24 19532.24

Maternity insurance 873658.04 872974.96 683.08

Other 1852915.37 1852915.37

4.Public reserves for housing 14000113.00 13989322.00 10791.00

5.Union funds and staff education

fee

12865407.64 3381179.63 3284605.58 12961981.69

8.Other 1314653.57 531059.84 637819.84 1207893.57

Total 14822524.70 128500655.48 124544037.99 18779142.19

（3）Defined contribution plans listed

In RMB

Items

Balance

Year-beginning

Increase in this period Payable in this period Balance in year-end

1. Basic old-age

insurance premiums

2003693.48 2003693.48

2.Unemployment

insurance

56693.56 56693.56

3.Enterprise annuity

payment

9115102.21 7704476.43 1410625.78

Total 11175489.25 9764863.47 1410625.78

Other notes：

21. Tax Payable

In RMB

Items Balance in year-end Balance Year-beginning

VAT 12245948.76 14195480.90

Enterprise Income tax

23310669.09 65145885.17

Individual Income tax 108161.34 2866768.16

City Construction tax 480762.03 957991.34

Education subjoin 234125.43 431482.48

Locality Education subjoin 142025.15 273333.04

Land use tax 606620.40

Property tax 680454.25 17061.15

Stamp tax 44687.72 218722.91

Construction costs for cultural

undertaking

31200.00

Other 119661.79

Total 37853454.17 84257586.94

Other note：

22.Other accounts payable

In RMB

Items Balance in year-end Balance Year-beginning

Dividend payable 954302889.90 20020119.31

Other account payable 471530924.09 606160467.61

Total 1425833813.99 626180586.92

（1）Dividends payable

In RMB

Items Balance in year-end Balance Year-beginning

Common stock dividends 954302889.90 20020119.31

Total 954302889.90 20020119.31

Note: Including significant unpaid dividends payable over one year the unpaid reason shall be disclosed:

Final dividend payable 19998911.82yuan for more than a year in unpaid dividends to shareholders over the year

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.

（2）Other accounts payable

(1) Other accounts payable listed by nature of the account

In RMB

Items Year-end balance Year-Beginning balance

Quality guarantee fund 42938220.28 55789027.50

Borrowing 182161406.25 184505512.50

Provisional estimate of project cost 199761484.19 305588291.39

Other 46669813.37 60277636.22

Total 471530924.09 606160467.61

(2) Other significant accounts payable with aging over one year

In RMB

Items Closing balance Unpaid/un-carry over reason

Yayao to Xiebian extension 12499448.48 Outstanding

CCCC First Harbor Engineering Co.

Ltd.

8339501.22 Project Quality guaranteesconstract liquidated damages

Poly Changda Highway Engineering

Co. Ltd.

4103645.00 Contract liquidated damages project withholding

Guangdong Longda Superhighway

Maintenance Co. Ltd.

3184244.10

Project Quality guarantees contract liquidated damages

Wage margin for migrant workers

China Railway 18 Bureau Group Co.

Ltd.

2501500.00

Contract liquidated damages Wage margin for migrant

workers

Total 30628338.80 --

23.Contract liabilities

（1）Contract liabilities

In RMB

Items Balance year-end Year-beginning balance

Advances on sale 108100.88 2787610.63

Less：Other non-current liabilities

Total 108100.88 2787610.63

24. Non-current liabilities due within 1 year

In RMB

Long-term loans due within 1 year Balance year-end Year-beginning balance

Long-term payable due within 1 year 62060000.00 765445000.00

Interest payable due within 1 year 732075.47 256603.77

Total 96380696.28 30160354.30

Long-term loans due within 1 year 159172771.75 795861958.07

Other note：

25.Other current liabilities

In RMB

Items Balance year-end Year-beginning balance

Tax to be rewritten 1603872.74 189628.17

Total 1603872.74 189628.17

26. Long-term loan

(1) Category of long-term loan

In RMB

Items Balance year-end Year-beginning balance

Pledge loan 507365000.00 447365000.00

Guaranteed loan 375000000.00

Credit loan 4259587500.00 4583505000.00

Long-term loans due within one year -62060000.00 -765445000.00

Total 4704892500.00 4640425000.00

Other notes including interest rate range：

The Pledge loan rate is 4.15%-4.41%; the guaranteed loan interest rate is 5.6%; the credit interest rate is

3.95%-4.41%.

27.Bond payable

（1）Bond payable

In RMB

Items Balance year-end Year-beginning balance

Medium- term note 1426014144.87 678124972.89

Total 1426014144.87 678124972.89

（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability

In RMB

Name of the

bond

Book value Issue date Period Issue amount

Opening

balance

The current

issue

Withdraw

interest at

par

Overflow

discount amount

Pay in

current

period

Closing balance

Guangdong

Expressway

MTN001

680000000.00 2019.2.27 2019.3.1-2024.3.1 680000000.00 678124972.89 -223241.92 678348214.81

Guangdong

Expressway

MTN001

750000000.00 2020.3.13 2020.3.17-2025.3.17 750000000.00 750000000.00 2334069.94 747665930.06

Total -- -- -- 1430000000.00 678124972.89 750000000.00 2110828.02 1426014144.87

(3) Note to conditions and time of share transfer of convertible bonds

None

（4）Other financial instruments that are classified as financial liabilities

None

28. Long-term payable

In RMB

Items Balance year-end Year-beginning balance

Long-term payable 40406172.36 39369379.91

Total 40406172.36 39369379.91

(1) Long-term payable listed by nature of the account

In RMB

Items Balance year-end Year-beginning balance

Non-operating asset payable 2022210.11 2022210.11

Entrust loans 36000000.00 36000000.00

Medium term bill underwriting fee 3116037.72 1603773.57

Less：Part due within 1 year 732075.47 256603.77

Total 40406172.36 39369379.91

Other note：

29. Deferred income

In RMB

Items Opening balance Increase Decrease Closing balance Cause

Government

subsidy

37916900.00 5637075.19 32279824.81

Total 37916900.00 5637075.19 32279824.81 --

Details of government subsidies：

In RMB

Items

Begi

nnin

g of

term

New subsidy

in current

period

Amount

transferred to

non-operational

income

Other income

recorded in

the current

period

Amount of

cost

deducted in

the current

period

Other

chang

End of term

Asset-related or

income-related

Cancellation of

Expressway Provincial

35416900.00 3137075.19 32279824.81 Asset-related

Items

Begi

nnin

g of

term

New subsidy

in current

period

Amount

transferred to

non-operational

income

Other income

recorded in

the current

period

Amount of

cost

deducted in

the current

period

Other

chang

End of term

Asset-related or

income-related

Toll Station Project

Financial discount 2500000.00 2500000.00

Related to

income

30. Stock capital

In RMB

Changed（+，-）

Balance

Year-beginning Issuance of

new share

Bonus

Capitalization

of public

reserve

Other Subtotal

Balance in

year-end

Total of

capital

2090806126.00 2090806126.00

31. Capital reserves

In RMB

Items Year-beginning

balance

Increase in the current

period

Decrease in the current

period

Year-end balance

Share premium 2508408342.99 2508408342.99

Other capital reserves 54162122.32 3954180.00 58116302.32

Total 2562570465.31 3954180.00 2566524645.31

- The situation of change in the current capital reserve is as follows:

The capital reserve in this period was increased 3954180.00 yuan due to the change of the owner's equity of the

joint-stock company

32. Other comprehensive income

In RMB

Items

Year-beginning

balance

Amount of current period

Year-end

balanceAmount incurred

before income tax

Less：Amount

transferred into

profit and loss

in the current

period that

recognied into

other

comprehensive

income in prior

period

Less：Prior period

included in other

composite income

transfer to

retained income in

the current period

Less：Income

tax expenses

After-tax

attribute to the

parent company

After-tax

attribute to

minority

shareholder

1.Other comprehensive income will be

reclassified into income or loss in the future 389935069.68 -195261603.52 -48815400.88 -146446202.64 243488867.04

Including: Share of other comprehensive

income of the investee that cannot be

transferred to profit or loss accounted

for using the equity method

389935069.68 -195261603.52 -48815400.88 -146446202.64 243488867.04

2.Other comprehensive income reclassifiable

to profit or loss in subsequent periods

-7741724.78 2533278.11 2533278.11 -5208446.67

Including：Share of other comprehensive

income of the investee that cannot be

transferred to profit or loss accounted for

using the equity method

-7741724.78 2533278.11 2533278.11 -5208446.67

Total of other comprehensive income 382193344.90 -192728325.41 -48815400.88 -143912924.53 238280420.37

33. Surplus reserve

In RMB

Items Year-beginning

balance

Increase in the current

period

Decrease in the current

period

Year-end balance

Statutory surplus

reserve

910425068.90 910425068.90

Total 910425068.90 910425068.90

Note

34. Retained profits

In RMB

Items Amount of this period Amount of last period

Before adjustments: Retained profits in last

period end

3877431844.64 3938609136.59

Adjust the total undistributed profits at the

beginning of the period

-9749843.30

After adjustments: Retained profits at the period

beginning

3877431844.64 3928859293.29

Add：Net profit belonging to the owner of the

parent company

-5830257.18 1258628101.71

Less: Statutory surplus reserve 135022507.55

Common stock dividend payable 882320185.17 1175033042.81

Retained profit at the end of this term 2989281402.29 3877431844.64

As regards the details of adjusted the beginning undistributed profits

(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations the affected

beginning undistributed profits are RMB 0.00.

(2) As the change of the accounting policy the affected beginning undistributed profits are RMB 0.00.

(3) As the correction of significant accounting error the affected beginning undistributed profits are RMB 0.00 .

(4) As the change of consolidation scope caused by the same control the affected beginning undistributed profits

are RMB 0.00.

(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .

35.Operation income and operation cost

In RMB

Items

Amount of this period Amount of last period

Income Cost Income Cost

Main operation 642155230.52 514556931.18 1465140817.31 536808262.05

Other operation 18743731.27 9618193.88 18532427.90 12815548.44

Total 660898961.79 524175125.06 1483673245.21 549623810.49

36. Business tax and subjoin

In RMB

Items Amount of this period Amount of last period

Urban construction tax 1233837.65 2826207.50

Education surcharge 582429.79 1334286.59

Property tax 712301.65 653603.50

Land use tax 606620.40 607742.40

Vehicle use tax 27905.63 27413.99

Stamp tax 96237.31 151645.56

Business tax 25872.66 25872.66

Locality Education surcharge 388598.88 889523.37

Other 40728.40

Total 3673803.97 6557023.97

Other note

37. Administrative expenses

In RMB

Items Amount of this period Amount of last period

Wage 47810529.06 51876703.42

Depreciation and Amortization 4677507.48 5426970.90

Low consumables amortization 234921.36 270716.05

Travel expenses 83119.53 425060.93

Office expenses 2457800.02 4046634.57

Leased expenses 5183189.17 5621607.68

The fee for hiring agency 3113424.31 4459697.91

Consultation expenses 63000.00 1186300.00

Listing fee 11320.75 11320.75

Information cost and maintenance fee 247597.56 180975.14

Other 4108510.24 3469223.12

Total 67990919.48 76975210.47

Other note：

38.Financial expenses

In RMB

Items Amount of this period Amount of last period

Interest expenses 131774768.90 115040857.71

Deposit interest income（-） -14760756.18 -15761707.69

Exchange Income and loss（Gain-） 1590432.88

Bank commission charge 65706.01 904728.33

Other 1534061.56 1755451.17

Total 118613780.29 103529762.40

39.Other gains

In RMB

Items Amount of this period Amount of last period

Government subsidy- Cancellation of

Expressway Provincial Toll Station

Project

3137075.19

Government subsidy- Stable job

subsidies

398471.22

Return of personal tax handing fee 173223.75 40043.40

Maternity allowance 149747.43 377218.29

Input tax plus deduction 12771.61 2965.93

Total 3871289.20 420227.62

40. Investment income

In RMB

Items Amount of this period Amount of last period

Long-term equity investment income by equity 55853351.49 237712998.09

method

Dividends earned during the holding period on

investments in other equity instrument

50785213.04 38528868.23

Total 106638564.53 276241866.32

41. Credit impairment losses

In RMB

Items Amount of this period Amount of last period

Impairment losses on accounts

receivable

-236683.81

Total -236683.81

Other note：

42.Assets disposal income

In RMB

Source Amount of this period Amount of last period

Non-current assets disposal gains 13129094.29

Including：Income from disposal of

Fixed assets

Income from disposal of Intangible assets 13129094.29

Other 4.37

Total 4.37 13129094.29

43.Non-Operation income

In RMB

Items Amount of this period Amount of last period

Recorded in the amount of

the non-recurring gains and

losses

Charges 1493.01 14676.65 1493.01

Relocation compensation

income

1549865.12 1549865.12

Insurance indemnity income 1824272.37 133339.72 1824272.37

Road property claim income 416820.42 543754.07 416820.42

Other income 285226.03 43589.32 285226.03

Total 4077676.95 735359.76 4077676.95

- Government subsidy reckoned into current gains/losses: None

44. Non-Operation expense

In RMB

Items Amount of current

period

Amount of previous period The amount of non-operating gains &

losses

Loss & abandonment of

non-current assets

184878.43 2591350.52 184878.43

Fine 25472.76 207.98 25472.76

Road property claim

expenses

1411624.28 1633084.45 1411624.28

Other income( 570033.01 6765.00 570033.01

Total 2192008.48 4231407.95 2192008.48

45. Income tax expense

(1) Lists of income tax expense

In RMB

Items Amount of current period Amount of previous period

Current income tax expense 27487772.16 154541370.84

Deferred income tax expense 15752378.88 35155403.21

Total 43240151.04 189696774.05

(2) Adjustment process of accounting profit and income tax expense

In RMB

Items Amount of current period

Total 58604175.75

Current income tax expense accounted by tax and relevant

regulations

14651043.94

Influence of income tax before adjustment 19910.76

Influence of non taxable income -27333746.18

Impact of non-deductible costs expenses and losses 4097052.91

The current period does not affect the deferred tax assets

recognized deductible temporary differences or deductible loss

-744912.67

Other 52550802.28

Income tax expense 43240151.04

46.Items of Cash flow statement

（1）Other cash received from business operation

In RMB

Items Amount of current period Amount of previous period

Interest income 14760756.18 15761707.69

Unit current account 22144584.27 9857010.59

Cancellation of Expressway Provincial Toll Station

Project

35416900.00

Total 72322240.45 25618718.28

（2）Other cash paid related to operating activities

In RMB

Items Amount of current period Amount of previous period

Management expense 15271520.58 16677364.01

Network received toll income 6999980.83

Unit current account 5349446.91 14244441.25

Total 20620967.49 37921786.09

(3)Cash received related to other investment activities

In RMB

Items Amount of current period Amount of previous period

Medium-term bill issuance fee 1122177.00 791384.00

Total 1122177.00 791384.00

47. Supplement Information for cash flow statement

（1）Supplement Information for cash flow statement

In RMB

Supplement Information Amount of current period Amount of previous period

I. Adjusting net profit to cash flow from

operating activities

-- --

Supplement Information Amount of current period Amount of previous period

Net profit 15364024.71 843585803.87

Depreciation of fixed assets oil and gas

assets and consumable biological assets

382391090.20 402575984.69

Amortization of intangible assets 1098950.29 1184929.43

Amortization of Long-term deferred

expenses

53508.72 53508.72

Loss on disposal of fixed assets intangible

assets and other long-term deferred assets

-13129094.29

Fixed assets scrap loss 184878.43 2591350.52

Financial cost 134274768.90 116631290.59

Loss on investment -106638564.53 -276241866.32

Decrease of deferred income tax assets 12995521.70 44118004.31

Increased of deferred income tax liabilities 2756857.18 -8962601.10

Decrease of inventories -29124.58

Decease of operating receivables -37061244.28 -16566898.76

Increased of operating Payable 12249629.21 -45000189.85

Other 236683.81

Net cash flows arising from operating

activities

417906104.34 1050811097.23

II. Significant investment and financing

activities that without cash flows:

-- --

3 ． Movement of cash and cash

equivalents：

-- --

Ending balance of cash 3058275542.46 2036803751.05

Less: Beginning balance of cash

equivalents

2816699694.50 2123303796.32

Net increase of cash and cash equivalents 241575847.96 -86500045.27

（2）Composition of cash and cash equivalents

In RMB

Items Balance in year-end Balance in year-Beginning

Cash

3058275542.46 2816699694.50

Of which: Cash in stock

92943.37 20587.32

Bank savings could be used at any time 3057665122.31 2816163426.65

Other monetary capital could be used at

any time

517476.78 515680.53

Balance of cash and cash equivalents at

the period end

3058275542.46 2816699694.50

Other note：

48. The assets with the ownership or use right restricted

In RMB

Items Book value at the end of the period Restricted reason

Monetary fund 1221200.00

Land reclamation funds in the fund

escrow account

Total 1221200.00 --

Other note：

As of June 30 2020 the Company's subsidiary Jingzhu Expressway Guangzhu Section Co. Ltd borrowed

507365000.00 yuan from Wuyang Sub-branch of Industrial and Commercial Bank of China (including

26335000.00 yuan in non-current liabilities due within one year and 481030000.00 yuan in long-term loans) and

provided a pledge guarantee of 19.2% of the project's toll interest (the right to collect tolls for vehicles traveling

on the Guangzhu section of Jingzhu Expressway and the revenue generated by owning such right).VIII. Changes of merge scope

None

IX. Equity in other entities

1. Equity in subsidiary

(1) The structure of the enterprise group

Name of Subsidiary

Main

Places

Operati

Regis

tratio

Place

Nature of Business

Shareholding Ratio

(%)

Obtaining Method

direct indirect

Guangfo Expressway Co. Ltd. Guangz Guan

Expressway

Management

75.00%

Under the same

control business

hou gzhou combination

Guangdong Expressway Technology

Investment Co. Ltd.Guangz

hou

Guan

gzhou

Investment in

technical industries

and provision of

relevant

100.00% Investment

Guangzhuo Guangzhu Traffic

Investment Management Co. Ltd.Guangz

hou

Guan

gzhou

Investment

management

100.00%

Under the same

control business

combination

Jingzhu Expressway Guangzhu

Section Co.Ltd.Zhongs

han

Guan

gzhou

Expressway

Management

20.00% 55.00%

Under the same

control business

combination

Yuegao Capital

Investment(Hengqin)Co. Ltd.Guangz

hou

Zhuh

Investment

management

100.00% Investment

Notes: holding proportion in subsidiary different from voting proportion:None

Basis of holding half or less voting rights but still been controlled investee and holding more than half of the

voting rights not been controlled investee:None

Significant structure entities and controlling basis in the scope of combination:None

Basis of determine whether the Company is the agent or the principal: None

Other notes：

Guangzhou Guangzhu Traffic Investment Management Co. Ltd. holds 55% equity in Guangzhu Section Co.Ltd. of Jingzhu Expressway.

(2) Important Non-wholly-owned Subsidiary

In RMB

Name of Subsidiary

Shareholding

Ratio of

Minority

Shareholders

(%)

Profit or Loss Owned

by the Minority

Shareholders in the

Current Period

Dividends Distributed

to the Minority

Shareholders in the

Current Period

Equity Balance of the

Minority Shareholders

in the End of the

Period

Guangfo Expressway Co. Ltd. 25.00% 11076201.29 148856273.05

Jingzhu Expressway Guangzhu

Section Co.Ltd.

25.00% 10118080.60 126983792.91 172524264.07

Holding proportion of minority shareholder in subsidiary different from voting proportion

None

(3) The main financial information of significant not wholly owned subsidiary

In RMB

Name

Year-end balance Year-beginning balance

Current

assets

Non- current

assets

Total assets

Current

Liabilities

Non- current

liabilities

Total liabilities

Current

assets

Non- current

assets

Total assets

Current

Liabilities

Non- current

liabilities

Total

liabilities

Guangfo

Expressway

Co. Ltd.

617279005.

61712506.29

678991512.1

78285629.0

5280790.91 83566419.94

560965221.

47173764.91

608138986.4

57018699.4

57018699.42

Jingzhu

Expressway

Guangzhu

Section

Co.Ltd.

120244803.

2212641148.

2332885951.

520668250.

1122120644.

1642788894.9

301043906.

2257506902

.82

2558550808

.94

377916598.

1023074304.

1400990903

.43

In RMB

Name

Amount of current period Amount of previous period

Business

income

Net profit

Total

Comprehensiv

e income

Cash flows

from operating

activities

Business

income

Net profit

Total

Comprehensive

income

Cash flows from

operating

activities

Guangfo Expressway Co. Ltd. 102043817.63 44304805.16 44304805.16 59016009.03 231359875.86 142527223.05 142527223.05 146829390.44

Jingzhu Expressway Guangzhu

Section Co.Ltd.

232123838.11 40472322.41 40472322.41 136327743.66 613528787.18 285871543.23 285871543.23 390248834.50

(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt

None

(5) Provide financial support or other support for structure entities incorporate into the scope of

consolidated financial statements

None

Other note：

2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary

(1) Significant joint venture arrangement or associated enterprise

None

（2）Affect of the transaction on the minority equity and owner's equity attributable to the parent company

None

3. Equity in joint venture arrangement or associated enterprise

(1) Significant joint venture arrangement or associated enterprise

Name

Main

operating

place

Registra

tion

place

Business nature

Proportion Accounting

treatment of the

investment of joint

venture or

associated

enterprise

Directly

Indirectl

Guangdong Guanghui Expressway Co.Ltd.Guangzhou

Guangdong

Guangz

hou

Guangd

ong

Expressway

Management

30.00% Equity method

Zhaoqing Yuezhao Highway Co. Ltd.Zhaoqing

Guangdong

Zhaoqin

Guangd

ong

Expressway

Management

25.00% Equity method

Shenzhen Huiyan Expressway Co. Ltd.Shenzhen

Guangdong

Shenzhe

Guangd

ong

Expressway

Management

33.33% Equity method

Guangdong Jiangzhong Expressway

Co. Ltd.

Zhongshan

Guangdong

Guangz

houGu

angdon

Expressway

Management

15.00% Equity method

Ganzhou kangda Expressway Co. Ltd. Gangzhou Gangzh Expressway 30.00% Equity method

Name

Main

operating

place

Registra

tion

place

Business nature

Proportion Accounting

treatment of the

investment of joint

venture or

associated

enterprise

Directly

Indirectl

Jiangxi ou

Jiangxi

Management

Ganzhou Gankang Expressway Co.Ltd.Gangzhou

Jiangxi

Gangzh

Jiangxi

Expressway

Management

30.00% Equity method

Guangdong Yueke Technology Petty

Loan Co. Ltd.Guangzhou

Guangdong

Guangz

hou

Guangd

ong

Hande all kinds of

small loans

20.00% Equity method

Guangyuan Securities Co. Ltd.Hefei

Anhui

Hefei

Anhui

Security business 2.37% Equity method

Hunan Lianzhi Technology Co. Ltd. Changsha

Changsh

Research and

experimental

development

11.45% Equity method

Notes to holding proportion of joint venture or associated enterprise different from voting proportion:

None

Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting

rights but does not have a significant impact:

Guangdong Jiangzhong Expressway Co. Ltd. Guangyuan Securities Co. Ltd..and Hunan Lianzhi Technology Co.Ltd. holds 20% of the voting rights but has the power to participate in making decisions on their financial and

operating decisions and therefore deemed to be able to exert significant influence over the investee.

(2) Main financial information of significant joint venture

In RMB

Year-end balance/ Amount of current

period

Year-beginning balance/ Amount of

previous period

Guangdong Guanghui Expressway Co.Ltd.Guangdong Guanghui Expressway Co.Ltd.

Current assets 894836795.76 676535557.27

Including：Cash and cash equivalent 434237396.95 236277469.65

Non-current assets 3407727377.88 3551486914.85

Total assets 4302564173.64 4228022472.12

Current liabilities 246407371.86 212427396.61

Non-current liabilities 485466600.82 520683163.79

Total liabilities 731873972.68 733110560.40

Attributable to shareholders of the parent

company

3570690200.96 3494911911.72

Share of net assets calculated by stake 1071207060.29 1048473573.52

Book value of equity investment in joint

ventures

1071207060.29 1048473573.52

Operating income 457060461.67 917898192.73

Financial expenses 4947161.57 10890126.55

Income tax expenses 50887862.70 159573250.38

Net profit 144984204.47 478273173.41

Total comprehensive income 144984204.47 478273173.41

Dividends received from joint ventures

this year

24715954.57 84638655.14

(3) Main financial information of significant associated enterprise

In RMB

Year-end balance/ Amount of current

period

Year-beginning balance/ Amount of

previous period

Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.

Current assets 45654244848.74 57918624287.41

Non-current assets 42446606690.61 26015472537.63

Total assets 88100851539.35 83934096825.04

Current liabilities 47226615144.21 46206352399.19

Non-current Liabilities 15815525400.14 12890023021.47

Total liabilities 63042140544.35 59096375420.66

Minority Shareholders’ Equity 11997171.96 11785075.26

Shareholders’ equity attributable to

shareholders of the parent

25046713823.04 24825936329.12

Pro rata share of the net assets calculated 592422978.36 587200989.50

--Goodwill 206725818.02 206725818.02

The book value of equity investments in

joint ventures

799148796.38 793926807.52

Fair value of equity investment of

associated enterprises with open

quotation

668656682.40 737910410.22

Year-end balance/ Amount of current

period

Year-beginning balance/ Amount of

previous period

Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.

Buinsess incme 2115128481.79 1616521271.21

Net profit 617902373.05 432745658.33

Other comprehensive income 99219704.73 6888669.24

Total comprehensive income 717122077.78 439634327.57

Dividends received from associates

during the year

11940297.90

(4) Summary financial information of insignificant joint venture or associated enterprise

In RMB

Year-end balance/ Amount of current

period

Year-beginning balance/ Amount of

previous period

Joint venture： -- --

Total amount of the pro rata calculation of

the following items

-- --

Associated enterprise： -- --

Total book value of the investment 1441318598.82 1413339517.32

Total amount of the pro rata calculation of

the following ite--Net profit ms

-- --

-2270918.50 84320844.64

--Total comprehensive income -2270918.50 84320844.64

Other note

As the book value of long-term equity investment in joint ventures and joint ventures other than those listed in (2) and (3) in the

current period and in 2018 and 2019 are not higher than 5% of the total owner's equity of the Company attributable to the parent

company. The company considers that except for the important joint ventures and associated enterprises listed in (2) and (3) other

joint ventures and associated enterprises are non important joint ventures and associates Business.

(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the

Company

None

(6) The excess loss of joint venture or associated enterprise

None

(7) The unrecognized commitment related to joint venture investment

None

(8) Contingent liabilities related to joint venture or associated enterprise investment

None

4. Significant common operation

None

5. Equity of structure entity not including in the scope of consolidated financial statements

None

X. Risks Related to Financial Instruments

The company has the main financial instruments such as bank deposits receivables and payables investments

loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these

financial instruments mainly include credit risk market risk and liquidity risk. The company’s management shall

manage and monitor these risks and ensure above risks to be controlled within certain scope.(I)The targets and policies of risk management

The target of risk management is to obtain the proper balance between the risk and benefit to reduce the

negative impact that is caused by the risk of the Company to the lowest level and to maximize the benefits of

shareholders and other equity investors. Based on the targets of risk management the basic strategy of the

Company’s risk management is to identify and analyze the risks which are faced by the Company establish

suitable risk tolerance baseline and proceed the risk management and supervise a variety of risks timely and

reliably and control the risks within a limited range.

1.Market risk

（1）Foreign exchange risk

Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations generally. Our foreign exchange risk is

mainly related to Hong Kong Dollar. Besides annual distribution of B-share shareholder dividends other major

business activities of our Company are settled in RMB. During the reporting period due to the short credit period

of the Company's income and expenditure related to foreign currency it was not affected by foreign exchange

risk.

（2）Interest rate risk

The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainly

related to floating rate bank borrowings (see this Section VII 23). The Company's policy is to maintain the floating

interest rate of these borrowings and at the same time to reasonably reduce the risk of interest rate fluctuation by

shortening the term of a single loan and specifically agreeing on prepayment terms.

（3）Other price risk

The investments held by the Company are classified as financial assets measured at fair value and whose

changes are included in other comprehensive income (financial assets available for sale on or before December 31

2018) and are measured at fair value on the balance sheet date. Therefore the Company bears the risk of changes

in the securities market.

2.Credit risk

On January 30 2020 the largest credit risk exposure that may cause financial losses of the Company mainly

comes from the loss of financial assets of the Company caused by the failure of the other party to perform its

obligations.In order to reduce credit risk the Company only deals with recognized and reputable customers. In addition

the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequate

bad debt provisions are made for unrecoverable amounts. Consequently the Company's management believes that

the Company's credit risk has been greatly reduced.The Group's working capital is deposited in banks with higher credit rating so the credit risk of working

capital is relatively low.

Financial assets overdue or impaired;

(1) Aging analysis of financial assets with overdue impairment: Not existed

(2) Analysis of financial assets that have suffered single impairment: Refer to "4 Other Receivables" in VII

and "10 Investment in Other Equity Instruments" in VII of this section for details.

3.Liquidity risk

When managing liquidity risks the Company maintains sufficient cash and cash equivalents as deemed by

the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow

fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the

loan agreement.XI. The disclosure of the fair value

1. Closing fair value of assets and liabilities calculated by fair value

In RMB

Items

Closing fair value

Fir value

measurement

items at level 1

Fir value

measurement

items at level 2

Fir value

measurement

items at level 3

Total

I. Consistent fair value

measurement

-- -- -- --

（3）Other equity instrument

investment

842212699.52 842212699.52

Total assets continuously measured

at fair value

842212699.52 842212699.52

II. Non –persistent measure -- -- -- --

2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.

As at the end of the period the company holds shares 235254944 shares of China Everbright Bank According to

the closing price of January 30 2020 of 3.58 yuan the final calculation of fair value was 842212699.52 yuan.

3. Fair value of financial assets and liabilities not measured at fair value

At the end of the period the fair value of financial assets and financial liabilities held by the Company that

are not measured at fair value is as follows:

Items Book value Fair values Remark

Balance at Beginning of

the Year

Ending amount Affiliated

hierarchy

Financial assets not measured at fair

value

Other eqiuty instrument investment 798348301.73 798348301.73 798348301.73

XII. Related parties and related-party transactions

1. Parent company information of the enterprise

Name Registered address Nature

Redistricted

capital

The parent

company of the

Company's

shareholding ratio

The parent

company of the

Company’s vote

ratio

Guangdong

communication

Group Co. Ltd

Guangzhou

Equity

management

traffic

infrastructure

construction and

railway project

operation

26.8 billion yuan 24.56% 50.12%

Notes ：

Guangdong Communication Group Co. Ltd. is the largest shareholder of the Company. legal representative: Deng

Xiaohua. Date of establishment: June 23 2000. As of January 30 2020Registered capital: 26.8 billion yuan. It

is a solely state-owned limited company. Business scope：equity management organization of asset reorganization

and optimized allocation raising funds by means including mortgage transfer of property rights and joint stock

system transformation project investment operation and management traffic infrastructure construction highway

and railway project operation and relevant industries technological development application consultation and

services highway and railway passenger and cargo transport ship industry relevant overseas businesses; The

value-added communication business.The finial control of the Company was State owned assets supervision and Administration Commission of

Guangdong Provincial People's Government.

2.Subsidiaries of the Company

Subsidiaries of this enterprise see Note IX(1) the rights of other entity

3. Information on the joint ventures and associated enterprises of the Company

Details refer to the Note IX-3 Interests in joint ventures or associates

Information on other joint venture and associated enterprise of occurring related party transactions with the

Company in reporting period or form balance due to related party transactions in previous period:

Name Relation with the Company

Shenzhen Huiyan Expressway Co. Ltd. Associated enterprises of the Company

Zhaoqing Yuezhao Highway Co. Ltd. Associated enterprises of the Company

Ganzhou Kangda Expressway Co. Ltd. Associated enterprises of the Company

Guangdong Jiangzhong Expressway Co. Ltd. Associated enterprises of the Company

Guangdong Yueke Technology Petty Loan Co. Ltd. Associated enterprises of the Company

Guangdong Guanghui Expressway Co. Ltd. Joint ventures of the Company

4. Other Related parties

Name Relation with the Company

Poly Changda Engineering Co. Ltd.

Controlled by the same parent company and equity

participation unit

Hongkong- Zhuhai-Macao Connection line management center Managed by the parent company

Guangdong Boda Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong East Thinking Management Technology

Development Co. Ltd.

Fully owned subsidiary of the parent company

Guangdong Feida Traffic Engineering Co. ltd. Fully owned subsidiary of the parent company

Guangdong Gaoda Property Development Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Expressway Media Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Guangle Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Guangzhu West Line Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Humen Bridge Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Hualu Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Traffic Industry Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Jingzhu Expressway Guangzhu North Section Co.Ltd.

Controlled by the same parent company and equity

participation unit

Guangdong Kaiyang Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Litong Technology Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Real Estate Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Union Electron Service Co. ltd. Fully owned subsidiary of the parent company

Guangdong Lulutong Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Maozhan Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Shanfen Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Shenshan Expressway East Section Co. Ltd.

Controlled by the same parent company and equity

participation unit

Guangdong Provincial Freeway Co.Ltd. Fully owned subsidiary of the parent company

Name Relation with the Company

Guangdong Highway Construction Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Communication Planning & Design Institute Co.Ltd.

Fully owned subsidiary of the parent company

Guangdong Traffic Development Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Read & Bridge Construction Development Co.Ltd.

Fully owned subsidiary of the parent company

Guangdong Tongyi Expressway Service Area Co. Ltd.公司 Fully owned subsidiary of the parent company

Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Yuedong Expressway Industry Development Co.Ltd.

Fully owned subsidiary of the parent company

Guangdong Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company

Guangshenzhu Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangzhongjiang Expressway Project Management Dept Fully owned subsidiary of the parent company

Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company

Jiangmen Jianghe Expressway Co. Ltd.

Controlled by the same parent company and equity

participation unit

Xinyue Co. Ltd. Fully owned subsidiary of the parent company

Yunfo Guangyun Expressway Co. Ltd. Fully owned subsidiary of the parent company

5. List of related-party transactions

(1)Information on acquisition of goods and reception of labor service

Acquisition of goods and reception of labor service

In RMB

Related parties

Content of related

transaction

Amount of

current period

Amount

period

Over the

trading

limit or

not?

Amount of last

period

Guangdong Union electronic services

co. Ltd.Service 3066900.10 3767825.78

Guangdong Feida Traffic

Engineering Co. Ltd.

Electrical and

mechanical

maintenance

494467.97

Related parties

Content of related

transaction

Amount of

current period

Amount

period

Over the

trading

limit or

not?

Amount of last

period

Guangdong Humen Bridge Co. Ltd. Elecctric charge 20981.64

Guangdong Guanghui Expressway

Co. Ltd.

Advertising Electricity 3937.74

Guangdong Lulutong Co. Ltd. Maintenance charges 715406.99

Guangdong Tongyi Expressway

Service Area Co. Ltd

Service 103076.37

Guangdong Expressway Media Co.Ltd.

Electric charge 6431.59

Poly Changda Engineering Co. Ltd. Service charge 2440.62

Guangdong Guanghui Expressway

Co. Ltd.

Interest 3029231.25 2014593.75

Guangdong Jiangzhong Expressway

Co. Ltd.

Interest 712530.00 708615.00

Guangdong East Thinking

Management Technology

Development Co. Ltd.

Service 60000.00 60000.00

Guangdong Union electronic services

co. Ltd.

OA system

maintenance

17094.71

Poly Changda Engineering Co. Ltd. Purchase assets 47564260.01 183277074.35

Guangdong Xinyue traffic

Investment Co. Ltd.Purchase assets 1908423.62 6688119.43

uangdong Hualu Traffic Technology

Co. Ltd.

Purchase assets 459346.00

Related transactions on sale goods and receiving services

In RMB

Related party Content Amount of current period Amount of previous

period

Jingzhu Expressway Guangzhu North

section Co. Ltd.

Commission

management fee

9734292.46 9516226.40

Guangdong Provincial Freeway Co.Ltd. Project fund 1773900.00 2052036.80

Guangdong Union electronic services co. Promotion fees 1525613.18

Related party Content Amount of current period Amount of previous

period

Ltd.Guangdong Guanghui Expressway Co. Ltd.Revenue from heavy

maintenance services

522123.89

Guangdong Tongyi Expressway Service Area

Co. Ltd

water and electricity 427637.49

Guangdong Feida Traffic Engineering Co.Ltd

CPC card sales

revenue

138053.09

Poly Changda Engineering Co. Ltd. water and electricity 16894.60

Guangdong Xinyue traffic Investment Co.Ltd.Purchase assets 15840.71 32212.39

Guangzhenzhu Expressway Co. Ltd. Project fund 8407.08 114655.17

Guangdong Highway Construction Co. ltd. Project fund 603570.34

Guangdong Road & Bridge Construction

Development Co. Ltd.

Project fund 120550.07

Guangdong Boda Expressway Co. Ltd. Project fund 107547.17

Guangdong Kaiyang Expressway Co. Ltd. Project fund 89142.85

Yunfo Guangyun Expressway Co. Ltd. Project fund 69535.81

Guangdong Traffic Industry Investment Co.Ltd.Project fund 59433.96

Guangdong Humen Bridge Co. Ltd. Project fund 29716.98

Zhaoqing Yuezhao Highway Co. Ltd. Project fund 123113.21

Guangdong Jiangzhong Expressway Co.Ltd.Project fund 169001.14

Shenzhen Huiyan Expressway Co. Ltd. Project fund 663319.81

(2) Information of related lease

The Company was lessor：

In RMB

Name of lessee Category of lease assets

The lease income confirmed

in this year

The lease income confirmed

in last year

Guangdong Litong

Technology Investment Co.Ltd.Land lease 37690.80

Guangdong Expressway

Media Co. Ltd.

Advertising lease

12905.92 195542.86

Total 50596.72 195542.86

- The company was lessee：

In RMB

Lessor Category of leased assets

The lease income confirmed

in this year

Category of leased assets

Guangdong Litong Real

Eatate Investment Co. Ltd

Office space

4450575.83 4469957.38

Zhaoqing Yuezhao Highway

Co. Ltd.

Advertising column lease 124031.00

Guangzhou Yueyun Traffic

Co. Ltd.

Car rental fee 59601.00 42400.00

Guangdong Gaoda Property

Development Co. Ltd.

Office space

49582.73 52686.57

Total 4683790.56 4565043.95

Note

(3) Inter-bank lending of capital of related parties

In RMB

Related party

Amount

borrowed and

loaned

Initial date Due date Notes

Borrowed

Guangdong Guanghui

Expressway Co. Ltd.

30000000.00 April 22019 April 12020

Guangdong Guanghui

Expressway Co. Ltd.

105000000.00 April 12019 March 312020

Guangdong Guanghui

Expressway Co. Ltd.

45000000.00 September 252019 September 242020

Guangdong Guanghui

Expressway Co. Ltd.

105000000.00 May 132020 May 122021

Guangdong Guanghui

Expressway Co. Ltd.

30000000.00 April 212020 April 202021

Guangdong Jiangzhong

Expressway Co Loaned. Ltd.

36000000.00 November 142018 November 132023

Loaned

(4) Rewards for the key management personnel

In RMB

Items

Amount of current period Amount of previous period

Rewards for the key management

personnel

218.30 241.78

(5) Other related-party transactions

-Capital Deposit Situation of Guangdong Provincial Communication Group Finance Co. Ltd.

In RMB

Items

Amount of current period Amount of previous period

Balance of Deposit

680793735.15 189879309.18

Interest Income

3962970.38 6226669.02

Pricing Principle

Reference to the deposit rate of the people's Bank of China for the same period

On December 25 2017 and December 22 2017 the Company signed the Cash Management Business

Cooperation Agreement with Guangdong Communications Group Finance Co. Ltd. and Industrial and

Commercial Bank of China Guangdong Branch and signed the Cash Management Business Cooperation

Agreement with Guangdong Communications Group Finance Co. Ltd. and China Construction Bank Corporation.

Guangdong Branch respectively to join in the cash pool of Guangdong Communications Group Finance Co. Ltd.-On June 15 2016The company’ s 29th meeting (Provisional) of the seventh board of directors was

convened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project of

Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting agreed

that Guangdong Provincial Fokai Expressway Co. Ltd entrusts Guangdong Provincial Highway Construction Co.Ltd with the construction management of the renovation and expansion project of Sanbao-to-Shuikou Section of

Shengyang-to-Haikou National Expressway and handling the related matters of the entrustment of the

construction management.

6. Receivables and payables of related parties

（1）Receivables

In RMB

Name Related party

Amount at year end Amount at year beginning

Balance of

Book

Bad debt

Provision

Balance of

Book

Bad debt

Provision

Contract assets

Guangdong Xinyue Traffic Investment

Co. Ltd.

127567.50 127567.50

Contract assets

Guangdong Road & Bridge Construction

Development Co. ltd.

83391.05 83391.05

Contract assets Guangdong Guanghui Expressway Co. 48880.00 48880.00

Name Related party

Amount at year end Amount at year beginning

Balance of

Book

Bad debt

Provision

Balance of

Book

Bad debt

Provision

Ltd.

Contract assets

Guangdong Feida Traffic Engineering

Co.Ltd.

48230.00 48230.00

Contract assets Zhaoqing Yuezhao Highway Co. Ltd. 41442.48 41442.48

Contract assets Guangdong Provincial Freeway Co.Ltd. 21232.00 41377.00

Contract assets

Guangdong Guangzhu West Line

Expressway Co. Ltd.

18781.60 18781.60

Contract assets Guangshenzhu Expressway Co. Ltd. 9096.00 9096.00

Contract assets

Guangdong Jiangzhong Expressway Co.Ltd.

8412.00 8412.00

Contract assets

Guangdong Highway Construction Co.Ltd.

7200.00 7200.00

Contract assets Guangdong Boda Expressway Co. Ltd. 4531.00 4531.00

Contract assets Guangdong Humen Bridge Co. Ltd. 2700.00 2700.00

Contract assets

Guangdong Shenshan Expressway East

Section Co. Ltd.

12000.00

Contract assets

Guangdong Litong Technology

Investment Co. ltd.

5273.00

Account

receivable

Guangdong Union electron Service Co.Ltd.

51964979.29 57172014.20

Account

receivable

Guangdong Humen Bridge Co. Ltd. 16318549.64 16698073.73

Account

receivable

Jingzhu Expressway Guangzhu North

Section Co. Ltd.

10324414.00 6174264.00 4450.00

Account

receivable

Guangdong Provincial Freeway Co.Ltd. 1834743.30 175248.90

Account

receivable

Guangdong Guanghui Expressway Co.Ltd.

1490227.95 2112.57 1355473.55 2112.57

Account

receivable

Guangdong Feida Traffic Engineering

Co. Ltd.

1166085.25 115108.90 1423875.25 103072.45

Account

receivable

Guangdong Xinyue Traffic Investment

Co. ltd.

680652.70 220555.94 2334682.70 160715.94

Account

receivable

Guangdong Road & Bridge Construction

Development Co. Ltd.

567957.47 567957.47

Name Related party

Amount at year end Amount at year beginning

Balance of

Book

Bad debt

Provision

Balance of

Book

Bad debt

Provision

Account

receivable

Guangdong Boda Expressway Co. Ltd. 537848.00 463491.88

Account

receivable

Guangdong Highway Construction Co.Ltd.

287020.85 166960.46 336946.45 3818.00

Account

receivable

Guangzhenzhu Expressway Co. Ltd. 79236.00 950.00 115278.40

Account

receivable

Guangdong Guangzhu West Line

Expressway Co. Ltd.

65946.00 65946.00 384226.00

Account

receivable

Guangdong Jiangzhong Expressway Co.Ltd.

19708.00 19708.00

Account

receivable

Guangdong Shenshan Expressway Co.Ltd.

12000.00

Account

receivable

Guangdong Yuedong Expressway

Industry Development Co. Ltd.

7367.20 736.72 7367.20

Account

receivable

Guangdong Guangle Expressway Co.Ltd.

7248.00 7248.00

Account

receivable

Guangdong Yueyun Traffic Co. Ltd. 3032.00 3032.00

Account

receivable

Guangdong Expressway Media Co. Ltd. 1909300.00

Account

receivable

Guangdong Litong Technology Co. ltd. 68542.00

Account

receivable

Guangdong Maozhan Expressway Co.Ltd.

8747.20

Account

receivable

Guangdong Shanfen Expressway Co.Ltd.

8028.80

Account

receivable

Jiangmen Jianghe Expressway Co.Ltd. 2539.20

Advanced

payment

Guangdong Feida Traffic Engineering

Co. Ltd.

595546.00

Advanced

payment

Zhaoqing Yuezhao Highway Co. Ltd. 20672.00 144703.00

Advanced

payment

Guangdong Litong Real Estate

Investment Co. Ltd.

735092.38

Dividend Zhaoqing Yuezhao Highway Co. Ltd. 9750000.00

Name Related party

Amount at year end Amount at year beginning

Balance of

Book

Bad debt

Provision

Balance of

Book

Bad debt

Provision

Receivable

Dividend

Receivable

Guangdong Yueke Technology Petty

Loan Co. Ltd.

6000000.00

Other Account

receivable

Guangdong Litong Real Estate

Investment Co. Ltd.

1515077.22 1515077.22

Other Account

receivable

Guangdong Guanghui Expressway Co.Ltd.

560000.00 560000.00

Other Account

receivable

Guangdong Provincial Freeway Co.Ltd. 463491.88 566447.18

Other Account

receivable

Zhaoqing Yuezhao Highway Co. Ltd. 390000.00 390000.00

Other Account

receivable

Guangdong Expressway Media Co. Ltd. 120655.99 896321.01

Other Account

receivable

Guangdong Tongyi Expressway Service

Area Co. Ltd.

94029.95

Other Account

receivable

Gaungshenzhu Expressway Co. Ltd. 60640.00 60640.00

Other Account

receivable

Guangdong Gaoda Property

Development Co. ltd.

29462.00 15906.00

Other Account

receivable

Guangdong Boda Expressway Co. Ltd. 22740.00 22740.00

Other Account

receivable

Guangdong Gufangzhu West Line

Expressway Co. Ltd.

20000.00 20000.00

Other Account

receivable

Poly Changda Engineering Co. Ltd. 8346.18

Other Account

receivable

Hongkong Zhuhai Macao Bridge

Connection line management center

3000.00 3000.00

Other Non-Current

Assets

Poly Changda Engineering Co. Ltd. 34218249.49 48400293.16

Other Non-Current

Assets

Guangdong Hualu Traffic Technology

Co. Ltd.

277117.00

Long-term

amortization costs

Guangdong Jingzhu Expressway

Guangzhu North Section Co. Ltd.

1061255.72 1114764.44

（2）Payables

In RMB

Name Related party Amount at year end

Amount at year

beginning

Account payable

Guangzhongjiang Expressway Project

Management Dept

28000000.00 28000000.00

Account payable Guangdong Highway Construction Co. Ltd. 25630651.00 25630651.00

Account payable Guangdong Provincial Freeway Co.Ltd. 8746491.18 8746491.18

Account payable

Guangdong Feida Traffic Engineering Co.Ltd.

5054211.99 7588881.23

Account payable

Guangdong Litong Technology Investment

Co. Ltd.

2663010.00 2663010.00

Account payable

Guangdong Litong Real Estate Investment

Co. Ltd.

1481776.94

Account payable

Guangdong Xinyue Traffic Investment Co.Ltd.

1237761.42 1237761.42

Account payable Guangdong Union Electron Service Co.Ltd. 859831.41

Account payable Guangdong Guanghui Expressway Co. Ltd. 727200.00 742051.92

Account payable Poly Changda Engineering Co. Ltd. 16685096.00

Account payable Guangdong Lulutong Co. ltd. 852623.59

Account payable

Guangdong Hualu Traffic Technology Co.Ltd.

276371.00

Other Payable account Guangdong Guanghui Expressway Co. Ltd. 182161406.25 184505512.50

Other Payable account Poly Changda Engineering Co. Ltd. 4665296.00 19879471.19

Other Payable account Guangdong Union Electron Service Co.Ltd. 3071938.39 367300.00

Other Payable account

Guangdong Feida Traffic Engineering Co.Ltd.

1758080.11 2092641.20

Other Payable account

Guangdong Hualu Traffic Technology Co.Ltd.

1156567.00 1077965.88

Other Payable account

Guangdong Xinyue Traffic Investment Co.Ltd.

986279.22 1331893.22

Other Payable account

Guangdong East Thinking Management

Technology Development Co. Ltd.

439523.40 416398.40

Other Payable account

Guangdong Litong Technology Investment

Co. Ltd.

247070.50 247070.50

Other Payable account Guangzhongjiang Expressway Project 200000.00 200000.00

Name Related party Amount at year end

Amount at year

beginning

Management Dept

Other Payable account

Guangdong Tongyi Expressway Service Area

Co. Ltd.

120000.00 120000.00

Other Payable account

Guangdong Communication Planning &

Design Institute Co. Ltd.

158049.70 158049.70

Other Payable account

Guangzhou Xinyue Traffic Technology Co.Ltd.

101323.00 101323.00

Other Payable account Guangdong Expressway Media Co. Ltd. 70000.00 70000.00

Other Payable account Ganzhou Kangda Expressway Co. Ltd. 72121.23

Other Payable account

Guangdong Litong Real Estate Investment

Co. Ltd.

28429.38

Other Payable account Guangdong Lulutong Co. Ltd. 10912.41 10912.41

Dividend payable Guangdong Communication Group Co. Ltd. 216663424.84

Dividend Payable Guangdong Highway Construction Co. Ltd. 196789158.44

Dividend payable Guangdong Provincial Freeway Co.Ltd. 22339621.20

Dividend payable Xinyue Co. Ltd. 5570858.29

Dividend Payable Guangdong Traffic Development Co. Ltd. 899075.22

Contract Liabilities

Guangdong Xinyue Traffic Investment Co.Ltd.

22300.88

Non-current liabilities due 1

year

Guangdong Jiangzhong Expressway Co. Ltd. 39150.00 43065.00

Long-term payable Guangdong Jiangzhong Expressway Co. Ltd. 36000000.00 36000000.00

7. Related party commitment

None

XIII. Stock payment

1. The Stock payment overall situation

□Applicable √ Not applicable

2. The Stock payment settled by equity

□Applicable √ Not applicable

3. The Stock payment settled by cash

□Applicable √ Not applicable

4. Modification and termination of the stock payment

None

5.Other

None

XIV. Commitments

1. Significant commitments

Significant commitments at balance sheet date

（1）Capital commitment

On June 15 2016 the Company’s 29th meeting (Provisional) of the seventh board of directors was

convened. In the meeting the Proposal on Increasing Funding for Guangdong Fokai Expressway Co. Ltd

pertaining to the Renovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou

National Expressway was examined and approved agreed that based on the approved total investment amount by

relevant government department then the company’s subsidiary- Guangdong Fokai Expressway Co. Ltd carries

out the investment and construction of the renovation and expansion project of Sanbao-to-Shuikou Section of

Shengyang-to-Haikou National Expressway; the company increases funding for Guangdong Provincial Fokai

Expressway Co. Ltd pertaining to the renovation and expansion project of Sanbao-to-Shuikou Section of

Shengyang-to-Haikou National Expressway with the contributed funds as a proportion of 35% of the total

investment amount approved by relevant government department. The afore-said item had been examined and

approved in the first extraordinary general shareholder meeting The Company had received the approval of the

National Development and Reform comission about the uandongProvincial Santbao-Shuikou Expressway Section

Rebubuilding and Expansion Project(NO.1874-2016-NDRC Infrastructure Document)from Guangdong Provincel

Development and reform Commission On October 11 2016 agreed with the implementation of the Guangdong

Provincial Sanbao-Shuikou Expressway Section Rebuilding and Expansion Project. It’s estimated that the total

investment of this project is about 3.513 billion yuan(the static investment is about 3.289 billion yuan) of which

the project capital is 1.23 billion yuan that accounts for 35% of the total investment and such amount of the

project capital will be provided by Guangdong Provincial Fokai Expressway Co. Ltd and the rest amount of

2283 billion yuan will be solved by using bank loans. According to the "Official Reply to the preliminary design

of reconstruction and extension project of Guangdong Sanbao to Shuikou Road by Ministry of Transport"

(No.73-2017 Transport Road Document) issued by Guangdong Provincial Department of Transport the Ministry

of Transport checked and ratified that the general estimate of the preliminary design of reconstruction and

extension project of Guangdong Sanbao to Shuikou Road is RMB 3.426 billion As of June 302020 The

accumulated expenses occurred of Sanboto Shuikou Highway extension project was 2.587 billion yuan.

No Contract Counterparty

Economic

Content

Contract Amount Fulfilled as of June 30 2020

1 China Railway Tunnel Group Co.

Ltd.

Civil

Engineering

251026485.00 247327027.72

2 Boli Changda Engineering Co. Ltd. Civil

Engineering

624878240.00 579422527.93

3 China Railway 18th Bureau Group

Co. Ltd.

Civil

Engineering

219974609.00 205366454.48

4 CCCC First Navigation Engineering

Bureau Co. Ltd

Civil

Engineering

355014108.00 300078345.44

2. Contingency

(1) Significant contingency at balance sheet date

As of June 302020The company does not disclose the pension plan undisclosed matter should exist.

(2) The Company have no significant contingency to disclose also should be stated

None

XV. Events after balance sheet date

1.Profit distribution

On April 3 2020 the ninth board of directors of the Company held its fourth meeting approved the profit

distribution plan for 2019 and distributed cash dividends of RMB 882320185.17. On June 29 2020 the

Company convened the 2019 Annual General Meeting of Shareholders reviewed and approved the profit

distribution plan and distributed cash dividends of RMB 882320185.17.

On August 6 2020 the cash dividend of A shareholders entrusted by the Company to China Clearing

Shenzhen Branch will be directly transferred to its capital account through the shareholder custody securities

company (or other custodian institutions); Dividends of restricted shares before the initial offering of A shares and

cash dividends of Guangdong Provincial Freeway Co.Ltd. a shareholder of A shares are distributed by the Company

itself. On August 10 2020 the cash dividends of B shareholders were directly transferred to their capital accounts

through the custodian securities companies or custodian banks through shareholders.In RMB

Profits or dividends declared upon examination and approval 882320185.17

XVI.Other significant events

1. Segment information

The company's business for the Guangfo Expressway the Fokai Expressway and Jingzhu Expressway Guangzhu

Section toll collection and maintenance work the technology industry and provide investment advice no other

nature of the business no reportable segment.

2.Government Subsidy

(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method

Subsidy item Category Open

ing

balan

New subsidy

amount in

current period

The carry-over

in current period

is included in

profit and loss

amount

Other

change

Closing balance Presentation items

carried over into

profit or loss in

the current period

Asset-related/re

venue-related

Cancel the special

subsidy for the

expressway provincial

toll station project

Financial

appropriation

35416900.00 3137075.19 32279824.81 Other income Assets related

Discount interest fund Discount

interest fund

2500000.00 2500000.00 Financial

Expreses

Income related

(2) Government subsidies included in current profits and losses using the total amount method

Subsidy item Category Amount included in profit or loss

in the current period

Presentation items included

in profit or loss in the

current period

Asset-related/revenue-related

Subsidy for post

stabilization

Subsidy for post

stabilization

398471.22 Other income Income related

3.Other important transactions and events have an impact on investors decision-making

(1)June 152007 early in the morning The 325 Jiujiang Bridge collapsed on # 23 pier for ―Nanguijii 035#

collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway Company leads the

collapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On June 10 2009 Jiujiang Bridge opened

to traffic has been restored.On June 192007 ， The Ministry of Communications the State Production Safety Supervision and

Administration Commission issued the JiaoAnWeiming File [2007] No. 8 "Notification on the Guangdong"6.15

"Jiujiang Bridge Collision Accident" initially determined the causes of the accident are: the incident ship

suddenly met heavy fog on the way from Foshan Gaoming to Sunde the captain neglected looking out did not

take proper measures and deviated from the main channel touched the 325 National Road Jiujiang Bridge the

non-navigation bridge pier and caused the collapsion of part of the Jiujiang bridge. The accident was an unnatural

On July 192007，Fokai Company applied preservation of property to Guangzhou Maritime Court.On August

222007，Fokai Company officially prosecuted to Guangzhou Maritime Court asking Foshan South Sea Shipping

Company Limited and Yang Xiong to undertake the compensation 25587684 yuan for the loss caused by

collapsing of Jiujiang Bridge. On August 28 2007 Guangzhou Maritime Court accepted the case. According to

the (2007)-Canton Haifa No. 332 ruling book issued by Guangzhou Maritime Court the proceeding of the case

was suspended.

After the court accepted the case the incident investigation team of Guangdong Provincial Government had

not made the final report of Jiujiang Bridge accident. The Court on November 5 2007 decided to suspend the

proceeding. In September 2008 Jiujiang Bridge accident investigation report was officially reported and resumed

the proceedings. On December 5 2008 Guangzhou Marine Court opened a court trial to procceeded the case.

Currently Guangzhou Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide

therefore on January 5 2009 Guangzhou Maritime Court ruled the suspension of the case. On September 17

2013 the Guangzhou Maritime Court issued a notice of civil and eliminate the cause of suspension of proceedings

the court decided to resume the trial. On December 19 2013 the Guangzhou Maritime Court opened a court

session has not yet made the first-instance judgment. On March 7 2014 the Court made the first instance verdict:

the defendant Foshan Nanhai Yuhang ship Services Co. Ltd. and Yang Xiong compensated the plaintiff Fokai

Expressway Co. Ltd. toll revenue losses of 19357500.96 yuan; the court dismissed the plaintiff other aspirations.

The defendant appealed to the Higher People's Court of Guangdong Province the Guangdong Provincial Higher

People's Court ruled on June 5 2014 the case discontinued proceedings. By the end of the report period the

abatement of action causes are already removed and the provincial higher court restores the hearing and conducts

the investigation on April 21 2017. On 27 February 2020 the company received a court decision of second

instance which rejected the appeal and upheld the original sentence. Because the defendant failed to perform the

effective judgment the company applied to Guangzhou Maritime Court for compulsory execution. On July 27

2020 the company received the enforcement ruling of Guangzhou Maritime Court ([2020] Y 72 Z No.247 - 3rd);

A total execution payment of RMB 657219.33 was transferred to our company by the court and the execution

procedure was terminated according to law.

(2)The 26th (Provisional)Meeting of the sixth board of directors of Guangdong Provincial Expressway

Development Co. Ltd. was held of May 10 2012. The meeting examined and adopted the proposal Concerning

the Company’ s Accepting the insurance Bond Investment Plan of Pacific Asset Management Co. Ltd. The

Company was approved to accept the insurance bond investment plan made by Pacific Asset Management Co.

Ltd. The amount of proceeds to be raised is not more than 1.5 billion yuan . Floating interest rate plus guaranteed

base interest rate applies as the interest rate. The Floaing interest rate shall not exceed the basic interest rate of

RMB loan with a term of over five years on the day when the investment fund of the insureance company is

transferred into the Company’s account and the corresponding days of the future years which shall be adjusted

once each year. The guaranteed base interest rate is 5.6%. The concrete amount of raised proceeds shall be

within maximum limit of investment fund filed with CIRC. The actual amount wholly transferred to the

Company shall apply. The final interest rate is subject to investment Contract for Bond Investment Plan between

Pacific and Guangdong Expressway Filed with CIRC. It was approved to authorize the management of the

Company to implement the above-mentioned matters.

The Company was approved to provide counter guarantee to Guangdong Communication Group

Co.Ltd.with 75% equity of Guangdong Fokai Expressway Co. Ltd. Held by it . As of the end of this period the

company has returned all the raised funds to Pacific Asset Management Co. Ltd. On May 22 2020 the company

completed the cancellation registration of equity pledge of Guangzhou Guangzhu Transportation Investment

Management Co. Ltd.

（3）The 19th (Provisional)Meeting of the Eighth board of directors of Guangdong Provincial Expressway

Development Co. Ltd. was held of August 7 2018. The meeting examined and approved the Proposal on Issuing

Medium-Term Notes， Agree that the company intends to register in the China Interbank Market Dealers

Association with a quota of not more than 3.4 billion yuan (inclusive) which is within 40% of the company's

latest audited net assets. Apply for a one-time or installment in a timely manner with a term of no less than 5

years (including 5 years) and raise funds to repay the loan and replenish working capital; The matter has been

passed by the resolution of the first interim shareholders' meeting in 2018.On January 4 2019 the dealers association issued a Notice of Acceptance of Registration (ZSXZ [2019]

MTN 9). The amount of acceptance of the company's medium-term notes is 3.4 billion yuan and the amount of

registration is valid for 2 years from the date of receipt of the notice of acceptance and it is jointly underwritten

by Industrial and Commercial Bank of China Limited and China Construction Bank Limited. The company

borrowed 680 million yuan on March 1 2019.XVII..Notes of main items in financial reports of parent company

1.Account receivable

1.Classification account receivables.

In RMB

Category

Amount in year-end Balance Year-beginning

Book Balance

Bad debt

provision

Book value

Book Balance

Bad debt

provision

Book valueAmount Proportio

n(%)

Amount Propor

tion(%

)

Amount Proportio

n(%)

Amou

Propor

tion(%

)

Of which

Accrual of bad debt provision by

portfolio

21134758.62 100.00% 21134758.62 21864051.27 100.00% 21864051.27

Of which：

Aging portfolio 21134758.62 100.00% 21134758.62 21864051.27 100.00% 21864051.27

Total 21134758.62 100.00% 21134758.62 21864051.27 100.00% 21864051.27

Accrual of bad debt provision by single item: None

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of other receivables if the provision for bad debts of

bills receivable is accrued according to the general model of expected credit loss:

□Applicable √Not applicable

Disclosure by aging

In RMB

Aging Closing balance

Within 1 year（Including 1 year） 21134758.62

Total 21134758.62

(2) Accounts receivable withdraw reversed or collected during the reporting period

None

（3）The current accounts receivable write-offs situation

None

（4）The ending balance of other receivables owed by the imputation of the top five parties

In RMB

Name Amount Proportion(%) Bad debt provision

Guangdong Union Electronic Services

Co. Ltd.

21134758.62 100.00%

Total 21134758.62 100.00%

（5）Account receivable which terminate the recognition owning to the transfer of the financial assets

None

(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts

receivable

None

Other note：

2.Other accounts receivable

In RMB

Items Balance in year-end Balance Year-beginning

Dividend receivable 166906851.62 7205472.90

Other receivable 6683668.23 6230178.29

Total 173590519.85 13435651.19

（1）Dividend receivable

1)Dividend receivable

In RMB

Items Balance in year-end Balance Year-beginning

Guangdong Radio and Television Networks

investment No.1 Limited partnership enterprise

1205472.90 1205472.90

Guangdong Yueke Technology Petty Loan Co. Ltd. 6000000.00

Jingzhu Expressway Guangzhu Section Co. Ltd. 41587034.32

Guangzhou Guangzhu Traffic Investment

Mangement Co. Ltd.

114364344.40

Zhaoqing Yuezhao Highway Co. Ltd. 9750000.00

Total 166906851.62 7205472.90

2）Significant dividend receivable aged over 1 year

None

（2） Other accounts receivable

1) Other accounts receivable classified by the nature of accounts

In RMB

Nature Closing book balance Opening book balance

Balance of settlement funds for

securities transactions

30844110.43 30844110.43

Cash deposit 1953995.00 1935101.00

Petty cash 2582145.37 1700634.57

Other 2147527.86 2594442.72

Total 37527778.66 37074288.72

2）Bad-debt provision

In RMB

Bad Debt Reserves

Stage 1 Stage 2 Stage 3

TotalExpected credit

losses over the next

12 months

Expected credit loss over

life (no credit

impairment)

Expected credit losses for

the entire duration (credit

impairment occurred)

Balance as at January

1 2020

30844110.43 30844110.43

Bad Debt Reserves

Stage 1 Stage 2 Stage 3

TotalExpected credit

losses over the next

12 months

Expected credit loss over

life (no credit

impairment)

Expected credit losses for

the entire duration (credit

impairment occurred)

Balance as at January

1 2020 in current

—— —— —— ——

Balance as at June

302020

30844110.43 30844110.43

Loss provision changes in current period change in book balance with significant amount

□Applicable √Not applicable

Disclosure by aging

In RMB

Aging Closing balance

Within 1 year 2846525.95

1-2 years 1010739.70

2-3 years 443715.70

Over 3 years 33226797.31

3-4 years 1490184.00

4-5 years 463491.88

Over 5 years 31273121.43

Total 37527778.66

3) Accounts receivable withdraw reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

In RMB

Category

Opening

balance

Amount of change in the current period

Closing

balanceAccrual

Reversed or

collected

amount

write - off Other

Accrual of bad

debt provision

by single item:

30844110.43 30844110.43

Total 30844110.43 30844110.43

Of which the significant amount of the reversed or collected part during the reporting period :None

4)The actual write-off other accounts receivable: None

5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party

In RMB

Name Nature Closing balance Aging

Proportion of the

total year end

balance of the

accounts

receivable(%)

Closing balance of

bad debt provision

Kunlun Securities Co.Ltd

Securities

trading

settlement

funds

30844110.43

Over 5

years

82.19% 30844110.43

Petty cash Petty cash 2429631.37

Within 1

year

6.47%

Guangdong Litong Real

Estates Investment Co. Ltd.

Deposit 1505864.00 3-4 years 4.01%

Foshan Hezhan Yinghui

Property Management Co.Ltd.

Disposal of

fixed assets

935820.00

Within 1

year

2.49%

Guangdong Provincial

Freeway Co.Ltd.

Entrustment

management

fee

463491.88 4-5 year 1.24%

Total -- 36178917.68 -- 96.40% 30844110.43

(6) Accounts receivable involved with government subsidies

None

(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets None

(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts

receivable

None

3. Long-term equity investment

In RMB

Items End of term Beginning of term

Book Balance

Impairment

provision

Book value Book Balance

Impairment

provision

Book value

Investment in subsidiaries 1613665008.81 1613665008.81 1533665008.81 1533665008.81

Investment in joint

ventures and associates

3231674455.49 3231674455.49 3255739898.36 3255739898.36

Total 4845339464.30 4845339464.30 4789404907.17 4789404907.17

（1）Investment to the subsidiary

In RMB

Name Opening balance

Increase /decrease in reporting period

Closing balance

Closing

balance of

impairme

provision

Add

investment

Decre

ased

invest

ment

Withdra

impairm

ent

provisio

Other

Jingzhu Expressway Guangzhu

Section Co. Ltd.

419105446.88 419105446.88

Guangzhou Guangzhu Traffic

Investment Management Co. Ltd.

859345204.26 859345204.26

Guangfo Expressway Co. ltd. 154982475.25 154982475.25

Guangdong Expressway

Technology Investment Co. Ltd.

95731882.42 95731882.42

Yuegao Capital Investment

(Hengqin) Co. Ltd.

4500000.00 80000000.00 84500000.00

Total 1533665008.81 80000000.00 1613665008.81

（2）Investment to joint ventures and associated enterprises

In RMB

Name Opening balance

Increase /decrease in reporting period

Closing balance

Closing

balance of

impairment

provision

Add

investment

Decreased

investmen

Gain/loss of

Investment

Adjustment of

other

comprehensive

income

Other equity

changes

Declaration of

cash dividends

or profit

Withdra

impairm

ent

provisio

her

I. Joint ventures

Guangdong

Guanghui

Expressway Co.

Ltd.

1048473573.52 43495261.34 3954180.00 24715954.57 1071207060.29

Subtotal 1048473573.52 43495261.34 3954180.00 24715954.57 1071207060.29

II. Associated enterprises

Guangdong

Jiangzhong

Expressway Co.

Ltd.

179491516.98 -2474550.29 177016966.69

Ganzhou Gankang

Expressway Co.

Ltd.

213672650.90 -18334081.49 195338569.41

Ganzhou Kangda

Expressway Co.

Ltd.

234733526.86 5693920.94 240427447.80

ShenzhenHuiyan

Expressway Co.

Ltd.

262682427.44 916998.38 263599425.82

Guoyuan Securities

Co.Ltd.

793926807.52 14629008.65 2533278.11 11940297.90 799148796.38

Guangdong Yueke

Technology Petty

Loan Co. Ltd.

214637335.45 4318117.99 218955453.44

Zhaoqing Yuezhao

Highway Co. Ltd.

308122059.69 7608675.97 49750000.00 265980735.66

Subtotal 2207266324.84 12358090.15 2533278.11 61690297.90 2160467395.20

Total 3255739898.36 55853351.49 2533278.11 3954180.00 86406252.47 3231674455.49

4. Business income and Business cost

In RMB

Items Amount of current period Amount of previous period

Revenue Cost Revenue Cost

Main business 288021522.60 326653026.85 617314121.48 325665097.11

Other 5558207.44 2004931.99 5812395.87 3525577.41

Total 293579730.04 328657958.84 623126517.35 329190674.52

5.Investment income

In RMB

Items

Amount of current period Amount of previous period

Long-term equity investment income

accounted by cost method

380951378.72 670160115.89

Long-term equity investment income

accounted by equity method

55853351.49 237712998.09

Investment return on investments held to

maturity during the holding period

50785213.04 38528868.23

Interest income from debt investment

during holding period.

25494258.90 29257519.49

Total 513084202.15 975659501.70

XVIII. Supplementary Information

1.Current non-recurring gains/losses

√ Applicable □Not applicable

In RMB

Items Amount Notes

Gains/Losses on the disposal of non-current assets -184874.06

Government grants recognized in the current period except for

those acquired in the ordinary course of business or granted at

certain quotas or amounts according to the country’s unified

standards

3535546.41

Net amount of non-operating income and expense except the

aforesaid items

2070546.90

Other non-recurring Gains/loss items 335742.79

Items Amount Notes

Less :Influenced amount of income tax 1440123.12

Influenced amount of minor shareholders’ equity (after tax) 632378.68

Total 3684460.24 --

For the Company’ s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on

information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and

its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure

for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as

recurring gains and losses it is necessary to explain the reason.

□ Applicable √Not applicable

2. Return on equity (ROE) and earnings per share (EPS)

Profit as of reporting period Weighted average ROE (%)

EPS（Yuan/share）

EPS-basic EPS-diluted

Net profit attributable to common

shareholders of the Company

-0.06% -0.0028 -0.0028

Net profit attributable to common

shareholders of the Company

after

deduction of non-recurring profit

and loss

-0.10% -0.0046 -0.0046

3.Other

XII. Documents Available for Inspection

1. Accounting statements carried with personal signatures and seals of legal representative Chief Financial officer

and Financial Principal.

2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures

of certified Public accountants.

3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by

China Securities Regulatory Commission in the report period.

行情