2021 Annual Report
Guangdong Provincial Expressway Development Co. Ltd.2021 Annual Report
March 2022
12021 Annual Report
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 The Company leader Mr. Wang Chunhua General Manager Mr. Lu Ming Chief financial
officer and the Ms.Zhou Fang the person in charge of the accounting department (the person in charge of the
accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this annual
report.All the directors attended the board meeting for reviewing the Annual Report.The toll revenues of Expressway is main source of the major business income of the company The charge
standard of vehicle toll must be submitted to the same level people's government for review and approval after the
transport regulatory department of province autonomous region or municipality directly under the central
government in conjunction with the price regulatory department at the same level consented upon examination.Therefore the adjustment trend of the charge price and the charge price if has the corresponding adjustment in the
future price level when the cost of the company rises still depend on the approval of relevant national policies and
government departments and the company isn't able to make timely adjustment to the charge standard in
accordance with the its own operation cost or the change of market supply demand. So the change of charge
policy and the adjustment of charge standard also have influence on the expressways operated by the company to
some extent. So the charging policy changes and charges adjustment will affect the highways operation of the
company.The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
2090806126 for the base the Company would distribute cash dividend to all the shareholders at the rate of CNY
5.70 for every 10 shares (with tax inclusive) 0 bonus shares（including tax）and no reserve would be converted
into share capital.
22021 Annual Report
Table of Contents
I.Important Notice Table of contents and Definitions
II. Company Profile & Financial Highlights.III. Management Discussion &Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial Report
32021 Annual Report
Documents available for inspection
1. Accounting statements carried with personal signatures and seals of legal representative General Manager
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.
42021 Annual Report
Definition
Terms to be defined Refers to Definition
Reporting period This year Refers to January 1 2021 to December 31 2021
The annual report of the company was approved by the board of
Reporting date Refers to
directors on 2021 that is March 15 2022
YOY Refers to Compared with 2020
The Company /This Company Refers to Guangdong Provincial Expressway Development Co.Ltd.Communication Group Refers to Guangdong Communication Group Co. Ltd.Provincial Expressway Refers to Guangdong Provincial Freeway Co.Ltd.Guangdong Provincial Expressway Development Co.Ltd.Fokai
Fokai Company Refers to
Branch
Reconstruction and extension Project of the Reconstruction and Expansion Project of Sanbao-Shuikou Section
Refers to
South Section of Fokai Expressway of Fokai Expressway.Guangfo Company Refers to Guangdong Guangfo Expressway Co. Ltd.Guangdong Expressway Capital Refers to Yuegao Capital Investment (Guangzhou) Co. Ltd.Guangzhu East Company Refers to Jingzhu Expressway Guangzhu Section Co. Ltd.Guanghui Company Refers to Guangdong Guanghui Expressway Co. Ltd.
52021 Annual Report
II. Company Profile & Financial Highlights.
1.Company Profile
Stock abbreviation: Expressway A Expressway B Stock code： 000429，200429
Stock 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粤高速
Company (if any)
English name (If any) Guangdong Provincial Expressway Development Co.Ltd.English abbreviation (If any) GPED
Legal Representative Zheng Renfa
Registered address 85 Baiyun Road Guangzhou Guangdong Province
Postal code of the Registered
510100
Address
Historical change of the 1992—1999，4/FDongjian BuildingNo.503Dongfeng Road Guangzhou;Since 1999 85
company's registered address Baiyun Road Guangzhou Guangdong Province
45-46/F Litong Plaza No.32 Zhujiang East Road Zhujiang New City Tianhe Disrtict
Office Address
Guangzhou
Postal code of the office address 510623
Internet Web Site www.gpedcl.com
E-mail ygs@gdcg.cn
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Yang Hanming Liang Jirong
Contact 46/F Litong Plaza No.32 Zhujiang East Road 45/F Litong Plaza No.32 Zhujiang East Road
address Zhujiang New City Tianhe District Guangzhou Zhujiang New City Tianhe District Guangzhou
Tel 020-29004619 020-29004523
Fax 020-38787002 020-38787002
E-mail Hmy69@126.com 139221590@qq.com
3. Information disclosure and placed
Newspapers selected by the Company for Securities Times China Securities Shanghai Securities Daily and
information disclosure Hongkong Commercial Daily.
62021 Annual Report
Internet website designated by CSRC for publishing
www.cninfo.com.cn
the Annual report of the Company
The place where the Annual report is prepared and
Securities affair Dept of the Company
placed
4.Changes in Registration
Organization Code 91440000190352102M
Changes in principal business activities since
No change
listing (if any)
On November 2000 In accordance with Cai Guan Zi (2008) No. 109
Document of Ministry of Finance and Yue Ban Han (2000) No. 574 Document
of General Office of Guangdong People's Government the state-owned shares
of Guangdong Expressway originally entrusted to Guangdong Expressway
Changes is the controlling shareholder in the
Company (now renamed as "Guangdong Provincial Expressway Co. Ltd.") for
past (is any)
management were transferred to Guangdong Communication Group Co. Ltd.for holding and management. After the transfer of state-owned shares
Guangdong Communication Group Co. Ltd. became the largest shareholder of
the Company. The nature of equity was defined as state-owned shares.
5. Other Relevant Information
CPAs engaged
Name of the CPAs Yong Tuo Cerified Public Accountants(Special General Partnership)
Office address： 13/F 2 Building No.1 North Street Guandongdian Chaoyang District Beijing
Names of the Certified Public
Shi ShaoyuHuang Zhiyan
Accountants as the signatories
The sponsor performing persistent supervision duties engaged by the Company in the reporting period.□ Applicable√ Not applicable
The Financial advisor performing persistent supervision duties engaged by the Company in the reporting period
√Applicable □ Not applicable
Name Office address Name of sponsor Consitent supervision period
27-28/F 2 Black，No1. Guomao
China International Capital Building Jianguomen Wai
Xie Yi Long Hai 2020-2021
Corporation Limited Street Chaoyang District
Beijing
72021 Annual Report
6.Summary of Accounting data and Financial index
Whether it has retroactive adjustment or re-statement on previous accounting data
√Yes □ No
Changes of this period over
20202019
2021 same period of Last year(%)
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Operating income（Yuan） 5288057677.93 3790348876.26 3790348876.26 39.51% 3057935584.43 4999016766.74
Net profit attributable to the
shareholders of the listed company 1700406981.99 867842774.78 867842774.78 95.93% 1258628101.71 1469187067.83（Yuan）
Net profit after deducting of
non-recurring gain/loss attributable to
1693091639.41704821643.20704821643.20140.22%1249576930.751249579043.32
the shareholders of listed company（Yuan）
Cash flow generated by business
3669744721.162636187241.052636187241.0539.21%1988551897.833222681187.05
operation net（Yuan）
Basic earning per share(Yuan/Share) 0.81 0.42 0.42 92.86% 0.60 0.70
Diluted gains per share(Yuan/Share) 0.81 0.42 0.42 92.86% 0.60 0.70
Weighted average ROE(%) 20.11% 8.27% 8.27% 11.84% 13.09% 14.18%
End of 2020 Changed over last year（％） End of 2019
End of 2021
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Gross assets（Yuan） 18875766799.31 19748578658.11 19748578658.11 -4.42% 17674545340.78 20666939285.90
Net assets attributable to shareholders
8982437985.177933136499.117933136499.1113.23%9823426849.7510557360463.78
of the listed company（Yuan）
82021 Annual Report
Retroactive adjustment or restatement of causes: Merger of enterprises under the same control
The lower of the company’s net profit before and after the deduction of non-recurring gains and losses in the last three fiscal years is negative and the auditor's report
of the previous year shows that the Company’s going concern ability is uncertain.□ Yes √No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative.□ Yes √No
92021 Annual Report
7.The differences between domestic and international 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
8.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 1257975487.27 1230499182.54 1485357499.71 1314225508.41
Net profit attributable to the
399100166.26449760184.38545389653.71306156977.64
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
395414595.12447328563.52537138406.69313210074.08
to the shareholders of listed
company
Net Cash flow generated by
849020540.34966272676.911072587838.82781863665.09
business operation
9.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMBItems Amount (2021) Amount (2020） Amount (2019) Notes
Non-current asset disposal gain/loss(including the write-off
4350214.54-8261533.187607268.21
part for which assets impairment provision is made)
Government subsidies recognized in current gain and
loss(excluding those closely related to the Company’s business 16348006.07 8359291.82 87937.00
and granted under the state’s policies)
Current net gains and losses occurred from period-begin to 546213524.55 701856178.51
102021 Annual ReportItems Amount (2021) Amount (2020） Amount (2019) Notes
combination day by subsidiaries resulting from business
combination under common control
Net amount of non-operating income and expense except the
-5840734.56-1069827.30-1393149.65
aforesaid items
Other non-recurring Gains/loss items 1252349.09 974321.89 1652603.05
Less :Influenced amount of income tax 4027139.54 2214.32 1130270.54
Influenced amount of minor shareholders’ equity (after tax) 4767353.02 383192431.88 489072542.07
Total 7315342.58 163021131.58 219608024.51 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
None
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.
112021 Annual Report
III. Management Discussion & Analysis
I. Industry information of the Company during the reporting period
The Company's main business is the investment construction charging and maintenance management of toll
highways and bridges which shall be classified into the highway management and maintenance industry.Highway industry is the basic and leading service industry of national economy which can rationally allocate
relevant resources improve the quality and efficiency of economic operation and play a leading role in the
transportation industry. As an important part of the highway industry the expressway is an important national
resource which is characterized by high driving speed large traffic capacity low transportation cost and safe
driving and plays an important role in promoting national economic growth improving people's live quality and
safeguarding national security.With the basic penetration of the "ten-vertical and ten-horizontal" comprehensive transportation corridor and
the basic completion of the "71118" national expressway network planning China's expressway network has been
continuously extended with significantly increased industry development. According to the statistical data of the
2020 Statistical Bulletin on Development of Transportation Industry issued by the Ministry of Transport by the
end of 2020 the total mileage of expressways in China has reached 161000 kilometers ranking first in the world
with an increase of 11400 kilometers and a year-on-year increase of 7.62%. With China's economic development
stepping into a new normal the national economy is constantly growing the strategies such as coordinated
development of Beijing-Tianjin-Hebei regional integration of the Yangtze River Delta development of the
Yangtze River Economic Belt and Guangdong-Hong Kong-Macao Greater Bay Area construction are further
advanced the whole society's demand for supporting services of expressways is expected to increase continuously
and China's expressway industry still witnesses a large development potential in the future.As an important infrastructure industry for the development of national economy most of the expressway
transportation demands are rigid demands which are less affected by macroeconomic fluctuations and less
cyclical. As the operating income of expressway enterprises is mainly in cash and the cash flow is abundant it
ensures the stability and security of expressway industry operation and finance. When the economy is booming
the rapid growth of traffic can drive the development of the industry to a certain extent; during the period of
economic adjustment the expressway industry can better resist the market impact caused by macroeconomic
changes with its unique rigid demands.II.Main Business the Company is Engaged in During the Report Period
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 ExpresswayJingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangzhou
Guanghui Expressway Co. Ltd.. Guangdong Jiangzhong Expressway Co.Ltd. Zhaoqing Yuezhao Expressway
Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Technology
Petty Loan Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd Hunan Lianzhi
122021 Annual Report
Technology Co. Ltd.and SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.As of the end of the reporting period the company’s share-controlled expressway is 306.78 km and the
share-participation expressway is 295.88 km.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” Jingzhu Expressway Guangzhu Section is a fast and convenient expressway Guanghui
Expressway is an important section of the national key highway-the 15th Hengshanwei to Yunnan Qingshuihe
highwayAnd 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. Main business analysis
Ⅰ.General
The year of 2021 is the first year of the 14th Five-Year Development Plan during which the Company
focuses on key tasks promotes the normalization of epidemic prevention and control operation and production as
a whole successfully completes its annual work objectives and maintains and increases the value of state-owned
assets by 120.04%.
（1）It has promoted comprehensively deepening of the reform of state-owned enterprises. The Company
will carefully combine the world-class management promotion action with the three-year action of state-owned
enterprise reform comprehensively deepen the state-owned enterprise reform and actively well ensure related
work. By the end of December 2021 most tasks had been completed exceeding the target requirement.
（2）The verification of the charging period for the reconstruction and expansion of the south section of
Foshan-Kaiping Expressway has been completed. In June 2021 the reconstruction and expansion project of
Sanbao-Shuikou section of Foshan-Kaiping Expressway was approved by Guangdong Provincial People's
Government and the approved charging period of the project is 24.6011 years which laid a solid foundation for
the Company's sustainable development.
（3）The preliminary work of five-expressway reconstruction and expansion has been carried out: it has
successfully completed the investment decision-making procedure of the reconstruction and expansion project of
Jiangmen-Zhongshan Expressway a provincial key construction project of the Company's capital increase. It has
gone through the formalities of shareholders' capital contribution in time according to the progress of the project
to ensure the demand of reconstruction and expansion project construction funds; continued to follow up the
preliminary research work of reconstruction and expansion project in Guangdong-Zhaoqing East
Guangzhou-Zhuhai and Guangzhou-Huizhou expressways; and assisted in the regulation and estimation period
audit investment and financing plan preparation of the project of Huizhou-Shenzhen Expressway reconstruction
and expansion.
（4）It prepares the "14th Five-Year Plan" in high quality clarifies the Company as the capital operation
platform that focuses on serving the transformation and upgrading of the expressway transportation industry in
132021 Annual Report
Guangdong Province with cultivation and integration of new industries such as road industry and smart
transportation industry in Guangdong Province as the development direction continuously expands and upgrades
the scale of the main expressway business; improves industrial basic ability and profitability; cultivates the ability
of independent innovation; actively lays out the smart transportation industry; carries out intelligent upgrading
around the expressway; adheres to the two-wheel drive of scientific and technological transformation and capital
operation and continues to promote the capital operation of listed companies in combination with provincial
transportation planning so as to make the Company better stronger and bigger.
（5）It participates in the development strategy of green power transportation in State Power Investment
Corporation (SPIC) and builds a technical service platform for heavy truck with replaceable battery by investing
in SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd. through its wholly-owned subsidiary Yuegao Capital.In 2020 the company's revenue was greatly reduced by the New Coronavirus epidemic.. In 2021 the number
of toll days the company participated in the holding expressway increased YOY. The toll revenue of each
expressway increased of the Company are as follows:
Volume of vehicle traffic in Increase Toll income in 2021 Increase /Decrease(%)
2021（Ten thousands vehicles） /Decrease(%) （Ten thousands）
Guangfo Expressway 7928.27 9.06% 44885.46 36.14%
Fokai Expressway 8574.49 11.09% 145437.73 51.26%
Jingzhu Expressway 7165.82 15.77% 114088.10 45.82%
Guangzhu East Section
Guanghui Expressway 8295.24 10.79% 212619.92 33.53%
Huiyan Expressway 5175.24 18.98% 24037.38 29.28%
Guangzhao Expressway 3813.00 31.84% 53568.64 22.97%
Jiangzhong Expressway 6710.69 10.09% 47663.06 40.74%
Kangda Expressway 145.57 -1.52% 31287.88 47.65%
Gankang Expressway 460.81 4.62% 19905.23 55.10%
Guangle Expressway 3926.49 13.24% 335608.32 35.10%
On the whole the overall trend of traffic flow and toll income of each holding section is good. Compared with the
data before the outbreak the main ones that have achieved significant growth are Fokai Expressway and
Guanghui expressway among which:
(1)Foshan-Kaiping Expressway is affected by the fully opening to traffic of Kaiping–Yangjiang Expressway
which is connected with it. While leading to improved traffic capacity of the main road surface and traffic
backflow it also increases new traffic flows and greatly increases toll income.
(2)Due to the opening of Huadu-Dongguan Expressway on November 1 2020 and Heyuan-Huizhou-Dongguan
Expressway on December 28 2020 the traffic flow is attracted to Guanghui expressway forming a new traffic
flow.
2. Revenue and cost
(1)Component of Business Income
In RMB
2021 2020 Increase /decrease
142021 Annual Report
Amount Proportion Amount Proportion
Total operating
5288057677.93100%3790348876.26100%39.51%
revenue
Industry
Highway
5170312170.9797.77%3665926709.1096.72%41.04%
transportations
Other 117745506.96 2.23% 124422167.16 3.28% -5.37%
Product
Highway
5170312170.9797.77%3665926709.1096.72%41.04%
transportations
Other 117745506.96 2.23% 124422167.16 3.28% -5.37%
Area
Guangfo
448854642.128.49%329710947.818.70%36.14%
Expressway
Fokai Expressway 1454377306.80 27.50% 961484310.59 25.37% 51.26%
Jingzhu
Expressway 1140880993.81 21.57% 782378756.64 20.64% 45.82%
Guangzhu Section
Guanghui
2126199228.2440.21%1592352694.0642.01%33.53%
Expressway
Other 117745506.96 2.23% 124422167.16 3.28% -5.37%
Sub-sales model
Highway
5170312170.9797.77%3665926709.1096.72%41.04%
transportations
Other 117745506.96 2.23% 124422167.16 3.28% -5.37%
(2)Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
In RMB
Increase/decrea Increase/decrea
Increase/decrea
se of business se of gross
Gross se of revenue in
cost over the profit rate over
Turnover Operation cost profit the same period
same period of the same period
rate(%) of the previous
previous year of the previous
year(%)
(%) year (%)
Industry
Highway
5170312170.971874469918.2263.75%41.04%18.19%7.01%
transportations
152021 Annual Report
Increase/decrea Increase/decrea
Increase/decrea
se of business se of gross
Gross se of revenue in
cost over the profit rate over
Turnover Operation cost profit the same period
same period of the same period
rate(%) of the previous
previous year of the previous
year(%)
(%) year (%)
Product
Highway
5170312170.971874469918.2263.75%41.04%18.19%7.01%
transportations
Area
Guangfo
448854642.12145962137.5967.48%36.14%29.41%1.69%
Expressway
Fokai
1454377306.80714045421.1750.90%51.26%9.78%18.55%
Expressway
Jingzhu
Expressway
1140880993.81370994383.0067.48%45.82%32.55%3.25%
Guangzhu
Section
Guanghui
2126199228.24643467976.4669.74%33.53%18.54%3.83%
Expressway
Sub-sales model
Highway
5170312170.971874469918.2263.75%41.04%18.19%7.01%
transportations
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
(5)Component of business cost
Industry category
In RMB
20212020
Industry Proportion Increase
category Items Proportion inin the /Decrease
Amount Amount the operating
operating (%)
costs (%)
costs (%)
Highway Depreciation 1257315758.33 65.16% 1020703974.74 61.41% 23.18%
162021 Annual Report
transportations andAmortized
Highway Out of pocket
617154159.8931.99%565222471.7434.00%9.19%
transportations expenses
Other Other 55042107.34 2.85% 76297249.65 4.59% -27.86%
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
□ Yes √ No
(7)Relevant Situation of Significant Changes or Adjustment of the Business Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
□ Applicable √Not applicable
172021 Annual Report
3.Expenses
In RMB
2021 2020 Increase/Decrease(%) Notes
Administrative expenses 223605442.46 203945119.58 9.64%
Financial expenses 221714312.76 216182374.88 2.56%
In 2021 the R&D investment has been increased and new R&D projects have
been added such as "Research on Bridge Safety Monitoring and Application
Based on Beidou System" "Application of Monitoring System for Operational
Safety Cluster of Jiujiang Bridge in Foshan-Kaiping Expressway Expansion"
R & D expenses 13270938.73 404303.70 3182.42%
"All-weather Intelligent Monitoring and R&D Project for Key Road Sections of
Foshan-Kaiping Expressway" "Research on Traffic Guidance of Large Flow in
2021" "Traffic Simulation Platform" "Big Data Projection" and "Smart Party
Building Cloud Platform".
182021 Annual Report
4. Research and Development
√ Applicable □ Not applicable
Name of
Expected impact on the future
main R&D Project purpose Project progress Goal to be achieved
development of the Company
project
Research on
Bridge
Safety Carry out real-time monitoring of structural
Form an intelligent monitoring and early
Monitoring mechanics indexes such as deflection stress and Realize the perception digitization
warning system of expressway bridges
and displacement perceive and evaluate the Completed networking and intelligence of the
with "all-factor perception all-round
Application emergencies of expressway bridges quickly whole life cycle of bridges
service and all-service management"
Based on accurately and effectively
Beidou
System
Research on
Early
Warning Realize the early warning of the accident
and Safety may occur by ship colliding with the
Carry out research and exploration on technical Develop early warning technology of ship
Monitoring bridge effectively prevent the
research equipment development and standard yaw prevention based on video image
System for Completed occurrence of major catastrophic public
formulation of active early warning measures for monitoring technology and radar
Ship safety accidents of bridge collapse and
bridge ship collision. technology
Collision of ensure the safe and stable operation of
Jiujiang the expressway.Extra-large
Bridge
All-weather This project is the implementation of "Double Grasp the comprehensive road network Improve the operational efficiency of
Intelligent Outline" and "New Infrastructure Guiding Completed data information in real time through the expressways and the level of
Monitoring Opinions" which will provide important digital and intelligent construction of transportation safety promote the
192021 Annual Report
Name of
Expected impact on the future
main R&D Project purpose Project progress Goal to be achieved
development of the Company
project
and R&D demonstration and reference for the intelligent existing facilities. demonstration and application of smart
Project for development of highway traffic especially for highways and build up demonstrationKey Road intelligent development of expressways and sites for smart highways with “advancedSections of promotion of smart highway applications. technology moderate cost andFoshan-Kai first-class level in China”.ping
Expressway
Realize the practicality precision and automation
Realize the rapid perception and disposal
of induced information and gradually replace the It can improve the coordination and
of road incidents through the construction
current situation of traditional induced management efficiency of expressway
of road incident detection system; improve
information such as immobilization slogan and resources speed up the accident
the intelligentization of variable
Research on manual release by using the built cloud-controlled handling speed and play an important
information sign terminal through the
Traffic big data all-in-one machine and intelligent role in reducing traffic delays and
Completed technical docking of intelligent flow
Guidance of publishing platform. Strengthen the road economic losses and casualties caused
control and intelligent publishing platform
Large Flow monitoring means of Guangzhou-Foshan by traffic accidents. It can wholly
gateway; and realize integrated display of
Expressway by building a road incident detection improve the management and control of
traffic status visual perception intelligent
system realize the active marking ability of road traffic and service level by the
flow control and other applications for
high-speed sections and improve the response and owner.large-screen visual display system.handling ability to road incidents.
202021 Annual Report
Name of
Expected impact on the future
main R&D Project purpose Project progress Goal to be achieved
development of the Company
project
Initially realize the off-line
monitoring and analysis of
Build a traffic simulation model of 50-100
the traffic flow speed In the field of highway intelligent
Realize off-line monitoring and analysis of km for high-speed and surrounding roads
occupancy rate and transformation and construction the
expressway traffic flow speed occupancy rate based on the collected historical traffic
congestion mileage of the simulation analysis system based on
and congestion mileage through the initial flow data and combined with the current
expressway through the traffic flow characteristics can be
construction by integrating multi-source data such mainstream macro and micro traffic
Traffic obtained (three-month) effectively combined with high-speed
as expressway RSU data toll station data and road simulation software and make the off-line
Simulation expressway traffic data. monitoring information release
condition information. Realize the analysis and quantitative evaluation and analysis of
Platform Build a traffic simulation guidance traffic management and other
backtracking of high-speed traffic flow sources common emergency traffic organization
model of 15.7 km for systems and it has become an important
customer groups customer composition traffic schemes so as to provide quantitative
Guangzhou-Foshan technology for the Company's
flow characteristics and traffic flow characteristics decision-making basis for the feasibility
Expressway. The software high-speed intelligent transformation
of key holidays. analysis of relevant traffic organization
development and copyright business.management and guidance measures.application has been
completed.Play an important role in improving the
coordination and management efficiency of
Build a large-screen visual display system to The multi-angle information display of
All functions of the project expressway resources speeding up the
realize the integrated display of traffic status expressway information through big
Big Data have been developed handling of accidents and reducing traffic
visual perception intelligent flow control and data projection screen is beneficial to the
Projection deployed debugged and delays and economic losses and casualties
other applications. Have the ability of promotion of the Company's expressway
applied. caused by traffic accidents. Improve the
macro-monitoring all data of expressway. information integration business.management and control of road traffic and
the service level of the owner overall.
212021 Annual Report
Name of
Expected impact on the future
main R&D Project purpose Project progress Goal to be achieved
development of the Company
project
With big data as the core the smart party building
cloud platform has simultaneously developed PC Grass-roots party members can make full
portal website WeChat official account party use of fragmented time through mobile
building portal management backend party phone terminal to communicate and
Centered on the in-depth exploration
building big data and management cloud platform discuss through the study section anytime
and research on the smart party building
providing the group and grass-roots party and anywhere which realizes the
Smart Party All functions of the project cloud platform with the Internet + party
organizations with an integrated management breakthrough of the learning and education
Building have been developed integrated management solution which
platform for internet plus party building which form of party building "from traditional to
Cloud deployed debugged and integrates the publicity education
integrates five major businesses namely party modern from closed to open from entity
Platform applied. service management and supervision
building publicity party members' learning and to virtual". Meanwhile the traditional
and thus having high construction
education party building activities party affairs tedious daily management work is
necessity and market demand.management and data supervision and realizes simplified and integrated the party work
full coverage of party affairs business and flow is optimized and the efficiency and
interconnection among grass-roots party quality of party work are improved.organizations.
222021 Annual Report
Company's research and development personnel situation
2021 2020 Increase /decrease
Number of Research and Development persons (persons) 12 2 500.00%
Proportion of Research and Development persons 0.40% 0.07% 0.33%
Academic structure of R&D personnel —— —— ——
Bachelor 11 2 450.00%
Master 1
Age composition of R&D personnel —— —— ——
Under 30 years old 1
30-40 years old 9
Over 40 years old 2 2 0.00%
The Company's R & D investment situation
Increase
20212020
/decrease
Amount of Research and Development Investment (In RMB) 13974899.53 404303.70 3356.54%
Proportion of Research and Development Investment of Operation Revenue 0.26% 0.01% 0.25%
Amount of Research and Development Investment Capitalization (In RMB) 703960.80 0.00
Proportion of Capitalization Research and Development Investment of Research
5.04%0.00%5.04%
and Development Investment
Reasons and influence of significant changes in R&D personnel composition of the Company
□ Applicable √Not applicable
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
√ Applicable □ Not applicable
In 2021 the R&D investment has been increased and new R&D projects have been added such as
"Research on Bridge Safety Monitoring and Application Based on Beidou System" "Application of Monitoring
System for Operational Safety Cluster of Jiujiang Bridge in Foshan-Kaiping Expressway Expansion"
"All-weather Intelligent Monitoring and R&D Project for Key Road Sections of Foshan-Kaiping Expressway"
"Research on Traffic Guidance of Large Flow in 2021" "Traffic Simulation Platform" "Big Data Projection" and
"Smart Party Building Cloud Platform".Reasons for the drastic change of capitalization rate of R&D investment and its rationality explanation
√ Applicable □ Not applicable
In 2021 the R&D investment has been increased and new R&D projects have been added such as
"Research on Bridge Safety Monitoring and Application Based on Beidou System" "Application of Monitoring
System for Operational Safety Cluster of Jiujiang Bridge in Foshan-Kaiping Expressway Expansion"
"All-weather Intelligent Monitoring and R&D Project for Key Road Sections of Foshan-Kaiping Expressway"
"Research on Traffic Guidance of Large Flow in 2021" "Traffic Simulation Platform" "Big Data Projection" and
"Smart Party Building Cloud Platform".
232021 Annual Report
5.Cash Flow
In RMB
Items 2021 2020 Increase/Decrease(%)
Subtotal of cash inflow received from operation
5574328005.114051493610.0837.59%
activities
Subtotal of cash outflow received from operation
1904583283.951415306369.0334.57%
activities
Net cash flow arising from operating activities 3669744721.16 2636187241.05 39.21%
Subtotal of cash inflow received from investing
224528598.74372548657.83-39.73%
activities
Subtotal of cash outflow for investment activities 648313936.74 884922836.28 -26.74%
Net cash flow arising from investment activities -423785338.00 -512374178.45 -17.29%
Subtotal cash inflow received from financing activities 2265075195.50 2258963500.00 0.27%
Subtotal cash outflow for financing activities 5401656857.26 4591305613.77 17.65%
Net cash flow arising from financing activities -3136581661.76 -2332342113.77 34.48%
Net increase in cash and cash equivalents 109006386.66 -206800360.26 152.71%
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
Due to the outbreak of the COVID-19 in 2020 the national highway toll revenue will be exempted. In 2021
the number of days for companies to charge on various road sections increases compared with the same period of
the previous year the toll revenue increases and the cash inflow from operating activities increases. The increase
of profits leads to the increase of taxes and fees and the increase of cash outflow from operating activities.Reasons of major difference between the cash flow of operation activity in report period and net profit of the
Company
√Applicable □ Not applicable
In RMB
I. Adjusting net profit to cash flow from operating activities 2021
Net profit 2426784700.28
Add：Credit loss provision 1935337.47
Impairment loss provision of assets 2889394.16
Depreciation of fixed assets oil and gas assets and consumable biological assets 1229561027.39
Depreciation of the use right assets 9914956.52
Amortization of intangible assets 36587254.42
Amortization of Long-term deferred expenses 350625.00
Loss on disposal of fixed assets intangible assets and other long-term deferred assets -3017370.44
Fixed assets scrap loss 381538.83
242021 Annual Report
I. Adjusting net profit to cash flow from operating activities 2021
Financial cost 283024964.67
Loss on investment -277061254.36
Decrease of deferred income tax assets 105511533.12
Increased of deferred income tax liabilities -71180773.10
Decrease of inventories -586318.60
Decease of operating receivables 8323698.17
Increased of operating Payable -83674592.37
Net cash flows arising from operating activities 3669744721.16
V.Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Proportion in Sustainable (yes or
Amount Explanation of cause
total profit no)
Investment It is due to the operation accumulation of
277061254.36 8.76% Sustainable
Income participant companies
Fokai Company accrued impairment reserve
Asset impairment -2889394.16 -0.09% Not sustainable
for fixed assets
Non-operating Mainly insurance claims road property
17975495.18 0.57% Not sustainable
income claims and Demolition compensation income
Non-operating Mainly road property repair expenses and
22483385.64 0.71% Not sustainable
expenses Loss of non-current assets
Income from Mainly the gains from fixed asset disposal of
3017370.44 0.10% Not sustainable
asset disposal East Guangzhou-Zhuhai Company
Credit
-1935337.47 -0.06% Provision for impairment of other receivables Not sustainable
impairment loss
252021 Annual Report
VI.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2021 End of 2020 Notes to
Proportion
Proportion in the
Proportion in the increase/d
Amount Amount the total significant
total assets(%) ecrease
assets(%) change
Monetary fund 2956404390.55 15.66% 2847398003.89 14.40% 1.26%
Accounts
159053399.870.84%168907517.560.85%-0.01%
receivable
Contract assets 5286462.45 0.03% 5452813.90 0.03% 0.00%
Inventories 640079.66 0.00% 53761.06 0.00% 0.00%
Investment real
2889263.410.02%3110381.890.02%0.00%
estate
Long-term
equity 2627130681.24 13.92% 2382927355.64 12.05% 1.87%
investment
Fixed assets 10639272192.02 56.36% 11540075929.69 58.37% -2.01%
Construction in
351130455.061.86%340611095.471.72%0.14%
process
Use right assets 14100325.01 0.07% 23154055.78 0.12% -0.05%
Shore-term
0.000.00%200192500.001.01%-1.01%
loans
Contract
22000.000.00%309734.510.00%0.00%
liabilities
Long-term
4572621200.0024.22%4977438800.0025.18%-0.96%
borrowing
Lease liabilities 2773459.76 0.01% 12245214.89 0.06% -0.05%
Overseas assets account for a relatively high proportion.□ Applicable √ Not applicable
262021 Annual Report
2.Asset and Liabilities Measured by Fair Value
√Applicable □ Not applicable
Impairme Purchas Sold
Gain/Loss on
Cumulative fair nt ed amount Othe
fair value
value change provision amount in the r
Items Opening amount change in the Closing amount
recorded into s in the in the reporti chan
reporting
equity reporting reportin ng ges
period
period g period period
Financial assets
4.Other equity
instrument 1737015528.29 263485537.28 1577175826.05
investment
Subtotal of financial
1737015528.29263485537.281577175826.05
assets
Total of the above 1737015528.29 263485537.28 1577175826.05
Financial liabilities 0.00 0.00 0.00
Other change
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.VII. Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2021(Yuan) Investment Amount in 2020(Yuan) Change rate
134650000.002703460018.24-95.02%
272021 Annual Report
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □Not applicable
In RMB
Whe
Gain or
ther
Name of Capi Less or
Main Inves Share Prod Progress up to to
the Investment tal Investment Anticip the
Busine tment Propor Partner uct Balance Sheet Invol Date of Disclosure Disclosure Index
Company Amount Sour Horizon ated Current
ss Way tion % Type Date ve in
Invested ce Income Investme
Law
nt
suit
Xinyue Announcement of
On the basis of
Guangdon (Guangzhou) Resolutions of the 20th
Incre the term of Limit
g Investment Co. (Provisional) Meeting
Expres ase 15.00 Self operation ed
Jiangzhong 133650000.00 Ltd. Guangdong Completed No July 31 2021 of the Ninth Board of
sway capit % fund approved by Com
Expresswa Highway Directors
al the pany
y Co. Ltd. Construc tion Co. Related transaction
government
Ltd. Announcement
Total -- -- 133650000.00 -- -- -- -- -- -- 0.00 0.00 -- -- --
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
282021 Annual Report
Purchas
Mode of Sale Book value
Book value e
Stock accounti Changes in Cumulative fair amount Gain/loss of the balance at the Accoun Sourc
Security Security Initial balance at the amount
Abbreviat ng fair value of value changes in in the reporting end of the ting es of
category code investment cost beginning of the in the
ion: measure the this period equity this period reporting items funds
reporting period this
ment period period
period
Other
equity
Domestic and
Everbrigh instrum
foreign 601818 517560876.80 FVM 938667226.56 0.00 263485537.28 0.00 0.00 49403538.24 781046414.08 Self
t Bank ent
stocks
investm
ent
Total 517560876.80 -- 938667226.56 0.00 263485537.28 0.00 0.00 49403538.24 781046414.08 -- --
Disclosure Date of Announcement on
Securities Investment Approved by the July 222009
Board of Directors
Disclosure Date of Announcement on
Securities Investment Approved by the August 72009
Shareholders Meeting(If any)
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
292021 Annual Report
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.VIII. 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
302021 Annual Report
IX.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 Registered
Company Name Leading products and services Total assets Net assets Operating Income Operating profit Net Profit
type capital
Operating Guangfo Expressway Co.Guangfo RMB 200
Subsidiary Ltd.(starts from Hengsha Guangzhou ends in 557444986.51 525258828.06 452189259.01 285008760.76 216784938.57
Expressway million
Xiebian Foshan. Total length 15.7 kilometers
Jingzhu The operation and management of Guangzhu
Expressway Expressway and provision of supporting RMB 580
Subsidiary 2245637507.19 1162701542.28 1173205770.48 690615701.91 510059420.32
Guangzhu services including fueling salvage and supply million
Section Co. Ltd. of parts and components
Investment in and construction of Guanghui
Expressway Co. Ltd. and supporting facilities
Guangdong the toll collection and maintenance
Guanghui Sharing management of Guanghui Expressway The RMB 2.352
4307118539.253911349143.602153255526.581492003731.611111564548.10
Expressway Co. company Guanghui Expressway's supporting gas station million
Ltd. salvation vehicle maintenance vehicle
transport catering warehousing investment
and development
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
Particulars about the Mutual holding companies
1. Guangfo Expressway Co. Ltd. (the Company holds 75% equity) builds and operates Guangfo Expressway and its operation and management includes road
maintenance toll collection maintenance of traffic facilities such as signs and markings and vehicle rescue. The net profit of the current period increased by RMB
312021 Annual Report
61.7527 million year on year or 39.83%. The main reason for the increase was that the toll exemption policy for the COVID-19 epidemic in 2020. There is no such
impact in this period with increase in toll days toll income and operating income operating profit and year-on-year increase in net profit.
2. Jingzhu Expressway Guangzhu Section Co. Ltd. (the company holds 75% equity) operates Guangzhou-Zhuhai Expressway and provides the supporting
refueling rescue and spare parts supply services of expressway. The net profit of the current period increased by RMB 208.3206 million year-on-year or 69.04%.The main reason for the decrease was that the toll revenue decreased due to the toll-free policy of COVID-19 epidemic. There is no such impact in this period with
increase in toll days toll income and operating income operating profit and year-on-year increase in net profit.
3. Guangdong Guanghui Expressway Co. Ltd. (the company holds 51% equity) invests in and builds Guanghui Expressway and supporting facilities; Toll collection
and maintenance management of Guanghui Expressway; Investment and development of gas stations rescue automobile maintenance automobile transportation
catering and warehousing for Guanghui Expressway. The net profit of the current period increased by RMB 331.2595 million year-on-year or 42.45%. The main
reason for the decrease was that the toll revenue decreased due to the toll-free policy of COVID-19 epidemic. There is no such impact in this period with increase in
toll days toll income and operating income operating profit and year-on-year increase in net profit.
322021 Annual Report
X. Structured subject situation controlled by the company
□ Applicable √ Not applicable
XI.Prospect for future development of the Company
In 2022 the Company will continue to strengthen its confidence in reform and development constantly strengthen its strategic thinking and strive to improve
its corporate governance and development capabilities promote the transformation and upgrading of enterprises enhance its anti-risk ability and lay a solid
foundation for the steady development of enterprises according to the world-class management and three-year action of state-owned enterprise reform. The overall
goal of 2022 is to achieve an operating revenue of 5.011 billion yuan and control the operating cost within 1.878 billion yuan.
1. Implement and deepen the task of state-owned enterprise reform
The Company will continue to implement and deepen the state-owned enterprise reform strive to improve the level of independent operation and accelerate the
modernization and high-quality development of corporate governance capacity.
2. Consolidate and expand the main business of expressway
In 2022 the Company will continue to consolidate and expand the main business of expressway and continue to study the M&A of high-quality projects;
consolidate the investment decision-making work of existing reconstruction and expansion projects fully grasp the historical opportunity of reconstruction and
expansion of East Guangzhou-Zhuhai Guangzhou-Huizhou and Guangdong-Zhaoqing expressways and persist in cooperating with the preliminary research related
work of the reconstruction and expansion projects of the sections participated and held by the Company.
3. Well ensure the investment in non-main business of expressway and provide new profit growth points
The Company fully utilizes the market-oriented investment platform of Yuegao Capital expands the equity investment business and increases the new profit
growth point of the Company's expressway main business investment.
4. Accelerate the revitalization of land resources along the expressway
Continue to intensify the development of land resources along the expressway optimize the land development plan in an all-round way focus on economic
benefits continue to revitalize plots such as Xinjitian Chenshan and Shatou so as to maximize comprehensive benefits.XII. List of the received researches visits and interviews
√ Applicable □Not applicable
332021 Annual Report
Place of Way of Types of Main contents discussed and information
Reception time Visitors received Basic index
reception reception visitors provided
Zheshang Securities telephone research meeting：Zheshang Securities Kuang
1. The main content of research:1. the daily
Peiqin; Zheshang Securities Feng Shiqi; Huaxia Fund Liu Peiyi;
operation; 2. the company's financial data
Meeting China Merchants Fund Yao Shuang; Invesco Great Wall He Jinyang; Springs
Organiz analysis;3. development strategy; 4. analysis
March 262021 Room of the By Phone Capital Lin Shenglan; Starock Investment Hong Mei; Orient Guo Zhe; www.cninfo.com.cn
ation on the industry. 2.Primary data investigation:
Company Huatai Securities Lin Xiaying; Guotai Junan Secutities Yin Jiaqi; Haitong
Public information company regularly
Securities Luo Yuejiang; Changjiang Securities Zhang Yibo; Changjiang
reports
Securities Feng Qibin; Huaxi Securities Li Chengpeng.Huatai Securities Telephone Research Meeting: Huatai Securities Shen 1. The main content of research:1. the daily
Xiaofeng Lin Xiaying; Zheshang Securities Kuang Peiqin; Zheshang operation; 2. the company's financial data
Meeting
Organiz Securities Feng Shiqi; Guotai Junan Yue Xin; Guotai Junan Zhang Jingwen; analysis;3. development strategy; 4. analysis
August 272021 Room of the By Phone www.cninfo.com.cn
ation Guotai Junan Zhang Zhekai; Shanyuan Investment Tang Cong; on the industry. 2.Primary data investigation:
Company
JP Morgan Asset Management Vivian Tao；Value Partners Limited Public information company regularly
Norman Ho. reports
Industrial Securities Telephone Research Meeting：Industrial Securities Wang 1. The main content of research:1. the daily
Chunhuan; Dongwu Securities Wang Yingze; Bank of China Investment operation; 2. the company's financial data
Meeting
Organiz Management Co. Ltd. Shen Yuchen; Sinosafe Assets Zhang Mingzhao; analysis;3. development strategy; 4. analysis
September 82021 Room of the By Phone www.cninfo.com.cn
ation Jiashi Fund Liu Qian; Minsheng Trust Fu Feng; Hongkang Ziwei Assets on the industry. 2.Primary data investigation:
Company
Management Co. Ltd. Wu Xiongwei; Huatai Li Yanguan; Dacheng Fund Fu Public information company regularly
Rui; Dinghui Investment Huang Yanjie. reports
1. The main content of research:1. the daily
operation; 2. the company's financial data
Meeting CICC Telephone Research Meeting：CICC Zhang Weinjie Luo Xinyu Gu
Organiz analysis;3. development strategy; 4. analysis
November 12021 Room of the By Phone Yuanfan; Zhejiang Shanyuan Tang Cong; Fujian Haoshan Assets Hong www.cninfo.com.cn
ation on the industry. 2.Primary data investigation:
Company Jiarong; Guotai Junan Zhang Zhekai Shan Deli.Public information company regularly
reports
342021 Annual Report
IV. Corporate Governance
I. General situation
The Company strictly followed the requirement of laws and regulations in
Law>< Code of Corporate Governance for Listed Companies in China>
improving corporate governance structures improving normative operation level. Company had stipulated rules
such as
board of directors working guide of general manager etc. and internal control system basically covering all
operating management such as company financial management investment management information disclosure
related transaction external guarantee fund raising etc. All rules are well implemented.In the report period strictly following the relevant provisions of “Company Law”and “Regulations” the
shareholder’s meeting of our bank effectively performed the functions. The board of directors is to be responsible
for the shareholder’s meeting to take the ultimate responsibility for the bank’s operation and management and to
convene a meeting as well as performing the function and power according to legal procedure. In line with the
attitude which is responsible for all shareholders and keeping in close contact and communication with the board
of directors and the management the board of supervisors carries out the assessment work on duty exercising for
the board of directors and the board of supervisors effectively performing functions and obligations of
supervision.Does there exist any difference in compliance with the corporate governance the PRC Company Law and the
relevant provisions of CSRC
□ Yes √No
There exist no difference in compliance with the corporate governance the PRC Company Law and the relevant
provisions of CSRC.II. Independence and Completeness in business personnel assets organization and finance
1. Independent business
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai ExpresswayJingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangzhou
Guanghui Expressway Co. Ltd.. Guangdong Jiangzhong Expressway Co.Ltd. Zhaoqing Yuezhao Expressway
Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Technology
Petty Loan Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd Hunan Lianzhi
Technology Co. Ltd.and SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.The Company has outstanding main operation independent and complete business and the ability of independent
operation. All business decisions of the Company were made independently being completely separated from the
shareholder with actual control. Related transactions were carried out in light of the principle of fair transaction
which did not harm the interests of the Company and other shareholders of the Company. The content of related
transactions was fully timely and accurately disclosed which did not have negative influence on the Company.
352021 Annual Report
2. Complete assets
The relationship of the Company's property right is clear. The assets injected by shareholders in the Company
are independent and complete and have clear property right. All capital was paid up and relevant formalities of
property right change were settled.
3. Independent personnel
As for personnel relationship the general manager deputy general managers the secretary to the board of
directors and financial controller of the Company were full-time employees and received salary from the
Company who did not concurrently hold positions at the parent company.All directors and supervisors of the Company were elected through legal procedure. The general manager
deputy general managers chief accountant chief economic engineer and chief engineer were directly appointed
by the board of directors. Other managerial personnel of all levels were directly appointed by the general manager.The Company owns independent power of personnel appointment and removal.
4. Independent finance
The Company including subsidiaries established independent accounting department，independent accountingsystem and regulations on financial management.The Company independently opened bank account and did not deposit funds in the accounts of the finance
company or settlement center of the majority shareholder. The Company independently paid tax. The Company's
financial decisions were independently made. The majority shareholder did not interfere with the use of funds by
listed companies.
5. Independent organization
The board of directors the supervisory committee and other internal organs of the Company operated
independently. Its organs are complete and independent.III. Horizontal Competitions
□ Applicable √ Not applicable
362021 Annual Report
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Type of Meeting Disclosure
Sessions participation Disclosure index
meeting Date date
ratio
Provisional 1. The meeting examined and adopted the Proposal on Signing the Supplementary Agreement to the Financial Services
The First provisional
shareholders’ February February Agreement with Guangdong Communications Group Finance Co. Ltd.2. The meeting examined and adopted the Proposal on
shareholders’ General 65.66%
General 32021 42021 Requesting the Increase of Audit Fees for Annual Financial Reports.3. The meeting examined and adopted the Proposal
meeting of 2021
meeting regarding the election of Mr. Lu Ming as director of the ninth board of directors of the Company.
1.The meeting examined and adopted the Proposal Concerning Final Accounting Report for 2020.2.The meeting examined and
adopted the Proposal Concerning Preplan for Profit Distribution for 2020 . 1. It’s planned to draw RMB 93232912.82 that is
based on 10% of the net profit realized by the parent company for the statutory surplus reserve.2. RMB 608424582.67 is to be
allocated as the fund for dividend distribution for 2020. with the total shares at the end of 2020 i.e. 2090806126 shares as the
base cash dividend of RMB 2.91 (including tax) is to be distributed for every 10 shares .The remaining undistributed profits are
Annual to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders holding B share
2020 Shareholders’ Shareholders’ June June and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate quoted by People’s Bank of China
65.63%
general meeting General 222021 232021 on the first working day after 2020 annual shareholders’ general meeting makes resolution on dividend distribution.3. The
Meeting meeting examined and adopted the Proposal Concerning Overall budget report of the Company for 2021.4. The meeting
examined and adopted the Work Report of the Board of Directors for 2020.5. The meeting examined and adopted the Work
Report of the supervisory Committee for 2020.6. The meeting examined and adopted Annual Report for 2020 and its
summary.7. The meeting examined and adopted the Proposal for Hiring the 2021 Annual Financial Report Audit Agency.8. The
meeting examined and adopted the Proposal for Hiring the 2021 Internal Control Audit Institution.9. The meeting examined and
adopted the Proposal on the election of Mr.Ren Hua as the director of the ninth board of directors of the company.The Second Provisional
The meeting examined and adopted the Proposal on increasing capital to Guangdong Jiangzhong Expressway Co. Ltd. to
provisional shareholders’ August August
40.27% participate in the investment in the
shareholders’ General General 162021 172021
shenzhen-Cenxi Expressway Zhongshan Xinlong to Jiangmen Longwan Section Reconstruction and Expansion Project.meeting of 2021 meeting
372021 Annual Report
Provisional
The Third provisional Novemb
shareholders’ November
shareholders’ General 65.86% er The meeting examined and adopted the Proposal on Amending Part of the Articles of Association of the Company.General 252021
meeting of 2021 242021
meeting
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
382021 Annual Report
V. Information about Directors Supervisors and Senior Executives
1.Basic situation
Number
The Number
of Reasons
Shares Number of number of of shares
Other shares for
held at Stock restricted shares held reduced
Office Starting date of Expiry date of change held at increase
Name Positions Sex Age the optio shares in the in the
status tenure tenure s(share the end or
year-begi ns granted(share current current
a) of the decrease
n(share) s) period(shar period(sh
period(s of shares
es) ares)
hares)
Zheng
Board Chairman In office Male 52 January 42017 September 202022
Renfa
Director
Wang
General In office Male 57 October 192015 September 202022 135100 135100
Chunhua
Manager
Director Chief December
Lu Ming In office Male 43 September 202022
accountant 252020
Director Deputy
Femal
Zuo Jiang General In office 49 October 192015 September 202022
e
Manager
Chen Min Director In office Male 58 July 192017 September 202022
Zeng December
Director In office Male 51 September 202022
Zhijun 42017
You Director In office Male 54 July 212020 September 202022
392021 Annual Report
Number
The Number
of Reasons
Shares Number of number of of shares
Other shares for
held at Stock restricted shares held reduced
Office Starting date of Expiry date of change held at increase
Name Positions Sex Age the optio shares in the in the
status tenure tenure s(share the end or
year-begi ns granted(share current current
a) of the decrease
n(share) s) period(shar period(sh
period(s of shares
es) ares)
hares)
Xiaocong
Ren Hua Director In office Male 46 June 222021 September 202022
Femal November
Wu Hao Director In office 49 September 202022
e 22020
Huang
Director In office Male 46 July 212016 September 202022
Hai
Gu Independent
In office Male 56 July 212016 September 202022
Naikang director
Bao Independent
In office Male 43 July 212016 September 202022
Fangzhou director
Zhang Independent December
In office Male 56 September 202022
Hua director 42017
Liu Independent December
In office Male 56 September 202022
Zhonghua director 42017
Zeng Independent Femal
In office 52 May 202019 September 202022
Xiaoqing director e
Jiang Chairman of the
Changwe Supervisory In office Male 54 May 202019 September 202022
n Committee
402021 Annual Report
Number
The Number
of Reasons
Shares Number of number of of shares
Other shares for
held at Stock restricted shares held reduced
Office Starting date of Expiry date of change held at increase
Name Positions Sex Age the optio shares in the in the
status tenure tenure s(share the end or
year-begi ns granted(share current current
a) of the decrease
n(share) s) period(shar period(sh
period(s of shares
es) ares)
hares)
Femal September
Ke Lin Supervisor In office 52 September 202022
e 152017
Zhou September
Supervisor In office Male 41 September 202022
Yisan 92019
Deng December
Supervisor In office Male 46 September 202022
Yunfeng 232021
Cheng Deputy General
In office Male 47 August 282017 September 202022
Rui Manager
Luo Deputy General December
In office Male 48 September 202022
Baoguo Manager 252020
Femal
He Bing legal counsel In office 54 July 232012 September 202022
e
Yang Secretary to the
In office Male 52 August 282017 September 202022
Hanming Board
Zhuo December
Director Dimission Male 50 February 242021
Weiheng 42017
Li Femal
Supervisor Dimission 50 July 212016 December 232021
Haihong e
Feng Supervisor Dimission Male 57 September December 232021
412021 Annual Report
Number
The Number
of Reasons
Shares Number of number of of shares
Other shares for
held at Stock restricted shares held reduced
Office Starting date of Expiry date of change held at increase
Name Positions Sex Age the optio shares in the in the
status tenure tenure s(share the end or
year-begi ns granted(share current current
a) of the decrease
n(share) s) period(shar period(sh
period(s of shares
es) ares)
hares)
Yuan 92019
Total -- -- -- -- -- -- 135100 0 0 0 0 0 135100 --
422021 Annual Report
During the reporting period whether there is dismissal of directors and supervisors and decruitment of senior
managers
√ Yes □No
1. Mr. Zhuo Weiheng director resigned from the Board of Directors of the Company on February 24 2021
due to job transfer. After his resignation Mr. Zhuo Weiheng did not hold any other positions in the Company.
2. Ms. Li Haihong supervisor and Mr. Feng Yuan the employee supervisor resigned from the Supervisory
Board of the Company on December 23 2021 due to job transfer. After resignation Ms. Li Haihong and Mr. Feng
Yuan did not hold other positions in the Company.II.Changes of directors supervisors and senior executives
√ Applicable □ Not applicable
Name Positions Types Date Reason
Zhuo Weiheng Director Dimission February 242021 Job change
Li Haihong Supervisor Dimission December 232021 Job change
Feng Yuan Supervisor Dimission December 232021 Job change
III.Posts holding
Professional backgrounds major work experience and current duties in the Company of the incumbent directors
supervisors and senior management:
Mr. Zheng Renfa，He served as Chairman Master Degree Senior economic engineer. Since December 2005，Heserved as Deputy Minister of Investment Management Department of Guangdong Communication Group，SinceApril 21 2014，He served as director Since August 15 2016 the implementation of the duties of the Board of
Directors and the legal representative of the duties. Since January 4 2017 he was the chairman of the board of
directors of the Company.Mr. Wang Chunhua He served as Director and General Manager of the Company Master Degree senior engineer
and senior economic engineer Since September 2006 he served as Deputy General Manager of the
Company.From March 2013 to October 2015 He served as director and Deputy General Manager of the Company
Since October 2015 He served as Director and General director of the Company and hold a concurrent post of
vice chairman of Shenzhen Huiyan Expressway Co. Ltd.Lu Ming is the director of the Company chief accountant senior accountant with the graduate
degreeandMBA. From July 1999 to February 2001 he served as the accountant of Jingzhu Expressway Guangzhu
Section Co. Ltd; from February 2001 to November 2003 he served as the accountant of the Zhongjiang
Expressway Project Preparation Office and from November 2003 to September 2006 he served as Deputy
Manager of the Accounting and Finance Department of the West Ring Section (South Section) of the Pearl River
Delta Ring Expressway. From September 2006 to February 2008 he served as the accountant of the Financial
Audit Department of Guangdong Provincial Highway Construction Co. Ltd. From February 2008 to March 2009
he successively served as the deputy manager and manager of the Finance Department of the Southern Branch of
the West Second Ring Road of Guangdong Provincial Highway Construction Co. Ltd;from March 2009 to
December 2020 he served as the manager personnel deputy supervisor of business and business supervisor of the
Financial Management Department of Guangdong Provincial Communications Group Co. Ltd. During the period
432021 Annual Report
from December 2018 to December 2019 he served as the first secretary of the Party branch of the Yinghuai
Management Office of the Longhuai Expressway Management Center of Nanyue Transportation of Guangdong
Province. He has been the chief accountant of the Company since December 25 2020 and he has served as the
director of the Company since February 3 2021.He also serves as the vice Chairman of Gangzhou Kangda
Expressway Co. Ltd. a joint stock company of the Comapny and Director of Guangdong Yueke Technology
Petty Loan Co. Ltd.Ms. Zuo Jiang Deputy General Manager of the Company Master of Economics Senior Economist Qualified
as Legal Adviser of the Enterprise Secretary of the Board of Directors. He has been working in the Company
since 1994. He has been the Minister of Securities Affairs of the Company since 1999. He has been the Secretary
of the Board of Directors and Director of Securities Affairs Department since March 2006. From October 2015 to
July 2016 he was the Deputy General Manager and Secretary of the Board of Directors And Minister of
Securities Affairs. Since October 2015 he has been the Deputy General Manager of the Company and hold a
concurrent post of Director of Yueke Technology Petty Loan Co. Ltd. and director of Guoyuan Securities Co.Ltd.Mr. Chin Min He serves as Director undergraduate degree senior economist corporate legal adviser cost
engineer. From September 2001 to August 2009 He served as Senior economist Director and General Manager
of Guangdong Jingtong Highway Engineering Construction Group Co. Ltd.From August 2009 to April 2011 He
served as Deputy General Manager of Guangdong Nanyue Logistics Co. Ltd.Form April 2011 to September
2021 He served as Duputy Minister of Legal Affairs of Guangdong Communications Group Co. Ltd. Since
September 2021 He served as Minister of Legal Affairs of Guangdong Communications Group Co. Ltd.Since
July 19 2017 He served as Director of the Company.Mr. Zeng Zhijun economist is a director of the Company with master degree. Since June 2010 he has served as
the deputy chief economist of Guangdong Provincial Expressway Co. Ltd. From January 2015 to September 2015
he served as Minister of Investment Planning Department of Guangdong Provincial Expressway Co. Ltd; since
September 2015 he has served as Minister of Legal Affairs Department of Guangdong Provincial Expressway Co.Ltd. ，Since September 2020 He serves as Minister of personnel resource department，Since December 4 2017he serves as Director of the Company.You Xiaocong senior accountantis the director of the Company with bachelor degree. From August 1990 to
May 2008 he successively served as the deputy manager and manager of the finance department of Guangfa
Transportation Co. Ltd. and the manager director and chief accountant of the finance department of Macau
Qi’guan Che’lu Co. Ltd. From May 2008 to January 2015 he served as the assigned chairman of the board of
supervisors ofGuangdong Provincial Communications Group Co. Ltd. From January 2015 to May 2015 he
served as the director and chief accountant of Guangdong Provincial Highway Construction Co. Ltd. and since
May 2015 he has served as the director chief accountant and member of the party committee of Guangdong
Provincial Highway Construction Co. Ltd. He has served as director of the Company since November 2 2020.Mr. Ren Hua director of the Company master degree engineer. From June 1998 to August 2001 he was a
teacher in the Department of Civil Engineering West Branch of South China Construction Institute. From
September 2001 to June 2004 he studied in bridge and tunnel engineering in South China University of
Technology. He served as the supervisor and deputy manager of the Planning and Contract Department of
Guangdong West Coastal Expressway Zhuhai Section Co. Ltd. from July 2004 to October 2009 the supervisor of
the Investment and Operation Department and Deputy Director of the Legal Affairs Department of Guangdong
Highway Construction Co. Ltd. from October 2009 to September 2017 deputy chief economist and deputy
director of the Legal Affairs Department of Guangdong Highway Construction Co. Ltd. from September 2017 to
442021 Annual Report
April 2020 deputy chief economist and deputy director of the Legal Affairs Department and secretary of the party
branch of the Investment Management Department of Guangdong Highway Construction Co. Ltd. from April
2020 to December 2021 and general counsel deputy chief economist deputy director of Legal Affairs
Department and secretary of the Party branch of the Investment Management Department of Guangdong Highway
Construction Co. Ltd. since December 2021. He has served as the director of the Company since June 22 2021.Wu Hao (resigned from the director and member of the Audit Committee on December 21) is the director of
the Companywith bachelor degree. From September 1992 to October 2011 she successively served as a section
member and deputy section chief of the Finance Section of the Administration for Industry and Commerce of
Tongzi County Guizhou Province. From October 2011 to February 2012 he served as the section chief of the
Finance Section of the Huichuan District Administration for Industry and Commerce Zunyi City Guizhou
Province. From April 2013 to May 2020She successively served as deputy manager of the finance department
deputy manager of the investment business department and manager of the investment business department of
Shandong Expressway Investment Development Co. Ltd. She has served as the deputy general manager and
member of party committee of Shandong Expressway Investment Development Co. Ltdsince May 2020. From
November 2 2020 he has served as director of the Company.Mr. Huang Hai MBA joined the work in 1997. He had successively served as the business manager of the
financial department of Shenzhen Wofa Medical New Technology Development Co. Ltd. the manager of the
marketing department of Shantou Branch of Guangzhou Xingda Communication Co. Ltd the manager of the
securities department and securities affairs representative of Zhongshan Public Technology Co. Ltd. andDeputy
General Manager of the Securities Department of Poly Real Estate and Director of the Office of the Secretary of
the Board of Directorsof Poly Real Estate currently serving as Secretary of the Board and Director of the Office
of the Board of Directors of Poly Development Holding Group Co. Ltd. Chairman of Poly Property
Development Co. Ltd. Executive Director and General Manager of Tibet Yingyue Investment Management Co.Ltd. Since July 21 2016 he has served as director of the Company.Mr. Bao Fangzhou Independent director of the Company Master of Law. Shanghai Jin Tiancheng Law Firm
Senior Partner 2008 - 2014 Former Independent Director of New Nanyang Co. Ltd. Since 2013 he has been an
independent director of Hubei Wushi Pharmaceutical Co. Ltd. since June 2016 Power Co. Ltd. Independent
Director. From July 21 2016He is an independent director of the Company.Gu Naikang Independent directors and doctorate degree of the Company. Since June 2004 he has been a
professor and doctoral tutor of Finance and Investment Department of Zhongshan University School of
Management. He is currently an independent director of Guangxi Guitang (Group) Co. Ltd. an independent
director of Dongguan Yuqiu Electronics Co. Ltd. and an independent director of Guangzhou Zhujiang Industrial
Development Co. Ltd. From July 21 2016 he is an independent director of the Company.Mr. Liu Zhonghua professor of accounting is an independent director of the Company with master degree.In September 2005 he was transferred to the School of Management of Guangdong University of Foreign Studies
to teach. He is currently a professor at the School of Accounting of Guangdong University of Foreign Studies he
is a master tutor concurrently serves as member of Accounting Society of China executive member of China
Association of Foreign Trade and Economic Accounting vice chairman of Guangdong Province Management
Accounting Association executive member of Guangdong Provincial Accounting Association and member of
Guangdong Audit Society. Since December 4 2017 he is an independent director of the Company.Mr. Zhang Hua economist is an independent director of the Company with Master Degree. From May 2006
to May 2012 he served as deputy general manager and chief investment director of Guangzhou Yingzhi Caihua
Investment Co. Ltd. From June 2012 to September 2016 he served as the deputy general manager of Guangzhou
452021 Annual Report
De’rui Investment Co. Ltd and concurrently served as Deputy General Manager of Shenzhen Dongying Ruitong
Investment Management Partnership (Limited Partnership); since October 2016 he has served as general manager
of Shanghai Er Luo Investment Management Service Center (General Partnership). From November 2010 to
January 2017 he served as an independent director of Guangzhou Yu Yin Technology Co. Ltd. From December
2011 to September 2017 he served as an independent director of Guangdong Electric Power Development Co.
Ltd. In September 2017 he was an independent director of Zhuhai Taichuan Cloud Community Technology Co.Ltd. Since December 4 2017 he is an independent director of the Company.Ms. Zeng Xiaoqing an independent director of the Company with bachelor's master's and doctor's degrees
from Tongji University. Since 1993 she conducted training and study at Tsinghua University and German
Darmstadt University of Technology. From February 2000 to October 2002 she conducted post-doctoral research
and study in Tokyo Institute of Technology Japan. She began to work in Tongji University in 1993 served as
assistant director of Shanghai Municipal Government's Expo Science and Technology Promotion Center from
2005 to 2012 and served as vice-chairman and secretary-general of Shanghai Creative Studies Institute from 2012;
She is currently the director of Tongji University's Joint Experimental Center for Traffic Information Control
professor and doctoral supervisor of Tongji University's School of Transportation Engineering. From May 20
2019 she served as the independent director of the Company.
Mr. Jiang Changwen male is 52 years old master of management senior accountant senior economist.From July 1999 to November 2006 he worked in Guangshenzhu Expressway Co. Ltd. and served as the
supervisor deputy manager and manager of the accounting department. From November 2006 to January 2009 he
worked in the Jiangzhong Expressway Company and served as the finance department manager; since January
2009 he has worked in the Guangdong Provincial Transportation Group Co. Ltd and has served as a supervisor.
From May 202019 he is the assigned chairman of the supervisory board of Guangdong Communication Group
Co. Ltd.Ms.Ke Lin bachelor degree Bachelor of Science assistant researcher. She began to take a job in July 1991. She
had successively served as cadre of personnel department deputy head head of the personnel department
section chief rank cadre of discipline inspection and supervision department director of the commission for
discipline Inspection (deputy-director level). In November 2008 she was transferred to work in Provincial
Transportation Group successively served as member of party committee union chairman and discipline
inspection commission secretary. From January 2013 to August 2017 she has served as party committee member
discipline inspection commission secretary and chairman of the union in Yueyun Transportation. .Since September
15 2017 She served as supervisor of Board of supervisor of the Company.
Mr. Zhou Yisan supervisor of the Company postgraduate degree master of law enterprise legal consultant
with national legal professional qualification board secretary qualification and securities fund and futures
practitioner qualification. From February 2014 to April 2016 he was the deputy supervisor of the Legal Affairs
Department of Guangdong Transportation Group Co. Ltd. From April 2016 to September 2017 he was the deputy
head of the Investment Development Department and Legal Affairs Department of the Company and he has been
the head of Legal Affairs Department of the Company since September 2017. From September 9 2019 he served
as the employee supervisor of the 9th Supervisory Committee of the Company. He also serves as supervisor of
Guangdong Yueke Technology Petty Loan Co. Ltd.Mr. Deng Yunfeng supervisor of the Company bachelor degree MBA senior engineer. He served as Party
Secretary of Guangzhou-Foshan Expressway Co. Ltd. from February 2014 to July 2018; Minister of Party and
Mass Work Department of the Company from July 2018 to the present and also vice chairman of the trade union
of the Company and chairman of the trade union of its headquarters from March 2021 to the present. He has
served as the employee supervisor of the ninth board of supervisors of the Company since December 23 2021.
462021 Annual Report
Mr. Cheng RuiOn-job postgraduate master of business administration with a lawyer qualification. He began
to take a job in July 1997. He had successively served as development department staff deputy manager of
investment management department and manager of investment management department in Xinyue Co.Ltd
served as Deputy General Manager of Xinyue Company in August 2015 and served as deputy minister of
strategic development department from April 2016 to August 2017. Since August 2017 he served as Deputy
General Manager of the Company. During this period starting from May 2019 to August 2021 he was assigned as
the first secretary of the Party organization in Shanhu Village Jinhe Town Jiexi County Jieyang City.Mr. Luo Baoguo deputy general manager of the Company with graduate degree and master of engineering is
senior engineer. From July 1999 to December 2003 he successively served as the chief engineer of the L bid
project of the southern section of the Jingzhu Expressway of the Guangdong Provincial Highway Engineering
Construction Group Co. Ltd. the deputy manager and technical sponsor of the southern Jingzhu pavement project
Deputy Manager and Chief Engineer of the Pavement Project Department of the Jingzhu Southern Fogang Section
Manager of the Project Manager Department and Deputy Manager of the Second Branchof the Eighth Contract
Section of Henan Jiaozuo-Jincheng Expressway. From December 2003 to March 2007 he successively served as
the manager of the university town project the manager of the business contract department and the employee
supervisor of the Guangdong Jingtong Highway Engineering Construction Group Co. Ltd. From March 2007 to
July 2014 he served as Director of the Project Development Office and Director of the Investment Development
Department of Guangdong Expressway Development Co. Ltd. From August 2014 to July 2017 he served as the
director general manager and deputy party secretary of Guangdong Fokai Expressway Co. Ltd. From August
2017 to December 2020 he served as the general manager (person in charge) and deputy secretary of the Party
Committee of Fokai Branch of Guangdong Expressway Development Co. Ltd. From December 25 2020 he has
served as the deputy general manager of the Company. He concurrently serves as the chairman of Zhaoqing
Yuezhao Highway Co. Ltd.-the company's share-participating company and serves as the vice chairman of
Guangdong Jiangzhong Expressway Co. Ltd.Ms. He Bing general counsel master's degree in law enterprise legal adviser from August 2005 to July 2012
she served as Deputy chief economic engineer of the Company Since July 2012 she served as Chief legal adviser
of the Company.Mr. Yang Hanming he has been the Secretary of the Board， bachelor's degree senior economist corporatelegal adviser with the board secretary qualifications. Since March 2000 he has been successively served as
deputy minister of investment planning and minister of legal affairs in Guangdong Provincial Expressway
Development Co. Ltd. Since August 2014 he has been concurrently served as minister of investment and
development. Since August 2017 he has been the Secretary of the Board of the Company vice Chairman of
Ganzhou Gankang Expressway Co. Ltd. Director of Guangdong Jiangzhong Expressway Co. ltd. and supervisor
of Guangdong Yueke Technology Petty Loan Co. Ltd. Since September 2019 he served as Minister of Development
Dept of the Company. He also serves as the vice Chairman of Gangzhou Kangda Expressway Co. Ltd. a joint
stock company of the Company.Office taking in shareholder companies
√Applicable □Not applicable
472021 Annual Report
Does he /she
Names of Expiry receive
the Titles engaged in the Sharing date of office date of remuneration
Names of the shareholders
persons in shareholders term office or allowance
office term from the
shareholder
Guangdong Communication
Chen Min Minister of Legal Affairs. December 12014 Yes
Group
Chief accountant Party
You Guangdong Highway committee member and
January 142015 Yes
Xiaocong Construction Co. Ltd. Secretary of the board of
directors
General Legal Counsel Deputy
Chief Economist Deputy
Guangdong Highway Minister of the Legal Affairs
Ren Hua September 12017 Yes
Construction Co. Ltd. Department Party Branch
Secretary of the Investment
Management Department
Zeng Guangdong Provincial General Counsel Minister of
September 12015 Yes
Zhijun Freeway Co.Ltd. Human Resources
Jiang Guangdong Communication Dispatched chairman of the
January 12009 Yes
Changwen Group Co. Ltd. supervisory committee
482021 Annual Report
Offices taken in other organizations
√Applicable □Not applicable
Does
he/she
receive
Expiry
Name of the remunerati
Titles engaged in the Starting date of office date of
persons in Name of other organizations on or
other organizations term office
office allowance
term
from other
organizatio
n
Bao Lawyer Senior
Shanghai Allbright law firm January 12000 Yes
Fangzhou partner
Bao
Laurel Power Co. Ltd. Independent director June 12016 Yes
Fangzhou
Finance and Investment School of Professor doctoral
Gu Naikang January 12004 Yes
Business Sun YAT-SEN University supervisor
Mingyang Intelligent Energy Group
Gu Naikang Independent director July 12017 Yes
Co. Ltd.Gu Naikang Zhubo Design Co. Ltd. Independent director December 12019 Yes
Shenzhen Shinning Electronic Co.Gu Naikang Independent director December 112020 No
Ltd.Gu Naikang Youmi Technology Co. Ltd. Independent director May 182021 Yes
Shanghai Erro Investment
Zhang Hua Management Service General Manager October 12016 Yes
Centre(General partnership)
Zhuhai Taichuan Community
Zhang Hua Independent director September 12017 Yes
Technology Co. Ltd .Guangzhou Yuyin Technology Co.Zhang Hua Independent director November 12018 Yes
Ltd.Guangzhou Rural Commercial
Zhang Hua Independent director March 182021 Yes
Bank
Liu College of Accounting Guangdong Professor Master’s September 1
Yes
Zhonghua University of Foreign Studies supervisor 2005
Liu
Gelinmei Co. Ltd. Independent Director March 202019 Yes
Zhonghua
Liu Guangdong Shaogang Songshan
Independent Director June 252019 Yes
Zhonghua Co. Ltd.Liu Luxshare Preciaion Industry Co. Independent Director June 12021 Yes
492021 Annual Report
Zhonghua Ltd.Shandong Expressway Investment
Wu Hao Deputy GM May 292020 Yes
Development Co. Ltd.Poly Developments and Holdings Secretary to the
Huang Hai April 262012 Yes
Group Co. Ltd. Board
Poly Property Development Co.Huang Hai Board chairman April 222019 No
Ltd.Zeng Tongji University's School of Professor and
June 12007 Yes
Xiaoqing Transportation Engineering doctoral supervisor
Tongji University's Joint
Zeng
Experimental Center for Traffic Director June 302003 No
Xiaoqing
Information Control
Punishments to the current and leaving board directors supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors supervisors and senior executives
Decision-making procedures basis for determination and actual payment of the remuneration to directors
supervisors and senior executives
The remuneration of members of the Eighth board of directors and supervisory committee was examined and
determined at the second provisional shareholders’ general meeting in 2019.The remuneration of the senior
executives is determined by the assets operation responsibility system in that year.
1. The directors of the Company and the controlling shareholder of the Company and its related parties as
well as the directors of the Company shall not receive the remuneration of the directors.
2. Directors who have not held other positions in the Company and the controlling shareholder of the
Company and its related parties are remunerated by the directors of the Company and the standard is RMB 6000
(tax included) per person per month. In addition the expenses incurred by the independent directors at the board
of directors and the shareholders' general meeting and the expenses incurred in exercising their functions and
powers in accordance with the articles of association may be reimbursed in the company.Remuneration to directors supervisors and senior executives in the reporting period
502021 Annual Report
In RMB 10000
Total Whether to get
remuneration paid in the
Name Positions Sex Age Office status
received from company
the Company related party
Zheng Renfa Board Chairman Male 52 In Office 80.14 No
Wang Chunhua Director General Manager Male 57 In Office 77.27 No
Lu Ming Director Chief Accountant Male 43 In office 50.11 No
Director Deputy General
Zuo Jiang Female 49 In Office 66.76 No
Manager
Chen Min Director Male 58 In Office 0 Yes
Zeng Zhijun Director Male 51 In Office 0 Yes
You Xiaocong Director Male 54 In Office 0 Yes
Zhuo Weiheng Director Male 50 Dimission 0 Yes
Ren Hua Director Male 46 In Office 0 Yes
Wu Hao Director Female 49 In Office 0 Yes
Huang Hai Director Male 46 In Office 0 No
Gu Naikang Independent director Male 56 In Office 7.2 No
Bao Fangzhou Independent director Male 43 In Office 7.2 No
Zhang Hua Independent director Male 56 In Office 7.2 No
Liu Zhonghua Independent director Male 56 In Office 7.2 No
Zeng Xiaoqing Independent director Female 52 In Office 7.2 No
Jiang Chairman of the Supervisory
Male 55 In Office 0 Yes
Changwen Committee
Li Haihong Supervisor Female 50 Dimission 0 Yes
Ke Lin Supervisor Female 52 In Office 65.78 No
Feng Yuan Supervisor Male 57 Dimission 50.04 No
Zhou Yisan Supervisor Male 41 In office 54.72 No
Deng Yunfeng Supervisor Male 46 In Office 54.61 No
Cheng Rui Deputy General Manager Male 47 In office 67.93 No
Luo Baoguo Deputy General Manager Male 48 In Office 50.11 No
He Bing Chief legal adviser Female 54 In office 56.25 No
Yang Hanming Secretary to the Board Male 52 In Office 58.54 No
Total -- -- -- -- 768.26 --
512021 Annual Report
VI. Performance of directors' duties during the reporting period
1. Information of the board meetings during the reporting period
Convening Disclosur
Session Meeting resolution
date e date
The 15th 1. The meeting examined and adopted the Proposal on Signing the Supplementary Agreement to the Financial Services Agreement with Guangdong
(Provisional) January January Communications Group Finance Co. Ltd.2. The meeting examined and adopted the Proposal on Requesting the Increase of Audit Fees for Annual Financial
meeting of the ninth 182021 192021 Reports.3. The meeting examined and adopted the Proposal on the Capital Increase Project of Yuegao Capital Investment (Hengqin) Co. Ltd. 4. The meeting
Board of Directors examined and adopted the Proposal for Holding 2021 First Provisional Shareholders' General Meeting.
1. The meeting examined and adopted of the Proposal on Changes in Accounting Policies.2. The meeting examined and adopted the Proposal Concerning Provision
for impairment of assets.3. The meeting examined and adopted the Proposal Concerning Final Accounting Report for 2020.4. The meeting examined and adopted the
Proposal Concerning Preplan for Profit Distribution for 2020 .5. The meeting examined and adopted the Proposal Concerning Overall budget report of the Company
for 2021.6. The meeting examined and adopted the Work Report of the Board of Directors for 2020.7. The meeting examined and adopted the Business Report of the
General Manager for 2020.8. The meeting examined and adopted Annual Report for 2020 and its summary.9. The meeting examined and adopted the Proposal the
report on evaluation of the Company's internal control in 2020.10. The meeting examined and adopted the Proposal for Hiring the 2021 Annual Financial Report
The 16th
Audit Agency.11. The meeting examined and adopted the Proposal for Hiring the 2021 Internal Control Audit Institution.12. The meeting Examined and adopted of
(Provisional) March March
the Proposal on Confirming the Continuous Risk Assessment Report of Guangdong Communication Group Finance Co. Ltd.13. The meeting Examined and adopted
meeting of the ninth 252021 262021
of the Proposal on the Report on the Control of Debt Risk of 2020.14. The meeting Examined and adopted of the Proposal on the Report on the analysis of Debt
Board of Directors
Risk of 2020.15. The meeting examined and adopted the Proposal Concerning the Company Daily Associated Transactions Predicted of 2021.16. The meeting
examined and adopted the Proposal on Supplementing the Director Candidate for the Ninth Board of Directors.17. The meeting examined and adopted the Proposal
on By-election of the Member of the Audit Committee of the Ninth Board of Directors.18. The meeting examined and adopted the Proposal on the signing of a
contract for the entrusted operation and management from 2021 to 2023 of the Guangzhu North Section of the Guangdong Jingzhu Expressway between the
Guangdong Jingzhu Expressway Guangzhu North Section Co. Ltd and the Jingzhu Expressway Guangzhu North Section Co. Ltd.19. The meeting examined and
adopted the Proposal on the preparation of Guangdong Expressway Development Co. Ltd's "Shareholder Return Plan for the Next Three Years (2021-2023)".The 17th 1. The meeting examined and adopted the Proposal concerning the Full Text of Report for the First Quarter of 2021 and the text of Quarterly Report and approved its
(Provisional) April April announcement. 2.e meeting examined and adopted the Proposal on the scrapping of certain fixed assets of the Fokai Branch Company of Guangdong Provincial
meeting of the ninth 262021 272021 Expressway Development Co. Ltd.3. The meeting examined and adopted the Proposal on Participating in the investment and establishment of SPIC Yuetong Qiyuan
Board of Directors Chip Power Technology Co. Ltd.
522021 Annual Report
Convening Disclosur
Session Meeting resolution
date e date
The 18th
1. The meeting examined and adopted the Proposal on the Implementation Plan for the Implementation of the Tenure System and
(Provisional) May June
contract Management for Managers by Guangdong Provincial Expressway Development Co. Ltd. (Trial).2. .The meeting examined and adopted the Proposal for
meeting of the ninth 312021 12021
Holding 2020 Annual Shareholders' General Meeting.Board of Directors
The 19th
1. The meeting examined and adopted the "roposal on Change in Accounting
(Provisional) June June
Estimates" and it agreed that the Company will change the depreciation period of the Sanbao-Shuikou section of the Shenyang-Haikou National Expressway from J
meeting of the ninth 282021 292021
une 1 2021.Board of Directors
The 20th
1. The meeting examined and adopted the Proposal on increasing capital to Guangdong
(Provisional) July July
Expressway Co. Ltd to participate in the investment in the Shenzhen-Cenxi Expressway Zhongshan Xinlong to Jiangmen Longwan Section Reconstruction and Exp
meeting of the ninth 302021 312021
ansion Project.2. The meeting examined and adopted the Proposal for Holding 2021 Second Provisional Shareholders' General Meeting.Board of Directors
The 21st
(Provisional) August August 1.The meeting examined and adopted the Proposal Concerning Provision for impairment of assets .2. The meeting examined and adopted of the Proposal on
meeting of the ninth 262021 272021 Confirming the Continuous Risk Assessment Report of Guangdong Communication Group Finance Co. Ltd. 3. The meeting examined and adopted the Proposal for
Board of Directors semi-annual report 2021 and its summary .The 22nd
(Provisional) September October
The meeting examined and adopted the Proposal on Amending Part of the Articles of Association of the Company.meeting of the ninth 302021 82021
Board of Directors
1. The meeting examined and adopted the Proposal concerning the Third Quarter of 2021 . 2. The meeting examined and adopted the Proposal on Formulating the
The 23rd Management System of Authorization by the Board of Directors of Guangdong Provincial Expressway Development Co. Ltd. 3. The meeting examined and adopted
(Provisional) October October the Proposal on Formulating the Development Strategy and Planning Management System of Guangdong Provincial Expressway Development Co. Ltd. 4. The
meeting of the ninth 292021 302021 meeting examined and adopted the Proposal on Amending the Information Disclosure System for Debt Financing Instruments of Guangdong Provincial Expressway
Board of Directors Development Co. Ltd. 5. The meeting examined and adopted the Proposal on Amending the Management System for Asset Impairment Provision Accrual and
write-off of Guangdong Provincial Expressway Development Co. Ltd. 6.The meeting examined and adopted the Proposal for Holding 2021 Third Provisional
532021 Annual Report
Convening Disclosur
Session Meeting resolution
date e date
Shareholders' General Meeting.The 24th
(Provisional) December December The meeting examined and adopted the "Proposal on Donating to the Provincial Charity Federation" and agreed that the company would donate 12 million yuan to th
meeting of the ninth 242021 252021 e Guangdong Provincial Charity Federation.Board of Directors
542021 Annual Report
2. Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholders
Number of Number of
Whether to
board Number of board Number of
Number of attend the General
meetings board meetings board
Name of board board meetings of
attended meetings attended by meetings
director meetings meeting in shareholders
during the attended in means of attended by
absent from person twice attended
reporting person communicati proxy
in a row
period on
Zheng Runfa 10 1 9 0 0 No 4
Wang Chunhua 10 1 9 0 0 No 4
Lu Ming 10 1 9 0 0 No 4
Zuo Jiang 0 0 0 0 0 No 0
Chen Min 10 1 9 0 0 No 4
Zeng Zhijun 10 1 9 0 0 No 4
You Xiaocong 10 1 9 0 0 No 4
Zhuo Weiheng 1 0 1 0 0 No 1
Ren Hua 6 0 6 0 0 No 3
Wu Hao 10 1 9 0 0 No 4
Huang Hai 10 1 9 0 0 No 4
Gu Naikang 10 1 9 0 0 No 4
Bao Fangzhou 10 1 9 0 0 No 4
Zhao Hua 10 1 9 0 0 No 4
Liu Zhonghua 10 1 9 0 0 No 4
Zeng Xiaoqing 10 1 9 0 0 No 4
Explanation of failure to attend the board meeting in person twice in a row
None
3. Directors' objections to related matters of the Company
Whether the director raises any objection to the relevant matters of the Company
□ Yes √ No
During the reporting period the directors did not raise any objection to the relevant matters of the Company.
4. Other descriptions of directors' performance of duties
Whether the directors' suggestions on the Company have been adopted
√Yes □ No
552021 Annual Report
The director's statement on whether the relevant suggestions of the Company have been adopted or not
During the reporting period all the directors of the Company diligently performed the duties entrusted by the
general meeting of shareholders carefully evaluated and considered the Company's operation management
investment corporate governance and other matters actively proposed scientifically discussed and collectively
made decisions in the board meeting and put forward multiple suggestions that meet the Company's development
needs at the present stage which were adopted by the Company in the form of resolutions of the Board of
Directors.
562021 Annual Report
VII. Situation of special committees under the Board of Directors during the reporting period
Number Other
Details of
Committee Member of information
Convening date Meeting content Put forward important opinions and suggestions objections
name information meetings of duty
(if any)
convened performance
The Audit Committee reviewed the 2020 financial report prepared by
An audit
the Company and reached consensus: 1. The Company's accounting
1. Reviewed the 2020 financial supervision
policies were properly selected accounting estimates were reasonable
report prepared by the Company; 2. letter was
and no material misstatement or omission was found; 2. No major
January 72021 The CPA reported the audit plan of submitted to
shareholders were found occupying the Company's funds; 3. No
the 2020 financial report to the Audit the
external violation guarantee or abnormal related party transactions were
Committee. accounting
found; 4. The Company's financial statements could be submitted to the
firm.CPA firm for annual audit.Chairman of the 1. Reviewed the 2020 annual 1. The Audit Committee reviewed the 2020 financial report submitted
Committee：Liu financial report submitted by the by the Company's Finance Department and issued by the certified
Audit Zhonghua Company's Finance Department and public accountant for annual review with preliminary audit opinions
4
Committee Member:Zhang issued by certified public and reached consensus as follows: (1) The audit of the Company's 2020
Hua Lu Ming accountants with preliminary audit financial report by the certified public accountant for annual review was An audit
opinions; 2. Listened to the reports conducted in strict accordance with the relevant norms of audit supervision
of the Proposal on Hiring Financial business; (2) During preparation of the annual report the annual letter was
March 252021 Report Audit Institution in 2021 and certified public accountants communicated with the Audit Committee submitted to
the Proposal on Hiring Internal effectively and fully listened to the opinions of the Audit Committee the
Control Audit Institution in 2021 and consensus was reached on all major aspects in the annual review; accounting
and reviewed relevant information; (3) The annual financial report issued by certified public accountants firm.
3. Reviewed and approved the with preliminary audit opinions was relatively complete with no major
Company's 2020 Internal Audit omissions and it fairly reflected the Company's financial position as of
Work Summary and 2021 Internal December 31 2020 and the production and operation results and cash
Audit Work Plan; 4. Reviewed and flow in 2020 in all major aspects. 2. After the Audit Committee listened
572021 Annual Report
Number Other
Details of
Committee Member of information
Convening date Meeting content Put forward important opinions and suggestions objections
name information meetings of duty
(if any)
convened performance
approved the Proposal on Reviewing to the reports of the Proposal on Hiring Financial Report Audit
the Company's 2021 Internal Control Institution in 2021 and the Proposal on Hiring Internal Control Audit
Evaluation Work Plan; 5. Reviewed Institution in 2021 and reviewed the relevant information it concluded
and approved the Proposal on that Yongtuo Certified Public Accountants (special general partnership)
Reviewing the 2020 Internal Control had the relevant qualifications to engage in the audit business of listed
Evaluation Report of Guangdong companies followed the independent objective and fair practice
Expressway Development Co. Ltd. standards and had the experience and ability to provide audit services
for listed companies could meet the needs of the Company's 2021
financial report and internal control audit work could independently
audit the Company's financial position and agreed to employ Yongtuo
Certified Public Accountants (special general partnership) as the audit
institution and internal control audit institution of the Company's 2021
financial report and agreed to submit the above two proposals to the
Board of Directors and the general meeting of shareholders for
deliberation.The Audit Committee reviewed the standard and unqualified 2020
It reviewed the standard and financial report submitted by the Company's Financial Management
unqualified 2020 financial report Department and issued by the certified public accountant for annual
submitted by the Company's review and concluded that the Company's financial report truly
March 252021
Financial Management Department accurately and completely reflected the overall situation of the
and issued by the accountant for Company and agreed to submit the 2020 financial report prepared by
annual audit the Company and audited by the certified public accountant for annual
review to the Board of Directors for deliberation.It reviewed the Work Summary for
August 262021
the First half and Work Plan for the
582021 Annual Report
Number Other
Details of
Committee Member of information
Convening date Meeting content Put forward important opinions and suggestions objections
name information meetings of duty
(if any)
convened performance
Second Half of the Internal Audit of
Guangdong Expressway in 2021
The Committee believed that in 2020 the Company's directors and
It reviewed the 2020 Work Report of
senior management personnel performed their duties diligently and
the Board of Directors 2020
March 252021 conscientiously and agreed to the remuneration of directors and senior
General Manager's Business Report
management personnel determined by the Company in accordance with
and 2020 Annual Report.relevant systems and regulations in 2020.It reviewed the Implementation Plan The Committee believes that the Implementation Plan prepared by the
Chairman of the
for Guangdong Expressway Company in accordance with the requirements of the Work Plan on
Remuneratio Committee：Bao
Development Co. Ltd. to implement Implementing the Tenure System and Contractual Management of
n and Fangzhou
1 the tenure system of managers and Managers in Provincial Enterprises of Grade II and below (YGZH
Assessment Member :Gu March 252021
contractual management (Trial) [2020] No.227) issued by Guangdong Provincial State-owned Assets
Committee Naikang Huang
(hereinafter referred to as Supervision andAdministration Commission conform to the actual
Hai
Implementation Plan) and other situation of the Company; and agreed to submit the Implementation
materials. Plan to the Board of Directors of the Company for deliberation.It reviewed the Budget Allocation
Plan of Total Wages of Guangdong
December 242021
Expressway Headquarters and
Directly Affiliated Units in 2021.Chairman of the It reviewed the Company's 14th
It believed that the Company's 14th Five-Year Development Plan
Committee： Five-Year Development Plan
Strategy (Draft) needed to be further revised and improved according to the
Zheng Runfa 1 March 252021 (Draft) the 14th Five-Year
Committee actual situation of the Company and the completion of the 14th
Member: Wang Development Plan of Guangdong
Five-Year Development Plan of the provincial transportation group.Chunhua Bao Communications Group Co. Ltd.
592021 Annual Report
Number Other
Details of
Committee Member of information
Convening date Meeting content Put forward important opinions and suggestions objections
name information meetings of duty
(if any)
convened performance
Fangzhou Zhang (Another Draft for Comment) and
Hua Zeng other materials.Xiaoqing
Chairman of the It reviewed and approved the Legal
Committee： Enterprise Construction Plan
Risk
Zheng Runfa; (2021-2025) of Guangdong It agreed that the evaluation results objectively reflected the risk status
Management 1 December 242021
Member: Gu Expressway Development Co. Ltd. of the Company.Committee
Naikang Bao and reviewed 2021 Risk Assessment
Fangzhou Results.
602021 Annual Report
VIII.The working status of the board of supervisors
The board of supervisors finds out whether the company has risks during the monitoring activities during the repo
rting period
□ Yes √ No
The Supervisory Committee has no objection to the supervision matters during the reporting period.IX. Particulars about employees.
1.Number of staff professional structure and educational background
Number of in-service staff of the parent company(person) 110
Number of in-service staff of the main subsidiaries(person) 2873
The total number of the in-service staff(person) 2983
The total number of staff receiving remuneration in the current
2976
period(person)
Retired staff with charges paid by the parent company and
121
main subsidiaries (person)
Professional
Category Number of persons（person）
Operating personnel 2370
Sale personnel 0
Technology Personnel 388
Financial personnel 74
Management personnel 151
Total 2983
Education
Category Number of persons（person）
Holders of master’s degree or above 59
Graduates of regular university 626
Graduates of junior colleges 1677
Other 621
Total 2983
2. Remuneration policies
Guangdong Expressway follows the principle of adhering to the benefit orientation taking into account of
efficiency and fairness and combining incentives with constraints provides active encouragement and paid
attention to the long-term. According to national laws regulations and policies it establishes the annual salary
612021 Annual Report
system for the person in charge of the enterprise and the performance salary system for management posts adopts
the total salary budget to be included in the overall budget management and makes employees' salary closely
linked with individual performance and enterprise benefits according to the interrelated performance contributions
of labor management and skills.The Company provides various benefits in compliance with laws and regulations and employees enjoy
various benefits such as social insurance enterprise annuity supplementary medical care trade union mutual
insurance etc. so as to ensure that employees can share development achievements and thereby arouse their
working passion.
3.Training plan
Each business department organizes employees to participate in the business post training organized by the
competent department of industry and social professional training institutions according to the employee job
characteristics employee job performance and industry development trend of the department. In order to help
enterprises develop with high quality and efficiently complete the task of state-owned enterprise reform it is
planned to carry out special training on state-owned enterprise reform; in order to improve employees' working
satisfaction it is planned to carry out special training on employees' mental health and physical health care. Carry
out continuing education and training for professional and technical personnel. Carry out various training
activities such as special education and incorruption education in cooperation with the party and the masses
supervision and examination etc.
4.Outsourcing situation
□ Applicable √ No Applicable
X. Specification of profit distribution and capitalizing of common reserves
Formulation implementation or adjustment of the profit distribution policy especially the cash dividend policy
during the reporting period
□Applicable √ Not applicable
During the reporting period the Company made a profit and the profit available to shareholders of the parent
company was positive but no cash dividend distribution plan was put forward.□ Applicable √ Not applicable
Profit distribution and capitalization of capital reserve during the reporting period
√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares) 0
Cash dividend for every ten shares (Yuan)(Tax-included) 5.70
A total number of shares as the distribution basis(shares) 2090806126
Cash dividend amount (yuan including tax 1191759491.82
Other means (such as repurchase of shares) cash dividend
0.00
amount (yuan)
Total cash dividend (yuan including tax) 1191759491.82
Distributable profit (yuan) 4644071381.03
622021 Annual Report
Proportion of cash dividend in the distributable profit 100%
Cash dividend distribution policy
The Company is in a fast growth stage there for the cash dividend will reach 80% of the profit distribution at least. Cash
dividend distribution policy.Details of profit distribution or reserve capitalization Preplan
1. Limited to 50% of the registered capital of the company the net profit of the company i.e. 57589364.93 yuan is to be
allocated for statutory common reserve fund；
2.The profit for 2021 is to be distributed as follows: 1191759491.82 yuan. is to be allocated as the fund for dividend
distribution for 2021. with the total shares at the end of 2021 i.e. 2090806126 shares as the base cash dividend of 5.70 yuan
(including tax) is to be distributed for every 10 shares .The remaining undistributed profits are to be carried forward to the next
year. The foreign exchange translation of the cash dividends for shareholders holding B share and overseas corporate shares will
be determined according to HKD:RMB bank’s Middle rate quoted by People’s Bank of China on the first working day after 2021
annual shareholders’ general meeting makes resolution on dividend distribution.XI. Implementation Situation of Stock Incentive Plan of the Company Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
None
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
The Company has established a sound corporate governance structure with clear responsibilities of general
meeting of shareholders Board of Directors Board of Supervisors and management established corporate
governance rules centered by the Articles of Association rules of procedure of general meeting of shareholders
Board of Supervisors Board of Directors and specialized committees thereunder standardized operation of
general meeting of shareholders Board of Directors and Board of Supervisors held and convened relevant
meetings in accordance with the provisions of the Company Law and the Articles of Association and reached legal
and valid resolutions. The general meeting of shareholders is the highest authority of the Company; the Board of
Supervisors is responsible for the general meeting of shareholders and the supervision of directors and
management to perform their duties according to law is sound and effective. The Board of Directors shall be
responsible to the general meeting of shareholders and exercise the business decision-making power according to
law. It is provided with an Audit Committee the independent directors meet the quorum and the decision-making
procedures and management rules of procedure of the Board of Directors are scientific and transparent; the
management is efficient and rigorous in implementing the resolutions of the Board of Directors.The Company has set up 10 functional departments including Investment Development Department Human
Resources Department Financial Management Department Infrastructure Management Department Operation
and Management Department Discipline Inspection and Audit Department Securities Affairs Department
Comprehensive Affairs Department Legal Affairs Department and Party and Mass Work Department. The
distribution of powers and responsibilities and business processes of all functional departments are clear and
reasonable forming a working mechanism of duty performance responsibility shouldering mutual restriction and
632021 Annual Report
coordination. The Company has established a perfect control system for parent-subsidiary companies and formed
a sound internal control system for each subsidiary company. Meanwhile the Company has established and
improved rules and regulations related to risk assessment fraud risk control information and communication and
maintained effective internal control.The Company has set up an Audit Committee under the Board of Directors to supervise the effective
implementation of the Company's internal control and self-evaluation of internal control. The Company has set up
the Discipline Inspection and Audit Department which is responsible for supervising the establishment and
operation of the Company's internal control system evaluating the Company's risk control and evaluating the
effectiveness of the Company's internal control. It has defined the standards of internal control defect
identification rectification procedures and internal control self-evaluation procedures and formed an effective
internal control supervision system.
2.Details of major internal control defects found during the reporting period
□ Yes √ No
XIII. Management and control of the Company's subsidiaries during the reporting period
□ Applicable √ Not applicable
642021 Annual Report
XIV.Internal control self-evaluation report or internal control audit report
1.Self-evaluation report on internal control
Disclosure date of appraisal report on
March 16 2022
internal control
Disclosure index of appraisal report on
www.cninfo.com.cn
internal control
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of
units included in the scope of evaluation
accounting for the operating income on 100.00%
the company's consolidated financial
statements
Standards of Defects Evaluation
Type Financial Report Non-financial Report
The qualitative criteria for the evaluation of internal control deficiencies in The qualitative criteria for the evaluation of internal control deficiencies in
financial reports confirmed by the Company is as follows: The following non-financial reports confirmed by the Company is as follows: Materialsituations (including but not limited to) shall be deemed as “material deficiencies: serious violations and being sentenced to heavy fines or needdeficiencies” in the internal control of the financial report. (1) There are major taking criminal responsibility; utterly disregard the rules of law illegal
Qualitative standard frauds made by the directors or supervisors or senior management personnel behaviors in the operation and management are particularly severe and the
in the company’s management activities; (2)There are material misstatements circumstance is very bad which leads to the suspension or cessation to the
in the current financial report but the internal control failed to find the company's daily operation and management activities and leads to the
misstatements during its operation; (3) The supervisions made by the audit report with a disclaimer of opinion or a negative opinion issued by the
company's audit committee and the internal audit organization on the internal CPA; the negative news spread all over the country which caused severe
652021 Annual Report
control are invalid; (4) The control environment is invalid; (5)The material damage to the company’s reputation; resulted in decease of a number of
deficiencies found and reported to the management but are not corrected workers or citizens or resulted in damages that are unable to recover to
within a reasonable time; (6)There is an administrative punishment from the workers or citizens; reached the circumstance(grade II) of major
securities regulatory environmental event. Significant deficiencies: illegal and being punished;
institution due to accounting errors. disregard the requirements of the company’s management system and the
The following situations (including but not limited to) shall be deemed as relevant rules of law there are illegal acts of using the authority to seek
“significant deficiencies” in the internal control of the financial report and illegal interests in the work which significantly affect the efficiency and
there are intense signs for the situations becoming “material deficiencies”: (1) the result of daily operation and management activities and lead to the audit
Frauds made by staff in key positions; (2)The supervisory function on report with qualified opinion issued by the CPA; the negative news spread
compliance is invalid and the violations of regulations may have a significant in a region which caused the large-extent damage to the company’s
impact on the reliability of the financial report; (3)The significant deficiencies reputation; resulted in decease of a worker or a citizen or resulted in
reported to the management but are not damages that need long time to recover to workers or citizens;
corrected within a reasonable period. reached the circumstance(grade Ⅲ) of big environmental event. General
The following situations (including but not limited to) shall be deemed as deficiencies: minor violations; the awareness of management under in
“general deficiencies” in the internal control of the financial report. (1) Frauds compliance with laws and regulations is weak lacking of business and
made by staff in non key positions or business operators execute the management knowledge and there are phenomena such as being slack in
implementation procedures not strictly conforming to the company’s policy performing management duties being passive and poorly execute the
but resulted in no significant impact on the reliability of the financial report. institution in the work which shall affect the efficiency and the result of
(2)The supervisory function on compliance is invalid and the violations of daily operation and management activities and lead to small effects to the
regulations may not have a significant impact on the reliability of the financial company’s management goal; the negative news spread within the
report; (3)The general deficiencies reported to the management but are not company which caused the little-extent damage to the company’s
corrected within a reasonable period. reputation; shortly affected the health of the workers or citizens and the
workers or citizens can be recovered in a short time; reached the
circumstance(grade Ⅳ) of general environmental event.The qualitative criteria for the evaluation of internal control deficiencies in The qualitative criteria for the evaluation of internal control deficiencies in
financial reports confirmed by the Company is as follows: Material financial reports confirmed by the Company is as follows: Material
deficiencies: potential misstatement≧1% of the total amount of the deficiencies: potential misstatement≧1% of the total amount of the
Standards of Quantization
owner’s equity or RMB 200 million; significant deficiencies: 0.5% of the total owner’s equity or RMB 200 million; significant deficiencies: 0.5% of the
amount of the owner’s equity or RMB 100 million≤potential misstatement＜ total amount of the owner’s equity or RMB 100 million≤potential
1% of the total amount of the owner’s equity or RMB 200 million; general misstatement＜1% of the total amount of the owner’s equity or RMB 200
662021 Annual Report
deficiencies: potential misstatement＜0.5% of the total amount of the owner’s million; general deficiencies: potential misstatement＜0.5% of the total
equity or RMB 100 million Standards of Quantization amount of the owner’s equity or RMB 100 million Standards of
Quantization
Number of major defects in financial
0
reporting（a）
Number of major defects in non
0
financial reporting (a)
Number of important defects in financial
0
reporting（a）
Number of important defects in non
0
financial reporting（a）
672021 Annual Report
2. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
In our opinion Guangdong Expressway has maintained effective financial report internal control in all material aspects according
to the basic standards for Enterprise internal control and relevant regulations ended December 31 2021.Disclosure of internal audit report Disclosure
Disclosure date of audit report
March 16 2022
of internal control (full-text)
Disclosure index of audit report
www.cninfo.com.cn
of internal control (full-text)
Internal audit report’s opinion Unqualified audit opinion
Has the CPAs issued a qualified auditor’s report of internal control .□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
XV.Rectification of self-examination problems in special governance actions of listed companies
According to the Notice on Well Ensuring Self-examination and Self-correction for Special Governance
Actions of Listed Companies issued by Guangdong Securities Regulatory Bureau the Company carefully combed
the corporate governance including the establishment of the organization the revision of the company system the
operation and decision-making of the organization the code of conduct of controlling shareholders and related
parties the related party transactions and the internal control standard system.Upon self-examination it is found that the Company strictly follows the requirements of the Company Law
the Securities Law the Governance Guidelines for Listed Companies the Stock Listing Rules and other laws and
regulations to build and improve the corporate governance structure and improve the standard operation level. The
Company has formulated the Articles of Association the rules of procedure for the operation of the third meetings
the working rules of the special committees of the Board of Directors the working rules of the general manager
and other systems as well as the internal control system covering the Company's financial management
investment management information disclosure related party transactions external guarantee fund raising and
other aspects of operation and management and all these systems have been well implemented.The general meeting of shareholders performs its functions effectively in strict accordance with the Company
Law the Articles of Association and other relevant regulations. The Board of Directors is responsible to the
general meeting of shareholders bears the ultimate responsibility of daily operation and management holds
meetings according to legal procedures and exercises its powers. In the attitude of being responsible to all
shareholders the Board of Supervisors maintains close contact and communication with the Board of Directors
and management and effectively performs all supervisory powers and obligations.The Company must operate independently in terms of business personnel assets institutions and finance for
controlling shareholders.The Company rectified the insufficiency in number of meetings held by the professional committee of the
682021 Annual Report
Board of Directors every year. During the reporting period the Audit Committee of the Board of Directors held 4
meetings; the Remuneration and Assessment Committee held 3 meetings; the Strategy Committee and the Risk
Management Committee held 1 meeting respectively. Communication supervision and verification of internal and
external audit of the Company by the professional committees of the Board of Directors; it reviews the
remuneration policies and programs of directors and senior management personnel of the Company; studies the
strategic development direction of the Company and the establishment of enterprise risk management system puts
forward guiding opinions for the establishment of enterprise risk management system and provides advice and
suggestions for major decisions of the Board of Directors.
692021 Annual Report
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
□ Yes √ No
Administrative penalties for environmental problems during the reporting period
□Applicable √ Not applicable
Refer to other environmental information disclosed by key pollutant discharge units
The Company and its subsidiaries shall not be included into the list of key pollutant discharge units such as
water atmosphere soil and sound environment according to the Management Regulations of the List of Key
Pollutant Discharge Units (for trial implementation). The Company advocates a green office with low carbon and
environmental protection and conscientiously implements environmental protection laws and regulations such as
the Environmental Protection Law of the People's Republic of China the Water Pollution Prevention Law of the
People's Republic of China the Air Pollution Prevention Law of the People's Republic of China the
Environmental Noise Pollution Prevention Law of the People's Republic of China and the Solid Waste Pollution
Prevention Law of the People's Republic of China in daily operations. During the reporting period no punishment
is imposed due to environmental protection violations.Measures and effects taken to reduce its carbon emissions during the reporting period
□Applicable √ Not applicable
Reasons for not disclosing other environmental information
None
II. Social responsibilities
In 2021 the Company strove to overcome the repeated adverse effects of the epidemic worked hard and
overcame difficulties. While strictly implementing various prevention and control measures to achieve zero
infection in the company's system it also adhered to the front line of epidemic prevention ensured unblocked
roads made overall plans to promote the prevention and control of the normalized epidemic and all tasks of the
Company and effectively promoted the stabilization and improvement of economic operation.
1. In order to well ensure epidemic prevention and control the Company's participating and holding
expressway companies actively responded to the higher-level policies and the party committee and management
team of the Company actively mobilized volunteers from the Party League and the Trade Union to participate in
the epidemic prevention and control effectively promoting the normalization of epidemic prevention and control
work.
2. On major holidays the toll-free policy intermittent free release and green channel preferential policy for
passenger cars with less than seven seats on the expressway continue to be implemented and Guang-Foshan
Company Foshan-Kaiping Branch East Guangzhou-Zhuhai Company and Guangzhou-Huizhou Company
earnestly achieve "awareness established in place personnel provided in place responsibilities implemented in
place and measures assigned in place" and successfully complete the tasks of ensuring safety and smoothness.
3. Actively respond to government policies legally provide preferential and relief policies according to
regulations and reduce transportation costs of enterprises and public travel costs.
4. Conscientiously implement the government task and effectively guarantee the smooth operation of the
system after canceling the transformation and switching of ETC charging system of provincial toll stations. The
toll stations of the Company's holding sections are with smooth traffic the service points of Unitoll Expressway in
702021 Annual Report
Guangdong operated orderly the toll display and data transmission of toll lanes are correct the lane configuration
is continuously optimized and the ETC system is generally stable.III.Consolidate and expand the achievements of poverty alleviation and rural revitalization
The Company actively responded to the call of the provincial party committee and the provincial government
for the 2021 Guangdong Poverty Alleviation Day and after deliberation and approval by the Board of Directors it
donated RMB 12 million to the Guangdong Charity Federation in December 2021.
712021 Annual Report
VI. Important Events
I. Commitments to fulfill the situation
1.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
Time of making
Period of
Commitment commitment Fulfillment
Commitment Type Contents commitment
maker
Commitment on share
reform
Commitment in the
acquisition report or the
report on equity changes
The predicted net profit of Guangdong Guanghui Expressway Co. Ltd. after deducting
Guangdong non-recurring gains and losses in 2020 2021 and 2022 (hereinafter referred to as "predicted net
Provincial profit") is RMB 652477500 RMB 1112587300 and RMB 1234200900 respectively. Normal
Performance November 25
Freeway According to the special audit opinion issued by the accounting firm if the accumulated realized 2020-2022 performanc
commitment
Co.Ltd. 2020net profit of Guangdong Guangzhou-Huizhou Expressway Co. Ltd. at the end of any fiscal year e
Commitment made upon the does not reach the accumulated predicted net profit within the compensation period Guangdong
assets replacement Provincial Freeway Co.Ltd. will compensate in cash as agreed.Commitment 1. The explanations commitment and information provided by the Company for this transaction
on authenticity are authentic accurate and complete and there are no false records misleading statements or Normal
Guangdong November 25 Permanently
accuracy and major omissions. 2. The information provided by the Company to the intermediaries that provide performanc
Expressway 2020 effective
completeness professional services such as auditing evaluation legal and financial consulting for this e
of the transaction is authentic accurate and complete original written information or duplicate
722021 Annual Report
information information and the duplicate or photocopy of the information is consistent with its original
provided information or original copy; The signatures and seals of all documents are authentic and the
legal procedures required for signing and sealing have been fulfilled and legal authorization has
been obtained; There are no false records misleading statements or major omissions. 3. The
Company guarantees that it will provide timely information about this transaction in accordance
with relevant laws and regulations relevant regulations of China Securities Regulatory
Commission and Shenzhen Stock Exchange ensure the authenticity accuracy and completeness
of such information and guarantee that there are no false records misleading statements or major
omissions. 4. The Company shall bear individual and joint legal responsibilities for the
authenticity accuracy and completeness of the information provided or disclosed for this
exchange. In case of any loss caused to investors due to violation of the above commitments the
Company will bear corresponding liability for compensation according to law.
1. The explanations commitment and information provided by the Promisee for this transaction
are authentic accurate and complete and there are no false records misleading statements or
major omissions. 2. The information provided by the Promisee to the intermediaries that provide
professional services such as auditing evaluation legal and financial consulting for this
transaction is authentic accurate and complete original written information or duplicate
information and the duplicate or photocopy of the information is consistent with its original
All directors Commitment
information or original copy; The signatures and seals of all documents are authentic and the
supervisors and on authenticity
legal procedures required for signing and sealing have been fulfilled and legal authorization has
senior accuracy and Normal
been obtained; There are no false records misleading statements or major omissions. 3. The November 25 Permanently
management completeness performanc
Promisee guarantees that it will provide timely information about this transaction in accordance 2020 effective
personnel of of the e
with relevant laws and regulations relevant regulations of China Securities Regulatory
Guangdong information
Commission and Shenzhen Stock Exchange ensure the authenticity accuracy and completeness
Expressway provided
of such information and guarantee that there are no false records misleading statements or major
omissions. 4. If this transaction is suspected of false records misleading statements or major
omissions in the information provided or disclosed and is put on file for investigation by judicial
organs or by China Securities Regulatory Commission the transfer of its shares with interests in
the listed company will be suspended until the investigation conclusion of the case is obtained. 5.The Promisee shall bear individual and joint legal responsibilities for the authenticity accuracy
732021 Annual Report
and completeness of the information provided or disclosed for this exchange. In case of any loss
caused to investors due to violation of the above commitments the Promisee will bear
corresponding liability for compensation according to law.
1. I promise not to transfer benefits to other units or individuals without compensation or under
unfair conditions nor to damage the interests of the Company by other means. 2. I promise to
restrain my job consumption behavior. 3. I promise not to use the assets of the Company to
All directors
Commitment engage in any investment and consumption activities unrelated to my duties. 4. I promise that the
supervisors and
on filling salary system formulated by the Board of Directors or the Remuneration Committee of
senior Normal
measures to Guangdong Expressway will be linked with the implementation of the reward filling measures of November 25 Permanently
management performanc
dilute Guangdong Expressway. 5. If Guangdong Expressway plans to implement equity incentive I 2020 effective
personnel of e
immediate promise that the exercise conditions of equity incentive of Guangdong Expressway to be
Guangdong
reward announced will be linked with the implementation of the reward filling measures. 6. In case of
Expressway
any loss caused to Guangdong Expressway or its shareholders due to violation of the above
commitments or refusal to perform the above commitments I will bear corresponding
compensation responsibilities according to law.
1. The Company and its holding subsidiaries will not use the controlling shareholder's holding This letter of
relationship with Guangdong Expressway to conduct business activities that harm the legitimate commitment
rights and interests of Guangdong Expressway its minority shareholders and its holding is valid from
subsidiaries. 2. The Company and its holding subsidiaries will not use the information obtained the date of
Guangdong from Guangdong Expressway and its holding subsidiaries to engage in the main business signing to
Commitment
Provincial competing with Guangdong Expressway or its holding subsidiaries and will not engage in any the date Normal
on avoiding
Freeway acts or activities that damage or may damage the legitimate rights and interests of Guangdong when theJune 262015 performanc
horizontal
Co.Ltd. Expressway its minority shareholders and its holding subsidiaries. 3. If the Company and its Provincial e
competition holding subsidiaries transfer any toll roads bridges tunnels and related ancillary facilities or Expressway
rights invested or managed by the Company to a company other than Guangdong is no longer
Communications Group Co. Ltd. and the company directly or indirectly controlled by it controlled by
Guangdong Expressway will be entitled to the preemptive right under the same conditions unless the
the transferee is explicitly designated by the relevant government authorities under the premise controlling
permitted by relevant laws and regulations. 4. In the future if the Company and its holding shareholder
742021 Annual Report
subsidiaries invest in the construction of expressways parallel to or in the same direction within of
20 km from each side of the expressway controlled by Guangdong Expressway Guangdong Guangdong
Expressway will enjoy the priority of investment over Guangdong Communications Group Co. Expressway
Ltd. and its directly or indirectly controlled companies except Guangdong Expressway and its
holding subsidiaries except for the projects whose investment entities are clearly designated by
the relevant government authorities under the premise permitted by relevant laws and regulations.This letter of
commitment
is valid from
the date of
signing to
The Company will not damage the independence of Guangdong Expressway due to the increase
the date
Commitment of shares held by the Company after the completion of this major asset restructuring and will
Guangdong when the
on maintaining continue to maintain the principle of separation from Guangdong Expressway in terms of assets
Provincial Provincial Normal
the personnel finance organization and business and strictly abide by the relevant regulations of
Freeway June 262015 Expressway performanc
independence China Securities Regulatory Commission on the independence of listed companies and will not
Co.Ltd. is no longer e
of listed use Guangdong Expressway to provide guarantees nor occupy Guangdong Expressway funds
controlled by
companies illegally so as to maintain and protect the independence of Guangdong Expressway and protect
the
the legitimate rights and interests of other shareholders of Guangdong Expressway.controlling
shareholder
of
Guangdong
Expressway
Commitment
Guangdong 1. After the completion of this major asset restructuring the Company and the companies directly This letter of
on reducing
Provincial or indirectly controlled by the Company and other related parties will try to avoid related commitment Normal
and
Freeway transactions with Guangdong Expressway and its holding subsidiaries; Related transactions that
June 26 is valid from
performanc
standardizing
Co.Ltd. are really necessary and unavoidable are carried out in accordance with the principles of fairness 2015 the date of e
related equity and compensation of equal value. The transaction price is determined at a reasonable price signing to
transactions recognized by the market. The transaction approval procedures and information disclosure the date
752021 Annual Report
obligations are performed in accordance with relevant laws regulations and normative when the
documents and the interests of Guangdong Expressway and its minority shareholders are Provincial
effectively protected. 2. The Company guarantees to exercise shareholders' rights and fulfill Expressway
shareholders' obligations in strict accordance with relevant laws and regulations rules and is no longer
normative documents promulgated by China Securities Regulatory Commission business rules controlled by
promulgated by Shenzhen Stock Exchange and Articles of Association of Guangdong Provincial the
Expressway Development Co. Ltd. and it will not use the controlling position of Guangdong controlling
Expressway's controlling shareholders to seek improper benefits or damage the legitimate rights shareholder
and interests of Guangdong Expressway and its minority shareholders. of
Guangdong
Expressway
1. The information involved in the explanations and commitment provided by the Company for
this transaction are authentic accurate and complete and there are no false records misleading
statements or major omissions. 2. The information provided by the Company to the intermediaries
that provide professional services such as auditing evaluation legal and financial consulting for
Commitment
this transaction is authentic accurate and complete original written information or duplicate
Guangdong on authenticity
information and the duplicate or photocopy of the information is consistent with its original
Provincial accuracy and Normal
information or original copy; The signatures and seals of all documents are authentic and the November 25 Permanently
Freeway completeness performanc
legal procedures required for signing and sealing have been fulfilled and legal authorization has
Co.Ltd. 2020
effective
of the e
been obtained; There are no false records misleading statements or major omissions. 3. The
information
Company guarantees that it will provide timely information about this transaction in accordance
provided
with relevant laws and regulations relevant regulations of China Securities Regulatory
Commission and Shenzhen Stock Exchange ensure the authenticity accuracy and completeness
of such information and guarantee that there are no false records misleading statements or major
omissions.Commitment The Company and the companies directly or indirectly controlled by the Company except This letter of
Guangdong Normal
on maintaining Guangdong Expressway and its holding subsidiaries will not damage the independence of June 18 commitment
Communicatio performanc
the Guangdong Expressway due to the increase in the shares of Guangdong Expressway held by the 2015 is valid from
ns Group e
independence Company and the companies directly or indirectly controlled by the Company except Guangdong the date of
762021 Annual Report
of listed Expressway and its holding subsidiaries after the completion of this major asset restructuring and signing to
companies will continue to maintain the principle of separation from Guangdong Expressway in terms of the date
assets personnel finance organization and business and strictly abide by the relevant regulations when the
of China Securities Regulatory Commission on the independence of listed companies and will Provincial
not use Guangdong Expressway to provide guarantees nor occupy Guangdong Expressway funds Expressway
illegally so as to maintain and protect the independence of Guangdong Expressway and protect is no longer
the legitimate rights and interests of other shareholders of Guangdong Expressway. controlled by
the
controlling
shareholder
of
Guangdong
Expressway
1. The Company and the companies directly or indirectly controlled by the Company except
This letter of
Guangdong Expressway and its holding subsidiaries will not use the controlling shareholder's
commitment
holding relationship with Guangdong Expressway to conduct business activities that harm the
is valid from
legitimate rights and interests of Guangdong Expressway its minority shareholders and its
the date of
holding subsidiaries. 2. The Company and the companies directly or indirectly controlled by the
signing to
Company except Guangdong Expressway and its holding subsidiaries will not use the information
the date
obtained from Guangdong Expressway and its holding subsidiaries to engage in the main business
Commitment when the
Guangdong competing with Guangdong Expressway or its holding subsidiaries and will not engage in any Normal
on avoiding Provincial
Communicatio acts or activities that damage or may damage the legitimate rights and interests of Guangdong June 262015 performanc
horizontal Expressway
ns Group Expressway its minority shareholders and its holding subsidiaries. 3. If the Company and other e
competition is no longer
companies directly or indirectly controlled by the Company except Guangdong Expressway and
controlled by
its holding subsidiaries transfer any toll roads bridges tunnels and related ancillary facilities or
the
interests invested or managed by the Company to companies other than the Company directly or
controlling
indirectly controlled by the Company Guangdong Expressway shall be entitled to the preemptive
shareholder
right under the same conditions unless the transferee is explicitly designated by the relevant
of
government authorities under the premise permitted by relevant laws and regulations. 4. In the
Guangdong
future if the Company and the companies directly or indirectly controlled by the Company except
772021 Annual Report
Guangdong Expressway and its holding subsidiaries invest in the construction of expressways Expressway
parallel to or in the same direction within 20 km from each side of the expressway controlled by
Guangdong Expressway Guangdong Expressway will be entitled to the priority investment right
compared with the Company and the companies directly or indirectly controlled by the Company
except Guangdong Expressway and its holding subsidiaries except for the projects whose
investment entities are clearly designated by the relevant government authorities under the
premise permitted by relevant laws and regulations.
1. After the completion of this major asset restructuring the Company and other companies and This letter of
other related parties directly or indirectly controlled by the Company except Guangdong commitment
Expressway and its holding subsidiaries will try to avoid related transactions with Guangdong is valid from
Expressway and its holding subsidiaries; Related transactions that are really necessary and the date of
unavoidable are carried out in accordance with the principles of fairness equity and signing to
compensation of equal value. The transaction price is determined at a reasonable price recognized the date
Commitment
by the market. The transaction approval procedures and information disclosure obligations are when the
on reducing
Guangdong performed in accordance with relevant laws regulations and normative documents and the Provincial Normal
and
Communicatio interests of Guangdong Expressway and its minority shareholders are effectively protected. 2. The June 182015 Expressway performanc
standardizing
ns Group Company guarantees to exercise shareholders' rights and fulfill shareholders' obligations in strict is no longer e
related
accordance with relevant laws and regulations rules and normative documents promulgated by controlled by
transactions
China Securities Regulatory Commission business rules promulgated by Shenzhen Stock the
Exchange and Articles of Association of Guangdong Provincial Expressway Development Co. controlling
Ltd. and it will not use the controlling position of controlling shareholders to seek improper shareholder
benefits or damage the legitimate rights and interests of Guangdong Expressway and its minority of
shareholders. Guangdong
Expressway
Commitment 1. The explanations commitment and information provided by the Company for this transaction
Guangdong on authenticity are authentic accurate and complete and there are no false records misleading statements or NormalNovember 25 Permanently
Communicatio accuracy and major omissions. 2. The information provided by the Company to the intermediaries that provide performanc
2020 effective
ns Group completeness professional services such as auditing evaluation legal and financial consulting for this e
of the transaction is authentic accurate and complete original written information or duplicate
782021 Annual Report
information information and the duplicate or photocopy of the information is consistent with its original
provided information or original copy; The signatures and seals of all documents are authentic and the
legal procedures required for signing and sealing have been fulfilled and legal authorization has
been obtained; The validity of the originals of each document has not been revoked within its
validity period and such originals are held by their respective legal holders up to now; There are
no false records misleading statements or major omissions. 3. The Company guarantees that if
there are false records misleading statements or major omissions in the information provided or
disclosed for this transaction which are filed for investigation by judicial organs or filed for
investigation by China Securities Regulatory Commission before the investigation conclusion is
revealed the Company promises to suspend the transfer of shares with interests in Guangdong
Expressway and submit the written application for suspension of transfer and the stock account to
the Board of Directors of Guangdong Expressway within two trading days after receiving the
notice of filing inspection and the Board of Directors of Guangdong Expressway will apply for
locking on behalf of the Company to the stock exchange and the registration and clearing
company; If the application for locking is not submitted within two trading days the Board of
Directors of Guangdong Expressway is authorized to directly submit the identity information and
account information of the Company to the stock exchange and the registration and clearing
company after verification and apply for locking; If the Board of Directors of Guangdong
Expressway fails to submit the Company's identity information and account information to the
stock exchange and the registration and clearing company the stock exchange and the registration
and clearing company are authorized to directly lock the relevant shares. If the investigation
results show that there are violations of laws and regulations the Company promises to lock in
shares and use them voluntarily for compensation arrangements of relevant investors. 4. The
Company shall bear individual and joint legal responsibilities for the authenticity accuracy and
completeness of the information provided or disclosed for this exchange. In case of any loss
caused to Guangdong Expressway or investors due to violation of the above commitments the
Company will bear corresponding liability for compensation according to law.Commitment 1. It will not interfere with the business activities of Guangdong Expressway beyond authority
Guangdong November 25 Permanently Normal
on fulfilling and will not encroach on the interests of Guangdong Expressway. 2. In case of any loss caused to
Communicatio 2020 effective performanc
filling Guangdong Expressway or investors due to violation of the above commitments the Company
792021 Annual Report
ns Group measures to will bear corresponding liability for compensation according to law. e
dilute
immediate
reward
1. The land occupied and used by Guangzhou-Huizhou Expressway with a total area of
3732185.08 square meters has not yet obtained the ownership certificate. The Company
undertakes that: (1) The ownership of the land use right of the above-mentioned land is clear with
no dispute and Guangzhou-Huizhou Expressway can legally occupy and use the
above-mentioned land; (2) Guangzhou-Huizhou Expressway will continue to effectively occupy
and use the relevant land before the ownership certificate is obtained and will not be materially
adversely affected thereby; (3) After the completion of this transaction if Guangdong Expressway
suffers losses as a shareholder of Guangzhou-Huizhou Expressway for losses suffered because
Guangzhou-Huizhou Expressway occupies and uses the above-mentioned land without ownership
certificate or engages in engineering construction on such land the Company will bear the actual
losses suffered by Guangdong Expressway. 2. The land occupied and used by
Commitment
Guangzhou-Huizhou Expressway with a total area of 12324867.92 square meters is currently
Guangdong on land and Normal
registered under the name of Guangdong Changda Highway Engineering Co. Ltd. (now renamed November 25 Permanently
Communicatio real estate of performanc
as "Poly Changda Engineering Co. Ltd." hereinafter referred to as "Changda Company") of 2020 effective
ns Group Guanghui e
which 8799336.79 square meters of land has obtained the ownership certificate and the other
Expressway
3525531.13 square meters of land has not yet obtained the ownership certificate. The Company
promises that after the completion of this transaction if Guangdong Expressway suffers losses as
a shareholder of Guangzhou-Huizhou Expressway and because Guanghui Expressway occupies
and uses the land registered under the name of Changda Company the Company will bear the
actual losses suffered by Guangdong Expressway. 3. The property ownership certificate has not
been obtained for the property with a total area of 72364.655 square meters occupied and used by
Guangzhou-Huizhou Expressway. The Company promises that: (1) The ownership of the
above-mentioned property without ownership certificate currently used by Guanghui Expressway
is clear with no dispute and Guangzhou-Huizhou Expressway can legally occupy and use the
above-mentioned property; (2) Guangzhou-Huizhou Expressway will continue to effectively
occupy and use the above-mentioned property before the property ownership certificate is
802021 Annual Report
obtained and will not be materially adversely affected; (3) After the completion of this
transaction if Guangdong Expressway suffers losses as a shareholder of Guangzhou-Huizhou
Expressway and because Guangzhou-Huizhou Expressway occupies and uses the
above-mentioned property without relevant property ownership certificate the Company will bear
the actual losses suffered by Guangdong Expressway.
1. The explanations commitment and information provided by the Company for this transaction
are authentic accurate and complete and there are no false records misleading statements or
major omissions. 2. The information provided by the Company to the intermediaries that provide
professional services such as auditing evaluation legal and financial consulting for this
transaction is authentic accurate and complete original written information or duplicate
Commitment information and the duplicate or photocopy of the information is consistent with its original
on authenticity information or original copy; The signatures and seals of all documents are authentic and the
Guangdong
accuracy and legal procedures required for signing and sealing have been fulfilled and legal authorization has Normal
Guanghui November 25 Permanently
completeness been obtained; There are no false records misleading statements or major omissions. 3. The performanc
Expressway 2020 effective
of the Company guarantees that it will provide timely information about this transaction in accordance e
Co. Ltd.information with relevant laws and regulations relevant regulations of China Securities Regulatory
provided Commission and Shenzhen Stock Exchange ensure the authenticity accuracy and completeness
of such information and guarantee that there are no false records misleading statements or major
omissions. 4. The Company shall bear individual and joint legal responsibilities for the
authenticity accuracy and completeness of the information provided or disclosed for this
exchange. In case of any loss caused to investors due to violation of the above commitments the
Company will bear corresponding liability for compensation according to law.In order to promote the smooth progress of the issue of shares the cash purchase of assets and the It continued
raising of matching funds (hereinafter referred to as "the major asset restructuring") approved by to push
Guangdong
Guangdong Expressway Development Co. Ltd. at its second extraordinary shareholders' meeting forward the Normal
Communicatio Other
in 2015 with regard to all the land and real estate (hereinafter referred to as "relevant land and April 272019 progress of performanc
n Group Co. commitment
real estate") owned by Guangdong Fokai Expressway Co. Ltd. (hereinafter referred to as "Fokai accreditation e
Ltd
Company") and Jingzhu Expressway Guangzhu Section Co. Ltd. (hereinafter referred to as and
"Guangzhu East Company") without ownership certificates (hereinafter referred to as "relevant completed
812021 Annual Report
land and real estate") disclosed in the report of Guangdong Expressway Development Co. Ltd. the
on issuing shares and paying cash to purchase assets and raising matching funds and related registration
transactions the company undertook to urge Fokai Company and Guangzhu East Company to go procedures
through the ownership registration formalities according to the following plan under the condition of relevant
that it is conducive to safeguarding the rights and interests of listed companies; Continued to push land and real
forward the progress of accreditation and completed the registration procedures of relevant land estate
and real estate ownership within three years after the relevant policies were clear and the relevant ownership
land and real estate met the conditions for handling the registration procedures of ownership in within three
accordance with the relevant laws and regulations and the requirements of the competent years after
government departments. the relevant
policies were
clear and the
relevant land
and real
estate met
the
conditions
for handling
the
registration
procedures
of
ownership
in
accordance
with the
relevant laws
and
regulations
and the
822021 Annual Report
requirements
of the
competent
government
departments
Commitments made upon
first issuance or refinance
Equity incentive
commitment
Other commitments made to
minority shareholders
Completed on time(Y/N) Yes
832021 Annual Report
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the
forecast period the company has assets or projects meet the original profit forecast made and the reasons
explained
√Applicable □ Not applicable
Current Current Reasons for
Earnings Original Original
forecast Actual not meeting
forecast asset Forecast Forecast end forecast forecast
performance performance the forecast
or project start time time disclosure disclosure
(RMB 10， (RMB 10， (if
name date index
000） 000） applicable)
Guanghui December Guanghui December
January 1 January 1
Expressway 31 111258.73 110544.44 Expressway 31
20202020
Co. Ltd. 2022 Co. Ltd. 2022
Commitments made by the company’s shareholders and counterparties in the reporting year’s operating performan
ce
□ Applicable √ Not applicable
The completion of performance commitments and its impact on the impairment test of goodwill
In 2020 Guangzhuo-Huizhou Company realized a net profit of RMB 780305000 with a net profit of RMB
769232600 after deducting non-recurring gains and losses. The actual profit was RMB 652477500 RMB
116755100 higher than the profit forecast and the profit forecast completion rate was 117.89%. In 2021
Guangzhou-Huizhou Company realized a net profit of RMB 1111564500 with a net profit of RMB
1105444400 after deducting non-recurring gains and losses the actual profit of RMB 7142900 was less than
the profit forecast by RMB 1112587300 and the profit forecast completion rate was 99.36%.By the end of 2021 the accumulated net profit (excluding non-recurring gains and losses) was RMB
1874677000 RMB 109612200 higher than the accumulated profit forecast of RMB 1765064800 and the
profit forecast completion rate was 106.21%.II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
None
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
None
IV. Explanation of the Board of Directors on the latest "Non-standard Audit Report"
□ Applicable √ Not applicable
842021 Annual Report
None
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of directors
and supervisory board
□ Applicable √ Not applicable
VI. Explain change of the accounting policy accounting estimate and measurement methods as compared
with the financial reporting of last year.√Applicable □ Not applicable
(I) Changes in accounting policies
1. On December 7 2018 the Ministry of Finance issued the Accounting Standards for Business Enterprises
No.21-Lease (Revised in 2018) (No.35 [2018] of the Ministry of Finance) (hereinafter referred to as "New Leasing
Standards"). The Sixteenth Meeting of the Ninth Board of Directors of the Company passed the resolution on
March 25 2021 and the Company implemented the aforementioned New Leasing Standards from January 1
2021 and changed relevant accounting policies according to the New Leasing Standards.
According to the New Leasing Standards for the contracts that existed before the first execution date the
Company re-evaluated whether they are leases or include leases. For the lease contract with the Company as the
lessee the Company only chose to adjust the cumulative impact of the lease contract that has not been completed
on January 1 2021. For the first implementation of the cumulative impact amount adjustment the retained
earnings and other related items in the financial statements at the beginning of the current period for first
implementation (that is January 1 2021) were not adjusted for the comparable period information. For the
operating lease on the first implementation date the lease liability was measured as the present value discounted
by the lessee based on the remaining lease payment according to the incremental loan interest rate on the first
implementation date.According to each lease option the Company measured the right-to-use assets according to the amount equal
to the lease liabilities and the necessary adjustment based on the prepaid rent. In accordance with the provisions of
Accounting Standards for Business Enterprises No.8-Impairment of Assets the impairment test of the right-to-use
assets was carried out and corresponding accounting treatment was conducted.For details please refer to Section X Financial Report VII Notes to Consolidated Financial Statement Items
29. Changes in Important Accounting Policies and Accounting Estimates.
2. As the participating companies Guangdong Yuepu Microfinance Co. Ltd. and Guoyuan Securities Co. Ltd.
implemented the new accounting standards to adjust their opening balance the Company adopted the equity
method to calculate and adjust the opening balance of the 2021 financial statements accordingly.For details please refer to Section X Financial Report VII Notes to Consolidated Financial Statement Items
29. Changes in Important Accounting Policies and Accounting Estimates.
3. According to relevant laws and regulations the Company implemented centralized and unified
management of the funds of member units through the internal settlement center and listed the funds in the "Other
current liabilities". On December 30 2021 the Ministry of Finance issued Interpretation No.15 of Accounting
Standards for Business Enterprises which clearly listed the above-mentioned collected funds in the item of "Other
payables" and the Company adjusted and presented them according to the requirements of Interpretation No.15.(II) Changes in accounting estimates
On June 28 2021 the Company held the Nineteenth (provisional) meeting of the Ninth Board of Directors
852021 Annual Report
which passed the Proposal on the Changes in Accounting Estimates agreed that the Company should change the
depreciation period of Sanbao-Shuikou section of Shenyang-Haikou National Expressway from June 1 2021 and
extend the depreciation period to June 14 2044. The future applicable law was adopted by the Company for this
matter and for the impact on the consolidated financial statements and the financial statements of the parent
company see Section X VIII. Financial Report Notes to Consolidated Financial Statement Item 29. Changes in
Important Accounting Policies and Accounting Estimates.VII.Explain change of the consolidation scope as compared with the financial reporting of last year.□Applicable √ Not applicable
None
VIII. Engagement/Disengagement of CPAs
CPAs currently engaged
Yong Tuo Certified Public Accountants (Special General
Name of the domestic CPAs
Partnership)
Remuneration for domestic accounting firm (Ten thousands
127.20
yuan)
Successive years of the domestic CPAs offering auditing
2
services
Name of CPA Shi Shaoyu Huang Zhiyan
Continuous years of audit services of certified public
1-2 years
accountants of domestic public accounting firms
Name of the Overseas CPAs（If any） None
Remumeration for overseas accounting firm (Ten thousands
0
yuan)（If any）
Successive years of the overseas CPAs offering auditing
None
services（If any）
Name of CPA（If any） None
Continuous years of audit services of certified public
None
accountants of overseas public accounting firms（if any）
Has the CPAs been changed in the current period
□Yes √ No
A detailed explanation of the change of employment and accounting firm
□ Applicable √ Not applicable
IX. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable
862021 Annual Report
X. Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
None
XI. Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
None
XII. Situation of Punishment and Rectification
□Applicable √ Not applicable
None
XIII. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XIV. Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
None
2. Related-party transactions arising from asset acquisition or sale
□Applicable √ Not applicable
None. Related-party transitions with joint investments
□Applicable √ Not applicable
None
4. Credits and liabilities with related parties
□Applicable √ Not applicable
None
5. Transactions with related finance company especially one that is controlled by the Company
√ Applicable □Not applicable
Deposit business
Related party Relationshi Maximum daily Deposit Beginning The amount of this period
p deposit limit interest rate balance Total amount is Ending
（10，000） range （10，000） Total deposit withdrawn for balanceamount
this （10，000）
(10000)
period(10000 )
872021 Annual Report
Controlled
Guangdong
by the
Communications
same 300000 1.725%-3.57% 103110.58 1041351.2 992361.43 152100.35
Group Finance
parent
Co. Ltd
company
Loan business
Related party Relationshi Beginning The amount of this period
p balance EndingLoan limit（10， Loant interest Total loan Total repayment
（10，000）
000 rate range amount of the amount of the
balance
）
current period current period （10，000）
（10，000）（10，000）Guangdong Controlled
Communications by the same
4000003.15%-3.75%20000200002000020000
Group Finance parent
Co. Ltd company
Credit extension or other financial services
Related party Relationship Business Total amount Actual amount
type （10，000） incurred（10，000）
Guangdong Communications Group Controlled by the same Credit
22000020000
Finance Co. Ltd parent company extension
6. Transactions between the financial company controlled by the Company and related parties
□ Applicable √Not applicable
There is no deposit loan credit or other financial business between the financial company controlled by the
Company and related parties.
7. Other significant related-party transactions
√ Applicable □Not applicable
1.The 15th (Provisional) Meeting of the Ninth Board of Directors and the First provisional Shareholders' General
Meeting of 2021 of the Company examined and adopted the Proposal on Signing the Supplementary Agreement
to the Financial Services Agreement with Guangdong Communications Group Finance Co. Ltd.
2.The 16th (Provisional) Meeting of the Ninth Board of Directors of the Company examined and adopted the
Proposal Concerning the Company Daily Associated Transactions Predicted of 2021.Agree on the predicted daily associated transactions for the company headquarters wholly-owned and holding
subsidiaries of 2021 whose amount in total is RMB 29.2285 million .
3.The16th (Provisional) Meeting of the Ninth Board of Directors of the Company examined and adopted the
Proposal on the signing of a contract for the entrusted operation and management from 2021 to 2023 of the
882021 Annual Report
Guangzhu North Section of the Guangdong Jingzhu Expressway between the Guangdong Jingzhu Expressway
Guangzhu North Section Co. Ltd and the Jingzhu Expressway Guangzhu North Section Co. Ltd." It’s agreed that
the Jingzhu Expressway Guangzhu North Section Co. Ltd and the Guangdong Jingzhu North Section Co. Ltd
sign the "Entrusted Operation and Management Contract for 2021-2023 for Guangdong Jingzhu Expressway
Guangzhu North Section" with the total contract amount not exceeding 75 million yuan.
4.The20th (Provisional) Meeting of the Ninth Board of Directors and the Second provisional Shareholders'
General Meeting of 2021 of the Company examined and adopted the Proposal the Proposal on increasing capital to
Guangdong Jiangzhong Expressway Co. Ltd. to participate in the investment in the
shenzhen-Cenxi Expressway Zhongshan Xinlong to Jiangmen Longwan Section Reconstruction and Expansion Pr
oject.
1. Agreed to the Company’s capital increase to Guangdong Jiangzhong Expressway Co. Ltd to participate in the i
nvestment in the Shenzhen-Cenxi Expressway Zhongshan Xinlong-Jiangmen Longwan Section Reconstruction an
d Expansion Project;
2. It’s agreed that the Company shall base on the estimated investment amount of 10.697 billion yuan in the preli
minary design of the reconstruction and expansion project approved by the Ministry of Transport and the project
capital ratio shall be 35% of the estimated investment amount of the project which is 3.744 billion yuan thus the
capital increase amount will be approximately RMB 562 million according to holding equity ratio that is the Com
pany holds 15% equity of Jiangzhong Expressway Co. Ltd.The website to disclose the interim announcements on significant related-party transactions
Date of disclosing provisional Description of the website for disclosing
Description of provisional announcement
announcement provisional announcements
Announcement of Resolutions of the 15th
(Provisional) Meeting of the Ninth Board of January 192021 www.cninfo.com.cn
Directors（Announcement No.:2021-001）
Announcement of related party transaction
January 192021 www.cninfo.com.cn
（Announcement No.:2021-002）
Announcement of Resolution of the First
Provisional Shareholder's Meeting of 2021 February 42021 www.cninfo.com.cn
（Announcement No.:2021-005）
Announcement of Resolutions of the 16th
(Provisional) Meeting of the Ninth Board of March 262021 www.cninfo.com.cn
Directors（Announcement No.:2021-008）
Estimates announcement of the Daily
Related Party Transaction of 2021 March 262021 www.cninfo.com.cn
（Announcement No.:2021-012）
Announcement on related transactions
concerning the entrusted operation of the March 262021 www.cninfo.com.cn
subsidiary（Announcement No.:2021-013）
Announcement of related party transaction
July 312021 www.cninfo.com.cn
（Announcement No.:2021-029）
892021 Annual Report
Announcement of Resolution of the Second
Provisional Shareholder's Meeting of 2021 August 172021 www.cninfo.com.cn
（Announcement No.:2021-030）
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.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
None
(2)Situation of Entrusted Loans
4. Other significant contract
□ Applicable √ Not applicable
XVI. Explanation on other significant events
□ Applicable √ Not applicable
None
902021 Annual Report
XIV. Significant event of subsidiary of the Company
□ Applicable √Not applicable
912021 Annual Report
VII. 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 ChangeAmount Proportio Capita
n lizatio
Bo
Share n of
nus Proportio
allot comm Other Subtotal Quantity
sha n
ment on
res
reserv
e fund
1.Shares with conditional
43925471721.01%0043925471721.01%
subscription
1.State-owned shares 410040696 19.61% 65042 65042 410105738 19.61%
2.State-owned legal person
217127381.04%00217127381.04%
shares
3.Other domestic shares 7501283 0.36% -65042 -65042 7436241 0.36%
Including ：Domestic
69650950.33%-101584-10158468635110.33%
Legal person shares
Domestic natural person
5361880.03%36542365425727300.03%
shares
4.Foreign shares 0 0.00% 0 0 0 0.00%
Including：Foreign legal
00.00%0000.00%
person shares
Foreign natural person
00.00%0000.00%
shares
II.Shares with
165155140978.99%00165155140978.99%
unconditional subscription
1.Common shares in RMB 1302902734 62.32% 0 0 1302902734 62.32%
2.Foreign shares in
34864867516.68%0034864867516.68%
domestic market
3.Foreign shares in foreign
00.00%0000.00%
market
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
922021 Annual Report
√ Applicable □Not applicable
1. During the reporting period 36 shareholders repaid 65042 consideration shares of Guangdong
Communications Group Co. Ltd. which were converted from "shares held by domestic legal person" and "shares
held by domestic natural person" to "shares held by the state".
2. During the reporting period 52020 shares held by domestic legal persons were converted into shares held
by domestic natural person.Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□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
Number of
Number of Restricted
Initial Increased Reason for Date of
Unrestricted Shares in the
Shareholder Name Restricted Restricted Restricted Restriction
Shares This End of the
Shares Shares Shares Removal
Term Term
This Term
The shares for
restricted sales
by share
reform has not
Guangdong Communication
410040696 65042 410105738 yet be subject Unknown
Group Co. Ltd.to the
procedures for
lifting the
restriction.Release of
Kong Lingbin and other 35
115275 -15478 99797 restrictions on 2022-01-19
shareholders
sales
Release of
Foshan Shunde Yunlong
369139 -49564 319575 restrictions on 2022-01-19
Development Co. Ltd.sales
932021 Annual Report
Total 410525110 0 0 410525110 -- --
II. Securities issue and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□ Applicable √ Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□ Applicable √ Not applicable
3.About the existing employees’ shares
□Applicable √Not applicable
942021 Annual Report
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Total
preference
shareholders
Total number Total with
of common The total numbershareholders at voting rights
shareholders of preferred sharthe end of the
at the end of eholders voting r
recovered at
49861 month from 48258 0 0
the ights restored at
end
the date of
period-end (if of last month
reporting disclosing the
any)(Note 8) before annual
period annual report
report
disclosed(if
any)(Note8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of
Proport share
ion of Number of Changes in Amount of Amount of pledged/froze
Nature of
Shareholders shares shares held at reporting restricted un-restricted n
shareholder
held period -end period shares held shares held State
Amo
（%） of
unt
share
Guangdong Communication State-owned 24.56
51348548065042410105738103379742
Group Co.Ltd legal person %
Guangdong Highway State-owned 22.30
466325020466325020
Construction Co. Ltd legal person %
Shangdong Expressway
State-owned
Investment Development Co. 9.68% 202429149 202429149
legal person
Ltd.Tibet Yingyue Investment State-owned
4.84%101214574101214574
Management Co. Ltd. legal person
Guangdong Provincial State-owned
2.53%529374911958222833355263
Freeway Co.Ltd. legal person
Domestic
Feng Wuchu natural 1.03% 21587971 794118 21587971
person shares
Overseas
HKSCC 0.93% 19529631 19126258 19529631
legal person
952021 Annual Report
Happy life insurance Co.Other 0.81% 16842478 16842478 16842478
Ltd.-Dividend
China Life Insurance Co.Ltd.－Dividend －Personal Other 0.76% 15862165 -25147190 15862165
dividend -005L-FH002 Shen
Overseas
Xinyue Co. Ltd. 0.63% 13201086 13201086
legal person
Strategic investor or general legal person
becoming top-10 ordinary shareholder due to None
rights issue (if any) (see note 3)
Guangdong Communication Group Co. Ltd. is the parent company of Guangdong
Highway Construction Co. Ltd.，Guangdong Provincial Freeway Co.Ltd. and Xinyue Co.Related or acting-in-concert parties among
Ltd. It is unknown whether there is relationship between other shareholders and whether
shareholders above
they are persons taking concerted action specified in the Regulations on Disclosure of
Information about Change in Shareholding of Shareholders of Listed Companies.Above shareholders entrusting or entrusted
None
with voting rights or waiving voting rights
Top 10 shareholders including the special
None
account for repurchase (if any) (see note 10)
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted Share type
Name of the shareholder shares held at the end of
the reporting period Share type Quantity
Guangdong Highway Construction Co.
466325020 RMB Common shares 466325020
Ltd
Shangdong Expressway Investment
202429149 RMB Common shares 202429149
Development Co. Ltd.Guangdong Communication Group Co.Ltd 103379742 RMB Common shares 103379742
Tibet Yingyue Investment Management
101214574 RMB Common shares 101214574
Co. Ltd.Guangdong Provincial Freeway Co.Ltd. 33355263 RMB Common shares 33355263
RMB Common shares 19129108
Feng Wuchu 21587971 Foreign shares placed in
2458863
domestic
HKSCC 19529631 RMB Common shares 19529631
Happy life insurance Co. Ltd.-Dividend 16842478 RMB Common shares 16842478
China Life Insurance Co. Ltd.－Dividend
15862165 RMB Common shares 15862165
－Personal dividend -005L-FH002 Shen
962021 Annual Report
Foreign shares placed in
Xinyue Co. Ltd. 13201086 13201086
domestic
Explanation on associated relationship or
Guangdong Communication Group Co. Ltd. is the parent company of Guangdong
consistent action among the top 10
Highway Construction Co. Ltd. ，Guangdong Provincial Freeway Co.Ltd. and Xinyueshareholders of non-restricted negotiable
Co. Ltd. It is unknown whether there is relationship between other shareholders and
shares and that between the top 10
whether they are persons taking concerted action specified in the Regulations on Disclosure
shareholders of non-restricted negotiable
of Information about Change in Shareholding of Shareholders of Listed Companies.shares and top 10 shareholders
Top 10 ordinary shareholders conducting
None
securities margin trading (if any) (see note 4)
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.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type: Legal person
Legal
Name of the Controlling represent Date of
Organization code Principal business activities
shareholder ative/Lea incorporation
der
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
Guangdong Communication Deng management traffic infrastructure construction
June 232000 91440000723838552J
Group Co. Ltd. Xiaohua 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; Value added
telecommunication services.Equity in other domestic and
foreign listed companies
held by the controlling Guangdong Communication Group Co. Ltd. holds 74.12% equity of Guangdong Yueyun Traffic Co. Ltd. a
shareholder by means of company listing H shares.control and mutual
shareholding in the reporting
972021 Annual Report
period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Name of the actual
representative Date of incorporation Organization code Principal business activities
controller
/Leader
As an ad hoc organization directly
under the Guangdong provincial
government it is authorized by
State-owned Assets
the Guangdong provincial
supervision and
government to represent the
administration
Guangdong provincial
Commission of Li Cheng June 262004 114400007583361658
government to perform the
Guangdong Provincial
investor's duties for the
People’s Government
supervised enterprises in
accordance with the law
specializing in the supervision of
state-owned assets.Equity of other
domestic/foreign listed As an ad hoc organization directly under the Guangdong provincial government it is authorized by the
company with share Guangdong provincial government to represent the Guangdong provincial government to perform the
controlling and share investor's duties for the supervised enterprises in accordance with the law specializing in the supervision
participation by of state-owned assets.controlling shareholder in
reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
982021 Annual Report
State-owned Assets Supervision and
Administration Commission the
people’s Government of Guangdong
Province
100%
Guangdong Communication Group
Co. Ltd.Guangdong Province Guangdong Highway Guangdong Province Guangdong Xinyue
Transportation Construction Co. Ltd. Expressway Co. Ltd. Co. Ltd.Development Co. Ltd
0.10%22.30%24.56%2.53%0.63%
Guangdong Provincial Expressway Development Co. Ltd
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the
company and its person acting in concert accounts for 80% of the number of shares held by the company
□Applicable √Not applicable
5.Particulars about other legal person shareholders with over 10% share held
√ Applicable □ Not applicable
Legal
person/pers
Register Main operation business or management
Legal person shareholder on in Date of foundation
capital activities
charge of
the unit
Highway bridge tunnel bridge traffic
infrastructure construction investment
Guangdong Highway Wang 10.8
April 161987 and management technical consulting
Construction Co. Ltd. Kangchen billion
leasing of road construction machinery;
sales of construction materials
992021 Annual Report
construction machinery equipment;
vehicle rescue services
(operated by the branch).
6.Situation of Share Limitation Reduction of Controlling Shareholders Actual Controllers Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
1002021 Annual Report
IV. Specific implementation of share repurchase during the reporting period
Progress in implementation of share repurchase
□ Applicable √Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□ Applicable √Not applicable
1012021 Annual Report
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
1022021 Annual Report
IX. Corporate Bond
√Applicable □ Not applicable
I. Enterprise bond
□ Applicable √ Not applicable
No such cases in the reporting period.II. Corporate bond
□ Applicable √ Not applicable
No such cases in the reporting period.
1032021 Annual Report
III. Debt financing instruments of non-financial enterprises
√Applicable □ Not applicable
1.Basic information
In RMB
Intere
Bond name Bond short name Bond code Issue day Value date Due day Bond balance st Servicing way Trading
rate
Due payments once a
Guangdong Provincial Expr year The principal an
19 Guangdong
essway Development Co. L d the last instalment int Interbank m
Expressway 101900252 February 272019 March 12019 March 12024 679025866.59 4%
td. 2019 first phase medium erest are paid in one lu arket
MTN001
-term notes mp sum on the redemp
tion date.Due payments once a
Guangdong Provincial Expr year The principal an
20 Guangdong
essway Development Co. L d the last instalment int Interbank m
Expressway 102000367 March 132020 March 172020 March 172025 748408219.99 3%
td. 2020 first phase medium erest are paid in one lu arket
MTN001
-term notes mp sum on the redemp
tion date.Circulation and transfer in the national inter-bank bond market its listing and circulation will be carried out in accordance with the relevant re
Applicable trading mechanism
gulations promulgated by the National Interbank Funding Center.Overdue and unpaid bonds
□ Applicable √ Not applicable
1042021 Annual Report
2. Trigger and implementation of option clauses and investor protection clauses of the issuer or investor
□ Applicable √ Not applicable
3.Information of intermediary agency
Contact
Name of
Name of intermediary person of
Name of bond project Office Address signing Tel
agency intermediar
accountant
y agency
Jianguomenwai Street
19 Guangdong China Lianhe Credit
Chaoyang District No Yang Ting 010-85679696
Expressway MTN001 Rating Co. Ltd.Beijing
Jianguomenwai Street
20 Guangdong China Lianhe Credit
Chaoyang District No Yang Ting 010-85679696
Expressway MTN001 Rating Co. Ltd.Beijing
Whether the above agency changes during the reporting period
□ Yes √No
4. Use of raised funds
In RMB
Whether it is
consistent with
Operation of Rectification of
the purpose use
Total amount of Unused special account for illegal use of
Name of bond project Used amount plan and other
raised funds amount raised funds (if raised funds (if
agreements
any) any)
stipulated in the
prospectus
19 Guangdong
Expressway 680000000.00 680000000.00 0.00 No No Yes
MTN001
20 Guangdong
Expressway 750000000.00 750000000.00 0.00 No No Yes
MTN001
The raised funds are used for construction projects
□ Applicable √ Not applicable
During the reporting period the Company changed the use of funds raised from the above bonds
□ Applicable √ Not applicable
1052021 Annual Report
5.Adjustment of credit rating results during the reporting period
□ Applicable √ Not applicable
6 The implementation and changes of guarantee debt repayment plan and other debt repayment guarantee
measures during the reporting period and their impact on the rights and interests of bond investors
□ Applicable √ Not applicable
IV. Convertible bond
□ Applicable √ Not applicable
No such cases in the reporting period.V. The loss within the scope of consolidated statements in the reporting period exceeded 10% of the net
assets at the end of the previous year
□ Applicable √ Not applicable
VI.Overdue interest-bearing debts except bonds at the end of the reporting period
□ Applicable √ Not applicable
VII.Whether there are any violations of rules and regulations during the reporting period
□ Yes √ No
VIII. Main accounting data and financial indicators of the Company in recent two years by the end of the
reporting period
In RMB10000
At the end of the reporting At the same time rate of
Items At the end of last year
period change
Current ratio 270.19% 118.46% 151.73%
Debt ratio 40.02% 48.24% -8.22%
Quick ratio 269.68% 118.35% 151.33%
At the same time rate of
Amount of this period Amount of last period
change
Net profit after deducting
169309.1670482.16140.22%
non-recurring profit and loss
EBITDA total debt ratio 72.70% 45.98% 26.72%
Time interest earned ratio 11.59 7.65 51.50%
1062021 Annual Report
Cash interest guarantee times 13.72 10.53 30.29%
EBITDATime interest earned
15.8611.3939.24%
ratio
Repayment of debt (%) 446.05% 115.11% 330.94%
Payment of interest (%) 104.94% 91.50% 13.44%
1072021 Annual Report
X. Financial Report
I. Audit report
Type of audit opinion Standard Unqualified audit opinion
Date of signature of audit report March 16，2022
Yong Tuo Certified Public Accountants (special general
Name of audit firm
partnership)
Names of the Certified Public Accountants Shi Shaoyu Huang Zhiyan
Auditors’ Report
Yongzhengshenzhi(2022)No.:
To all shareholders of Guangdong Provincial Expressway Development Co. Ltd.I. Opinion
We have audited the financial statements of Guangdong Provincial Expressway Development Co. Ltd.(hereinafter referred to as "the Company") which comprise the balance sheet as at December 31 2021 and the
income statement the statement of cash flows and the statement of changes in owners' equity for the year then
ended and notes to the financial statements.In our opinion the attached financial statements are prepared in all material respects in accordance with
Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at
December 31 2021 and its operating results and cash flows for the year then ended.II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on
these matters. We have identified the following items as key audit items that need to be communicated in the audit
report.Depreciation of fixed assets toll road
1. Item description
As described in "Notes III. 15 Fixed Assets to the Financial Statements" and "Notes V. 12 Fixed Assets to the
1082021 Annual Report
Financial Statements": the book value of the toll roads of Guangdong Expressway Group at the end of 2021 was
RMB 9905476302.88 accounting for 52.48% of the total consolidated assets; the depreciation amount of toll
roads in 2021 is RMB 1035681518.74 accounting for 53.68% of the consolidated operating cost. The
Guangdong Expressway Group toll road is depreciated according to the traffic flow method and the current
depreciation amount is calculated according to the proportion of the actual traffic flow in the current period to the
estimated remaining total traffic flow in the operation period. The total traffic flow during the operation period
refers to the forecast of the total traffic flow of Guangdong Expressway Group during the operation period which
is a major accounting estimate. Therefore we have determined the pricing and depreciation of the toll roads of
Guangdong Expressway Group as the key audit items.
2. Audit response
In response to the above key audit matter we have implemented the following main audit procedures:
(1)Understand evaluate and test the internal control of the management of the Company on the daily
management and accounting treatment of toll roads;
(2)Check whether the actual traffic flow data applied by Guangdong Expressway Company in the
depreciation calculation of toll roads is consistent with the actual traffic flow data obtained by Guangdong
Expressway Company from external service units;
(3)Evaluate the independence and professional competence of the third-party organization employed by the
Company that carries out traffic flow forecast;
(4) Understand the methods used in traffic flow forecast reports issued by third-party organizations to
forecast the traffic flow in the future and evaluate the reliability of traffic flow forecast reports by comparing the
predicted traffic flow for the past year with the actual traffic flow for that period;
(5) Recalculate the depreciation of roads and bridges to verify the accuracy of the depreciation amount of
roads and bridges in the financial statements.IV. Other information
The management of Guangdong Expressway Company is responsible for other information. Other
information includes the information covered in the 2020 annual report of Guangdong Expressway Company but
does not include the financial statement and our audit report.Our audit opinion on the financial statements does not cover other information and we do not issue any form
of verification conclusion on other information.In combination with our audit of the financial statements our responsibility is to read other information and
consider in such process whether other information is materially inconsistent with the financial statements or the
information we learned during the audit or whether there appears to be a material misstatement.Based on the work that we have already performed if we determine that other information contains material
misstatements we should report such fact. In this regard we have nothing to report.V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation and for designing
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements whether due to frauds or errors.In preparing the financial statements management of the Company is responsible for assessing the Company's
ability to continue as a going concern disclosing matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations or has no
realistic alternative but to do so.
1092021 Annual Report
Those charged with governance are responsible for overseeing the Company's financial reporting process.VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with ISAs we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or
error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error as fraud may involve collusion forgery omissions
misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the Company
and conclude based on the audit evidence obtained whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude
that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures
in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may
cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements including the disclosures
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements and bear all liability for the
opinion.We communicate with those charged with governance regarding among other matters the planned scope and
timing of the audit and significant audit matters including any significant deficiencies in internal control that we
identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when in extremely rare circumstances we determine that a matter should not be
1102021 Annual Report
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.Yong Tuo Certified Public Accountants Co. Ltd.(Special General Partnership)
Certified Public Accountant of China:
(project partner)
Certified Public Accountant of China:
Beijing China
March 152022
1112021 Annual Report
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.December 312021
In RMB
Items December 312021 December 312020
Current asset：
Monetary fund 2956404390.55 2847398003.89
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 159053399.87 168907517.56
Financing of receivables
Prepayments 5227647.09 3607538.01
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 13761124.23 60925367.64
Including：Interest receivable
Dividend receivable 1205472.90 2705472.90
Repurchasing of financial assets
Inventories 640079.66 53761.06
Contract assets 5286462.45 5452813.90
Assets held for sales
Non-current asset due within 1 year 2782974.53 51745.32
Other current asset 21213.96 27051.69
Total of current assets 3143177292.34 3086423799.07
1122021 Annual Report
Items December 312021 December 312020
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 2627130681.24 2382381165.60
Other equity instruments investment 1577175826.05 1737015528.29
Other non-current financial assets
Property investment 2889263.41 3110381.89
Fixed assets 10639272192.02 11540075929.69
Construction in progress 351130455.06 340611095.47
Production physical assets
Oil & gas assets
Use right assets 14100325.01 Not applicable
Intangible assets 268504176.43 302381356.52
Development expenses
Goodwill
Long-germ expenses to be amortized 2103750.00 3462122.00
Deferred income tax asset 225243885.27 330755418.39
Other non-current asset 25038952.48 22361861.19
Total of non-current assets 15732589506.97 16662154859.04
Total of assets 18875766799.31 19748578658.11
Current liabilities
Short-term loans 200192500.00
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 264487139.44 369773342.71
Advance receipts 10660208.51 11309007.41
Contract liabilities 22000.00 309734.51
1132021 Annual Report
Items December 312021 December 312020
Selling of repurchased financial
assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 19213631.91 16726198.13
Tax payable 164612512.99 217748392.78
Other account payable 177970483.76 1512619359.78
Including：Interest payable
Dividend payable 22941943.24 22262804.39
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1
525644368.26266328017.47
year
Other current liability 726336.48 648581.64
Total of current liability 1163336681.35 2595655134.43
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 4572621200.00 4977438800.00
Bond payable 1427434086.58 1426488336.65
Including：preferred stock
Sustainable debt
Lease liability 2773459.76 Not applicable
Long-term payable 3461832.74 40406172.37
Long-term remuneration payable to
staff
Expected liabilities
Deferred income 69228093.11 89170569.64
Deferred income tax liability 315922287.64 387103060.74
Other non-current liabilities
Total non-current liabilities 6391440959.83 6920606939.40
Total of liability 7554777641.18 9516262073.83
Owners’ equity
1142021 Annual Report
Items December 312021 December 312020
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 713460518.49 645969210.48
Less：Shares in stock
Other comprehensive income 192177466.34 302895877.65
Special reserve
Surplus reserves 1225375330.56 1167785965.63
Common risk provision
Retained profit 4760618543.78 3725679319.35
Total of owner’s equity belong to the
8982437985.177933136499.11
parent company
Minority shareholders’ equity 2338551172.96 2299180085.17
Total of owners’ equity 11320989158.13 10232316584.28
Total of liabilities and owners’ equity 18875766799.31 19748578658.11
Legal Representative: Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
1152021 Annual Report
2.Parent Company Balance Sheet
In RMB
Items December 312021 December 312020
Current asset：
Monetary fund 1860836127.30 1781764519.09
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 24208692.49 27004827.41
Financing of receivables
Prepayments 4311419.00 2181215.03
Other account receivable 6885982.60 54148114.53
Including：Interest receivable
Dividend receivable 1205472.90 2705472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year 278562652.27 256279340.60
Other current asset 11067.41 27051.69
Total of current assets 2174815941.07 2121405068.35
Non-current assets：
Creditor's right investment 287903684.98
Other creditor's right investment
Long-term receivable
Long term share equity investment 5792610802.46 5529362536.53
Other equity instruments investment 1577175826.05 1737015528.29
Other non-current financial assets
Property investment 2637125.16 2858243.64
Fixed assets 5707608552.14 6245462940.39
Construction in progress 43594243.12 43086545.58
Production physical assets
Oil & gas assets
Use right assets 12611748.50 Not applicable
Intangible assets 140756147.03 150582241.22
1162021 Annual Report
Items December 312021 December 312020
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 218624401.07 322365911.10
Other non-current asset 14434283.48 7089990.48
Total of non-current assets 13510053129.01 14325727622.21
Total of assets 15684869070.08 16447132690.56
Current liabilities
Short-term loans 200192500.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 105685908.27 105919984.52
Advance receipts 250984.75
Contract Liabilities
Employees’ wage payable 6825973.81 6472802.81
Tax payable 7330856.79 9165801.86
Other account payable 690062820.89 1431814861.38
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due within 1
456996690.91190331701.48
year
Other current liability 37299.97 539618124.00
Total of current liability 1267190535.39 2483515776.05
Non-current liabilities：
Long-term loan 4058096200.00 4389653800.00
Bond payable 1427434086.58 1426488336.65
Including：preferred stock
Sustainable debt
Lease liability 2445724.58 Not applicable
Long-term payable 3461832.74 40406172.37
Long-term remuneration payable to
staff
1172021 Annual Report
Items December 312021 December 312020
Expected liabilities
Deferred income 10120879.64 13403327.12
Deferred income tax liability 66399854.20 105636866.50
Other non-current liabilities
Total non-current liabilities 5567958577.74 5975588502.64
Total of liability 6835149113.13 8459104278.69
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 934851285.51 938969546.79
Less：Shares in stock
Other comprehensive income 192177466.34 302895877.65
Special reserve
Surplus reserves 1045403063.00 987813698.07
Retained profit 4586482016.10 3667543163.36
Total of owners’ equity 8849719956.95 7988028411.87
Total of liabilities and owners’ equity 15684869070.08 16447132690.56
3.Consolidated Income statement
In RMB
Items 2021 2020
I. Income from the key business 5288057677.93 3790348876.26
Incl：Business income 5288057677.93 3790348876.26
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2414254320.96 2106157423.78
Incl：Business cost 1929512025.56 1662223696.13
Interest expense
Fee and commission paid
Insurance discharge payment
1182021 Annual Report
Items 2021 2020
Net claim amount paid
Net amount of withdrawal of insurance
contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 26151601.45 23401929.49
Sales expense
Administrative expense 223605442.46 203945119.58
R & D costs 13270938.73 404303.70
Financial expenses 221714312.76 216182374.88
Including：Interest expense 282653629.93 264407174.38
Interest income 64220887.86 50618519.70
Add: Other income 17600355.16 12819409.84
Investment gain（“-”for loss） 277061254.36 171366835.55
Incl: investment gains from affiliates 227004893.87 114517784.14
Financial assets measured at
amortized cost cease to be recognized
as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Credit impairment loss -1935337.47 -2457808.51
Impairment loss of assets -2889394.16 -1231918.94
Assets disposal income 3017370.44
III. Operational profit（“-”for loss） 3166657605.30 1864687970.42
Add ：Non-operational income 17975495.18 11749841.36
Less: Non-operating expense 22483385.64 20642932.77
IV. Total profit(“-”for loss) 3162149714.84 1855794879.01
Less：Income tax expenses 735365014.56 491409872.94
V. Net profit 2426784700.28 1364385006.07
(I) Classification by business
continuity
1.Net continuing operating profit 2426784700.28 1364385006.07
2.Termination of operating net profit
1192021 Annual Report
Items 2021 2020
(II) Classification by ownership
1.Net profit attributable to the owners
1700406981.99867842774.78
of parent company
2.Minority shareholders’ equity 726377718.29 496542231.29
VI. Net after-tax of other
-110718411.31-79297467.25
comprehensive income
Net of profit of other comprehensive in
-110718411.31-79297467.25
come attributable to owners of the pare
nt company.（I）Other comprehensive income
items that will not be reclassified into
-120434499.12-74105307.36
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under t
he equity method investee can not be re
classified into profit or loss.
3. Changes in the fair value of
-120434499.12-74105307.36
investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
5.Other（II）
Other comprehensive income that will 9716087.81 -5192159.89
be reclassified into profit or loss.
1.Other comprehensive income under t
9716087.81-5192159.89
he equity method investee can be reclas
sified into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3. Other comprehensive income arising
from the reclassification of financial
assets
4.Allowance for credit impairments in
investments in other debt obligations
1202021 Annual Report
Items 2021 2020
5. Reserve for cash flow hedges
6.Translation differences in currency fi
nancial statements
7.Other
Net of profit of other comprehensive in
come attributable to Minority
shareholders’ equity
VII. Total comprehensive income 2316066288.97 1285087538.82
Total comprehensive income
attributable to the owner of the parent 1589688570.68 788545307.53
company
Total comprehensive income
726377718.29496542231.29
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.81 0.42
(II)Diluted earnings per share 0.81 0.42
The current business combination under common control the net profits of the combined party before achieved ne
t profit of RMB 0.00 last period the combined party realized RMB0.00.Legal Representative: Zheng Renfa
General Manager：Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
4. Income statement of the Parent Company
In RMB
Items 2021 2020
I. Income from the key business 1469364434.37 975440382.58
Incl：Business cost 718634183.97 655670622.07
Business tax and surcharge 8211382.64 8077542.21
Sales expense
Administrative expense 117865388.31 111210597.86
R & D expense 6788937.00
Financial expenses 235894975.56 208439841.94
Including：Interest expenses 274934433.28 250230473.17
Interest income 39948340.40 40734373.10
1212021 Annual Report
Items 2021 2020
Add：Other income 4070892.76 3249141.80
Investment gain（“-”for loss） 1316869007.46 1009976324.53
Including: investment gains from
221639163.75343597391.91
affiliates
Financial assets measured at
amortized cost cease to be recognized
as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss 93582.00 -93582.00
Impairment loss of assets -2889394.16
Assets disposal income
II. Operational profit（“-”for loss） 1700113654.95 1005173662.83
Add ：Non-operational income 1683906.22 3221547.75
Less：Non -operational expenses 13481250.02 12774779.05
III. Total profit(“-”for loss) 1688316311.15 995620431.53
Less：Income tax expenses 103909700.85 63291303.29
IV. Net profit 1584406610.30 932329128.24
1.Net continuing operating profit 1584406610.30 932329128.24
2.Termination of operating net profit
V. Net after-tax of other
-110718411.31-79297467.25
comprehensive income
（I）Other comprehensive income
items that will not be reclassified into
-120434499.12-74105307.36
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit
plans of changes in net debt or net ass
ets
2.Other comprehensive income under
the equity method investee can not b
e reclassified into profit or loss.
3. Changes in the fair value of
investments in other equity -120434499.12 -74105307.36
instruments
4. Changes in the fair value of the
1222021 Annual Report
Items 2021 2020
company’s credit risks
5.Other
(II)Other comprehensive income that 9716087.81 -5192159.89
will be reclassified into profit or loss
1.Other comprehensive income under
9716087.81-5192159.89
the equity method investee can be re
classified into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3. Other comprehensive income
arising from the reclassification of
financial assets
4.Allowance for credit impairments
in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency
financial statements
7.Other
VI. Total comprehensive income 1473688198.99 853031660.99
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items 2021 2020
I.Cash flows from operating activities
Cash received from sales of goods or
5447910740.153866637428.50
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central
bank
1232021 Annual Report
Items 2021 2020
Net increase of inter-bank loans from
other financial bodies
Cash received against original
insurance contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Cash received from interest
commission charge and commission
Net increase of inter-bank fund
received
Net increase of repurchasing business
Net cash received by agent in
securities trading
Tax returned
Other cash received from business
126417264.96184856181.58
operation
Sub-total of cash inflow 5574328005.11 4051493610.08
Cash paid for purchasing of
417377507.94391854339.69
merchandise and services
Net increase of client trade and
advance
Net increase of savings in central
bank and brother company
Cash paid for original contract claim
Net increase in financial assets
held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest processing
fee and commission
Cash paid to staffs or paid for staffs 490684230.89 384566222.40
Taxes paid 901811223.79 553265616.61
Other cash paid for business activities 94710321.33 85620190.33
Sub-total of cash outflow from
1904583283.951415306369.03
business activities
1242021 Annual Report
Items 2021 2020
Net cash generated from /used in
3669744721.162636187241.05
operating activities
II. Cash flow generated by investing
Cash received from investment
45000000.00210000000.00
retrieving
Cash received as investment gains 174741274.88 162479782.83
Net cash retrieved from disposal of
fixed assets intangible assets and 4787323.86 68875.00
other long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow due to
224528598.74372548657.83
investment activities
Cash paid for construction of fixed
assets intangible assets and 513663936.74 660012394.04
other long-term assets
Cash paid as investment 134650000.00 224910442.24
Net increase of loan against pledge
Net cash received from subsidiaries
and other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
648313936.74884922836.28
investment activities
Net cash flow generated by
-423785338.00-512374178.45
investment
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as
investment from minor shareholders
Cash received as loans 2124930000.00 2169880000.00
Other financing –related cash
140145195.5089083500.00
received
Sub-total of cash inflow from
2265075195.502258963500.00
financing activities
1252021 Annual Report
Items 2021 2020
Cash to repay debts 2503707200.00 1730365000.00
Cash paid as dividend profit or
1667198772.331588108152.77
interests
Including: Dividend and profit paid
755677776.30380689946.00
by subsidiaries to minor shareholders
Other cash paid for financing
1230750884.931272832461.00
activities
Sub-total of cash outflow due to
5401656857.264591305613.77
financing activities
Net cash flow generated by financing -3136581661.76 -2332342113.77
IV. Influence of exchange rate
alternation on cash and cash -371334.74 1728690.91
equivalents
V.Net increase of cash and cash
109006386.66-206800360.26
equivalents
Add: balance of cash and cash
2846176803.893052977164.15
equivalents at the beginning of term
VI ..Balance of cash and cash
2955183190.552846176803.89
equivalents at the end of term
6. Cash Flow Statement of the Parent Company
In RMB
Items 2021 2020
I.Cash flows from operating activities
Cash received from sales of goods or
1512002307.36993839736.20
rending of services
Tax returned
Other cash received from business
139579001.2293504920.38
operation
Sub-total of cash inflow 1651581308.58 1087344656.58
Cash paid for purchasing of
85431635.37103008692.77
merchandise and services
Cash paid to staffs or paid for staffs 156876478.03 127409377.73
Taxes paid 55685419.35 38537660.12
Other cash paid for business activities 89308303.12 345450155.26
Sub-total of cash outflow from 387301835.87 614405885.88
1262021 Annual Report
business activities
Net cash generated from /used in
1264279472.71472938770.70
operating activities
II. Cash flow generated by investing
Cash received from investment
310000000.00150000000.00
retrieving
Cash received as investment gains 1222810553.86 891162907.16
Net cash retrieved from disposal of
fixed assets intangible assets and 1359500.00 7700.00
other long-term assets
Net cash received from disposal of
4694628.72
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow due to
1534170053.861045865235.88
investment activities
Cash paid for construction of fixed
assets intangible assets and 145749738.08 270834718.98
other long-term assets
Cash paid as investment 1380489292.00 1486620726.24
Net cash received from subsidiaries
and other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
1526239030.081757455445.22
investment activities
Net cash flow generated by
7931023.78-711590209.34
investment
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 2124930000.00 1809290000.00
Other financing –related ash received
Sub-total of cash inflow from
2124930000.001809290000.00
financing activities
Cash to repay debts 2422947200.00 1479775000.00
Cash paid as dividend profit or
886140438.611101090057.96
interests
Other cash paid for financing 8609914.93 1122177.00
1272021 Annual Report
activities
Sub-total of cash outflow due to
3317697553.542581987234.96
financing activities
Net cash flow generated by financing -1192767553.54 -772697234.96
IV. Influence of exchange rate
alternation on cash and cash -371334.74 1728690.91
equivalents
V.Net increase of cash and cash
79071608.21-1009619982.69
equivalents
Add: balance of cash and cash
1780543319.092790163301.78
equivalents at the beginning of term
VI ..Balance of cash and cash
1859614927.301780543319.09
equivalents at the end of term
1282021 Annual Report
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
2021
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Spec Com
Less: MinorItems
Su Other ializ mon Total of owners’Share Capital Shares Surplus Oth shareholders’
Prefer stai Comprehensi ed risk Retained profit Subtotal equityCapital reserves in reserves er equity
red na Other ve Income reser provstock
stock ble ve ision
de
bt
I.Balance at the end of 2090806126. 6459692 7933136499.
302895877.651167785965.633725679319.352299180085.1710232316584.28
last year 00 10.48 11
Add: Change of
546190.04546190.04546190.04
accounting policy
Correcting of previous
errors
Merger of entities under
common control
Other
II.Balance at the
2090806126.64596927933682689.
beginning of current 302895877.65 1167785965.63 3726225509.39 2299180085.17 10232862774.32
0010.4815
year
1292021 Annual Report
2021
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Spec Com
Less: MinorItems
Su Other ializ mon Total of owners’Share Capital Shares Surplus Oth shareholders’
Prefer stai Comprehensi ed risk Retained profit Subtotal equityCapital reserves in reserves er equity
red na Other ve Income reser provstock
stock ble ve ision
de
bt
III.Changed in the 6749130 1048755296.-110718411.3157589364.931034393034.3939371087.791088126383.81
current year 8.01 02
（1）Total 1589688570.
-110718411.311700406981.99726377718.292316066288.97
comprehensive income 68（II）Investment or
decreasing of capital by
owners
1．Ordinary Shares inves
ted by shareholders
2．Holders of other equit
y instruments invested c
apital
3．Amount of shares paid
and accounted as
owners’ equity
4．Other
1302021 Annual Report
2021
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Spec Com
Less: MinorItems
Su Other ializ mon Total of owners’Share Capital Shares Surplus Oth shareholders’
Comprehensi ed risk Retained profit Subtotal equity
Capital Prefer stai reserves in reserves er equity
red na Other ve Income reser provstock
stock ble ve ision
de
bt
-608424582.6（III）Profit allotment 57589364.93 -666013947.60 -755677776.30 -1364102358.97
7
1.Providing of surplus
57589364.93-57589364.93
reserves
2.Providing of common
risk provisions
3．Allotment to the -608424582.6
-608424582.67-755677776.30-1364102358.97
owners (or shareholders) 7
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
1312021 Annual Report
2021
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Spec Com
Less: MinorItems Other ializ mon Total of owners’
Share Su Capital Shares Surplus Oth shareholders’
Prefer stai Comprehensi ed risk Retained profit Subtotal equityCapital reserves in reserves er equity
red na Other ve Income reser provstock
stock ble ve ision
de
bt
shares)
3．Making up losses by
surplus reserves.
4.Change amount of
defined benefit plans
that carry forward
Retained earnings
5．Other comprehensive
income carry-over
retained earnings
6．Other
(V). Special reserves
1. Provided this year
2．Used this term（VI）Other 6749130 67491308.01 68671145.80 136162453.81
1322021 Annual Report
2021
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Spec Com
Less: MinorItems
Su Other ializ mon Total of owners’Share Capital Shares Surplus Oth shareholders’
Prefer stai Comprehensi ed risk Retained profit Subtotal equityCapital reserves in reserves er equity
red na Other ve Income reser provstock
stock ble ve ision
de
bt
8.01
IV. Balance at the end of 2090806126. 7134605 8982437985.
192177466.341225375330.564760618543.782338551172.9611320989158.13
this term 00 18.49 17
1332021 Annual Report
Amount in last year
In RMB
2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Pr
Su Spec Com
Items ef Less:
Minor
Other ializ mon Total of owners’sta
err Ot Capital Share Surplus Oth
shareholders’
Share Capital Comprehensi ed risk Retained profit Subtotal equityin
ed he reserves s in reserves er
equity
ab ve Income reser prov
st r stock
le ve ision
oc
de
k
bt
I.Balance at the end
2090806126.003094017129.31382193344.901074553052.813915790810.7610557360463.782139676884.8812697037348.66
of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
2090806126.003094017129.31382193344.901074553052.813915790810.7610557360463.782139676884.8812697037348.66
beginning of current
1342021 Annual Report
2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Pr
Su Spec Com Minor
Items ef Less:
sta Other ializ mon
Total of owners’
err Ot Capital Share Surplus Oth
shareholders’
Share Capital in Comprehensi ed risk Retained profit Subtotal
equity
equity
ed he reserves s in reserves er
ab ve Income reser prov
st r stock
le ve ision
oc
de
k
bt
year
III.Changed in the
-2448047918.83-79297467.2593232912.82-190111491.41-2624223964.67159503200.29-2464720764.38
current year
（1）Total
comprehensive -79297467.25 867842774.78 788545307.53 496542231.29 1285087538.82
income（II）Investment or
decreasing of 45432585.00 43650915.00 89083500.00
capital by owners
1．Ordinary Shares i
nvested by sharehol
ders
2．Holders of other
equity instruments i
nvested capital
3．Amount of shares
1352021 Annual Report
2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Pr
Su Spec ComLess: MinorItems ef
sta Other ializ mon
Total of owners’
err Ot Capital Share Surplus Oth
shareholders’
Share Capital in Comprehensi ed risk Retained profit Subtotal
equity
ed he reserves s in reserves er
equity
ab ve Income reser prov
st r stock
le ve ision
oc
de
k
bt
paid and accounted
as owners’ equity
4．Other 45432585.00 43650915.00 89083500.00（III）Profit -1057954266.1
93232912.82-964721353.37-380689946.00-1345411299.37
allotment 9
1.Providing of
93232912.82-93232912.82
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or -882320185.17 -882320185.17 -380689946.00 -1263010131.17
shareholders)
4．Other -82401168.20 -82401168.20 -82401168.20
(IV) Internal
1362021 Annual Report
2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Pr
Su Spec Com Minor
Items ef Less: Other ializ mon Total of owners’sta
err Ot Capital Share Surplus Oth
shareholders’
Share Capital in Comprehensi ed risk Retained profit Subtotal
equity
reserves s in reserves er equityed he
ab ve Income reser prov
st r stock
le ve ision
oc
de
k
bt
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
1372021 Annual Report
2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Pr
Su Spec Com
Items ef Less:
Minor
Total of owners’
sta Other ializ monCapital Share Surplus Oth shareholders’
Share Capital err Otin Comprehensi ed risk Retained profit Subtotal
equity
ed he reserves s in reserves er
equity
ab ve Income reser prov
st r stock
le ve ision
oc
de
k
bt
comprehensive
income carry-over
retained earnings
6．Other
(V). Special
reserves
1. Provided this
year
2．Used this term（VI）Other -2448047918.83 -2448047918.83 43650915.00 -2404397003.83
IV. Balance at the
2090806126.00645969210.48302895877.651167785965.633725679319.357933136499.112299180085.1710232316584.28
end of this term
1382021 Annual Report
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
2021
Other Equity
instrument
Speci
Items Less: Other Oalized Total of owners’
Share capital Prefer Susta Oth Capital reserves Shares Comprehensive Surplus reserves Retained profit th
red inabl reserv equity
er in stock Income er
stock e e
debt
I.Balance at the end of last
2090806126.00938969546.79302895877.65987813698.073667543163.367988028411.87
year
Add: Change of accounting
546190.04546190.04
policy
Correcting of previous errors
Other
II.Balance at the beginning of
2090806126.00938969546.79302895877.65987813698.073668089353.407988574601.91
current year
III.Changed in the current
-4118261.28-110718411.3157589364.93918392662.70861145355.04
year
（I）Total comprehensive
-110718411.311584406610.301473688198.99
income
(II) Investment or decreasing
of capital by owners
1．Ordinary Shares invested b
1392021 Annual Report
2021
Other Equity
instrument
Speci
Items Less: Other O
Prefer Susta alized Total of owners’Share capital Oth Capital reserves Shares Comprehensive Surplus reserves Retained profit th
red inabl reserv equity
er in stock Income er
stock e e
debt
y shareholders
2．Holders of other equity inst
ruments invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other（III）Profit allotment 57589364.93 -666013947.60 -608424582.67
1.Providing of surplus
57589364.93-57589364.93
reserves
2．Allotment to the owners (or
-608424582.67-608424582.67
shareholders)
3．Other
(IV) Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
1402021 Annual Report
2021
Other Equity
instrument
Speci
Items Less: Other O
Prefer Susta alized Total of owners’Share capital Oth Capital reserves Shares Comprehensive Surplus reserves Retained profit th
red inabl reserv equity
er in stock Income er
stock e e
debt
3．Making up losses by
surplus reserves.
4.Change amount of defined
benefit plans that carry
forward
Retained earnings
5．Other comprehensive
income carry-over retained
earnings
6．Other
(V) Special reserves
1. Provided this year
2．Used this term（VI）Other -4118261.28 -4118261.28
IV. Balance at the end of this
2090806126.00934851285.51192177466.341045403063.004586482016.108849719956.95
term
1412021 Annual Report
Amount in last year
In RMB
2020
Other Equity
instrument
Specia
Items Less: Other lized Ot Total of owners’
Share Capital Prefer Sust Ot Capital reserves Shares Comprehensive Surplus reserves Retained profitreserv her equity
red aina he in stock Income e
stock ble r
debt
I.Balance at the end of last
2090806126.002974458696.93382193344.90894580785.253710584722.6810052623675.76
year
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of
2090806126.002974458696.93382193344.90894580785.253710584722.6810052623675.76
current year
III.Changed in the current year -2035489150.14 -79297467.25 93232912.82 -43041559.32 -2064595263.89
（I）Total comprehensive
-79297467.25932329128.24853031660.99
income
(II) Investment or decreasing
of capital by owners
1．Ordinary Shares invested b
y shareholders
2．Holders of other equity instr
1422021 Annual Report
2020
Other Equity
instrument
Specia
Items Less: Other lized Ot Total of owners’
Share Capital Prefer Sust Ot Capital reserves Shares Comprehensive Surplus reserves Retained profitreserv her equity
red aina he in stock Income e
stock ble r
debt
uments invested capital
3.Amount of shares paid and
accounted as owners’ equity
4．Other（III）Profit allotment 93232912.82 -975553097.99 -882320185.17
1.Providing of surplus
93232912.82-93232912.82
reserves
2．Allotment to the owners (or
-882320185.17-882320185.17
shareholders)
3．Other
(IV) Internal transferring of
182410.43182410.43
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.
1432021 Annual Report
2020
Other Equity
instrument
Specia
Items Less: Other lized Ot Total of owners’
Share Capital Prefer Sust Ot Capital reserves Shares Comprehensive Surplus reserves Retained profitreserv her equity
red aina he in stock Income e
stock ble r
debt
4.Change amount of defined
benefit plans that carry
forward
Retained earnings
5．Other comprehensive
income carry-over retained
earnings
6．Other 182410.43 182410.43
(V) Special reserves
1. Provided this year
2．Used this term（VI）Other -2035489150.14 -2035489150.14
IV. Balance at the end of this
2090806126.00938969546.79302895877.65987813698.073667543163.367988028411.87
term
1442021 Annual Report
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.
1452021 Annual Report
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
222001.
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”.Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to Parties
such as Guangdong Provincial Expressway Co. Ltd to Purchase Assets and Raise Matching Funds by Guangdong
Provincial Expressway Development Co. Ltd in June 2016 the company issued 33355263 shares and paid RMB
803.50 million to Guangdong Provincial Expressway Co. Ltd for purchasing the 25% stake of Guangdong
Provincial Fokai Expressway Co. Ltd held by Guangdong Provincial Expressway Co. Ltd; and issued
466325020 shares to Guangdong Provincial Highway Construction Co. Ltd for purchasing the 100% stake of
Guangzhou Guangzhu Traffic Investment Management Co. Ltd held by Guangdong Provincial Highway
Construction Co. Ltd. On June 21 2016 the company directionally issued 334008095 A-shares to Yadong
Fuxing Yalian Investment Co.Ltd Tibet Yinyue Investment Management Co.Ltd and Guangfa Securities
Co.Ltd. The issuance of shares have been registered on July 7 2016 the new shares will be listed on July 8
2016.
2. Company's registered place and headquarters address
Company name：Guangdong Provincial Expressway Development Co. Ltd.Registration placeNo.85 Baiyun Road Yuexiu District Guangzhou.Headquarters Office ：45-46/F Litong Plaza No.32 Zhujiang East Road Zhujiang New City Tihe Disrtict
Guangzhou
3. Business nature and main business activities
Industry and main products of the company: highway management and maintenance.General business items: investment construction charging maintenance and service management of
expressways grade roads and bridges; Automobile rescue service maintenance and cleaning; Parking lot charges;
Design production release and agency of all kinds of advertisements at home and abroad; Land development
along the highway; Warehousing business; Intelligent transportation technology research and development and
service; Equity investment management and consultation. (Projects that must be approved according to law can
be operated only after being approved by relevant departments).The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai ExpresswayJingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangzhou
1462021 Annual Report
Guanghui Expressway Co. Ltd.. Guangdong Jiangzhong Expressway Co.Ltd. Zhaoqing Yuezhao Expressway
Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Technology
Petty Loan Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd Hunan Lianzhi
Technology Co. Ltd.and SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.
4. Scope and changes of consolidated financial statements in the current period
(1) Scope of current consolidated financial statements
The consolidated scope of the current financial statements invovles Guangdong Expressway Technology
Investment Co. Ltd. Yuegao Capital Holding (Guangzhou) Co. Ltd. its holding subsidiaries Guangfo
Expressway Co. Ltd. Jingzhu Expressway Guangzhu Section Co. Ltd. and Guanghui Expressway Co. Ltd..
(2) Changes in the scope of consolidated financial statements in the current period
None
5. Approval and submission date of financial report
The financial statements have been authorized for issuance by the 27th meeting of the Ninth Board of Directors of
the Group on March 15 2022.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
Specific accounting policies and accounting estimates are indicated as follows:
None
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company are recognized and measured in accordance with the regulations in
1472021 Annual Report
the Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial
position business result and cash flow of the Company. In addition the financial statements of the Company
comply in all material respects with the revised disclosing requirements for financial statements and the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15—General
Provisions on Financial Reports (2014 Revision) issued by China Securities Regulatory Commission (CSRC) in
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
1482021 Annual Report
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
1492021 Annual Report
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
1502021 Annual Report
date is included in the consolidated cash flow statement.When the control right of the original subsidiary is lost due to the disposal of part of the equity investment or
other reasons the remaining equity investment after disposal shall be re-measured according to its fair value on
the date of loss of control right. The sum of the consideration obtained from the disposal of equity and the fair
value of the remaining equity minus the difference between the share of the original subsidiary's net assets
calculated continuously from the purchase date and the sum of goodwill calculated according to the original
shareholding ratio is included in the investment income in the current period when the control right is lost. Other
comprehensive income related to the original subsidiary's equity investment is converted into current investment
income when the control right is lost except for other comprehensive income generated by the investee's
re-measurement of net liabilities or changes in net assets of the set income plan.The difference between the newly acquired long-term equity investment due to the purchase of minority
shares and the identifiable net assets share of subsidiaries calculated according to the increased shareholding ratio
and the difference between the disposal price obtained from partial disposal of equity investment in subsidiaries
and the net assets share of subsidiaries corresponding to the disposal of long-term equity investment are used to
adjust the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the
capital reserve is insufficient to offset the retained earnings will be adjusted.
(4) Processing of consolidated statements from step-by-step disposal of equity to loss of control rights
If the transactions that dispose of the equity investment in subsidiaries until the loss of control rights are of a
package transaction the transactions shall be treated as transactions that dispose of subsidiaries and lose control
rights; However the difference between the disposal price and the share of the subsidiary's net assets related to the
disposal investment before the loss of control right is recognized as other comprehensive income in the
consolidated financial statements which will be transferred to the current profit and loss when the control right is
lost except for other comprehensive income arising from the re-measurement of the net liabilities or changes in
net assets of the set income plan by the investee. If it is not a package transaction before the loss of control the
difference between the disposal price and the corresponding net assets continuously calculated by the subsidiary
from the purchase date will be adjusted to the capital reserve and if the capital reserve is insufficient to offset the
retained earnings will be adjusted; In case of loss of control right the accounting treatment shall be carried out
according to the above accounting policy when the control right over the original subsidiary is lost.
7.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand ready usable deposits and investments
having short holding term (normally will be due within three months from the day of purchase) with strong
liquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of
change.
8.Foreign Currency Transaction
(1) Foreign currency business
Foreign currency transactions of the Company are converted into the amount of bookkeeping base currency
according to the spot rate on the transaction date.On the balance sheet date foreign currency monetary items and foreign currency non-monetary items shall
be treated according to the following provisions: foreign currency monetary items shall be converted at the spot
rate on the balance sheet date. Exchange differences arising from the difference between the spot rate on the
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
1512021 Annual Report
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.* Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimed
at collecting the contractual cash flow and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements that is the cash flow generated on a specific date is only the
payment of principal and interest based on the amount of outstanding principal. For such financial assets the
Company adopts the method of real interest rate and makes subsequent measurement according to the cost of
amortization. The profits or losses resulting from amortization or impairment are included in current profits and
losses.* Financial assets measured at fair value and changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect the contractual cash flow
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures such financial assets at fair value and their changes are included in other
comprehensive gains but impairment losses or gains exchange gains and losses and interest income calculated
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
1522021 Annual Report
measured at fair value with changes included in other comprehensive income. The Company includes the relevant
dividend income of such financial assets in current profits and losses and the changes in fair value in other
comprehensive gains. When the financial asset ceases to be recognized the accumulated gains or losses
previously included in other comprehensive gains shall be transferred into retained income from other
comprehensive income and not be included in current profit and loss.* Financial assets measured at fair value and changes included in current profits and losses
The Company includes the above-mentioned financial assets measured at amortized cost and those measured
at fair value and their's changes in financial assets other than financial assets of comprehensive income and
classifies them as financial assets measured at fair value and their's changes that are included in current profits and
losses. In addition the Company designates some financial assets as financial assets measured at fair value and
includes their changes in current profits and losses in order to eliminate or significantly reduce accounting
mismatches during initial recognition. In regard with such financial assets the Company adopts fair value for
subsequent measurement and includes changes in fair value into current profits and losses.
（2）Classification recognition and measurement of financial liabilities
The Group’s financial liabilities are on initial recognition classified into financial liabilities at fair value
through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss
relevant transaction costs are immediately recognized in profit or loss for the current period and transaction costs
relating to other financial liabilities are included in the initial recognition amounts.
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.* 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: * The
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contractual right to collect the cash flow of the financial asset is terminated; * The financial asset has been
transferred and almost all the risks and rewards in the ownership of the financial asset have been transferred to
the transferee; * The financial asset has been transferred although the enterprise neither transfers nor retains
almost all the risks and rewards in the ownership of the financial asset but it abandoned control of the financial
assets.In case that the enterprise does not transfer or retain almost all risks and rewards on financial assets
ownership nor waive to control these assets relevant financial assets shall be recognized in accordance with the
degree for continued involvement of financial assets transferred and relevant liabilities shall be recognized
correspondingly. west bank The term "continuous involvement in the transferred financial asset" shall refer to the
risk level that the enterprise faces resulting from the change of the value of the financial asset.If the overall transfer of the financial assets satisfies the derecognition criteria the difference between the
book value of the transferred financial assets and the sum of the consideration received from transfer and
cumulative change in fair value previously recognized in other comprehensive income is accounted into the
current profit or loss.In case that the partial transfer of financial assets meets de-recognition conditions the book value of
financial assets transferred shall be allocated as per respective fair value between de-recognized or not
de-recognized parts and the difference between the sum of the consideration received due to transfer with the
accumulated amount of fair value changes that is previously included in other comprehensive income and shall be
allocated to de-recognized parts and the aforesaid book amount allocated shall be included in the current profit or
loss.The Company shall determine whether almost all the risks and rewards of the ownership of the financial
assets sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. If
almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee the
confirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of the
financial asset have been retained the confirmation of the financial asset shall not be terminated; if neither the
transfer nor the retention of almost all the risks and rewards in the ownership of the financial asset has been made.In case of remuneration it shall continue to determine whether the enterprise has retained control over the assets
and conduct accounting treatment in accordance with the principles described in the preceding paragraphs.
(4) Termination confirmation of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged the Company shall
terminate the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an
agreement with the lender to replace the original financial liabilities by assuming new financial liabilities and the
contract terms of the new financial liabilities are substantially different from those of the original financial
liabilities it shall terminate the recognition of the original financial liabilities and at the same time confirm a new
financial liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or
part thereof) it shall terminate the confirmation of the original financial liabilities and at the same time confirm a
new financial liabilities in accordance with the revised terms.If the financial liabilities (or part thereof) are terminated the difference between their book value and the
consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits
and losses of the current period.
（5）Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets
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
1542021 Annual Report
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.
10. Impairment of financial instruments
The Company requires to confirm that the financial assets lost by impairment are financial assets measured
by amortized cost investment in debt instruments and lease receivables which are measured at fair value and
whose changes are included in other comprehensive gains mainly including notes receivable accounts receivable
other receivables creditor's rights investment other creditor's rights investment and long-term receivables and etc.In addition provision for impairment and confirmation of credit impairment losses are also made for contract
assets and some financial guarantee contracts in accordance with the accounting policies described in this section.
(1) Method of confirming impairment provision
Based on anticipated credit loss the Company calculates impairment preparation and confirms credit
impairment loss according to the applicable anticipated credit loss measurement method (general method or
simplified method).Credit loss refers to the difference between the cash flow of all contracts discounted according to the original
real interest rate and the expected cash flow of all contracts receivable according to the contract that is the
present value of all cash shortages. Among them the Company discounts the financial assets purchased or
originated with credit impairment at the actual interest rate adjusted by credit.The general method of measuring anticipated credit loss is whether the credit risk of the Company's
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
1552021 Annual Report
since the initial recognition the Company shall measure the loss preparation according to the amount equivalent
to the expected credit loss in the whole duration. If the credit risk has not increased significantly since the initial
recognition the Company shall measure the loss preparation according to the amount equivalent to the expected
credit loss in the next 12 months. The Company shall consider all reasonable and evidenced information
including forward-looking information when evaluating expected credit losses.Assuming that their credit risk has not increased significantly since the initial recognition the Company may
choose to measure the loss reserve according to the expected credit loss in the next 12 months for financial
instruments with low credit risk on the balance sheet date.
(2) Criteria for judging whether credit risk has increased significantly since the initial recognition
If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly
higher than the probability of default during the estimated duration of the initial recognition the credit risk of the
financial asset is significantly increased. Except for special circumstances the Company uses the change of
default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to
determine whether the credit risk has increased significantly since the initial recognition.
(3) A portfolio-based approach to assessing expected credit risk
The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk such as
the related party's receivables the receivables in dispute with the other party or involving litigation and arbitration
and receivables that has been proved that the debtor may not be able to fulfill the obligation of repayment etc.In addition to the financial assets that assess credit risk individually the Company shall divide financial
assets into different groups based on common risk characteristics and assess credit risk on the basis of portfolio.
(4) Accounting treatment of impairment of financial assets
At the end of the duration the Company shall calculate the anticipated credit losses of various financial
assets. If the anticipated credit losses are greater than the book value of its current impairment provision the
difference is deemed as impairment loss. If the balance is less than the book value of the current impairment
provision the difference is deemed as impairment profit.
(5) Method of determining credit losses of various financial assets
* Receivable Account and Contract assets
In regard to receivables without significant financing components the Company shall measure loss
preparation according to the amount of anticipated credit loss equivalent to the entire duration.In regard to accounts receivable with significant financing components the Company shall choose to
measure loss preparation according to the amount equivalent to the expected credit loss within the duration all the
time.In addition to the accounts receivable that assesses the credit risk individually receivables are divided into
different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1：Aging protfolio This portfolio is characterized by the aging of receivables as a credit risk.Portfolio 2 ： Quality Guarantee This portfolio is the contract quality guarantee fund and other funds
portfolio
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
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3-4 years 50
4-5 years 90
Over 5 years 100
For the guarantee fund portfolio of portfolio 2 no provision for bad debts shall be made unless there is
objective evidence that the money cannot be recovered according to the original terms of accounts receivable and
contract assets.* Other receivable
The Company has measured the impairment loss based on the amount of expected credit losses in the next
12 months or the entire duration based on whether the credit risk of other receivables has increased significantly
since the initial recognition. In addition to the other accounts receivable which assesses the credit risk individually
they are divided into different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1 This portfolio is a collection of various deposits advances pledges and other
receivables in daily activities.Protfolio 2 This portfolio is a reserve fund borrowed by employees in their daily business
activities.Protfolio 3 Other receivables other than the above portfolio.Combination of deposit quality assurance fund and deposit and reserve fund combination except for
objective evidence that the Group will not be able to recover the amount according to the original terms of
receivables will not normally be accrued for bad debt reserves. The measurement method of bad debt reserves for
other combinations is aging analysis and the accrual proportion is the same as accounts receivable.* Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost etc. The
Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months
or the entire duration based on whether the credit risk has increased significantly since the initial recognition. The
Company adopts the method of evaluating credit risk with individual assets for creditor's rights investment.
11.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.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.Physical inventories are managed by the perpetual inventory taking system.
1572021 Annual Report
12.Contract assets and Contract liabilities
In the contract between the Company and customers the Company has the right to charge the contract price
for the goods and related services that have been transferred to customers and meanwhile undertake the
performance obligation of transferring the goods or services to customers. When the customer actually pays the
contract consideration or the enterprise has transferred the goods or services to the customer before the
consideration becomes due and payable the right to receive the consideration due to the transferred goods or
services shall be listed as contract assets and recognized as accounts receivable or long-term receivables when the
unconditional right of collection is obtained. `
In the contract between the Company and customers the Company has the right to receive the contract
consideration before transferring the goods or services to customers and in the meantime list the obligation to
transfer goods or services to customers due to the consideration received or receivable from customers as
contractual liabilities. When the Company fulfills its obligation to transfer goods or provide services to customers
the contractual liabilities are recognized as income.The Company shall list the contract assets and liabilities under the same contract in net amount.
13. Long-term equity investments
(1) Initial measurement
The Company makes initial measurement of long-term equity investment in the following two situations:
* The initial investment cost of long-term equity investment formed by business combination shall be
determined in accordance with the following provisions:
A. In a business combination under the same control if the combining party pays cash transfers non-cash
assets or assumes debts as the combination consideration the share of the book value of the owner's equity of the
merged party in the consolidated financial statements of the final controlling party shall be taken as the initial
investment cost of long-term equity investment on the combination date. The difference between the initial
investment cost of long-term equity investment and the cash paid the transferred non-cash assets and the book
value of the debts undertaken is adopted to adjust the capital reserve; If the capital reserve is insufficient to offset
the retained earnings shall be adjusted. All directly related expenses incurred for business combination including
audit fees evaluation fees legal service fees etc. are included in the current profits and losses when they occur.B. In the business combination not under the same control the Company determines the combination cost by
distinguishing the following situations:
a) For business combination realized by one exchange transaction the cost of combination is the fair value of
assets paid liabilities incurred or assumed in order to gain control over the purchased party on the purchase date;
b) For business combination realized step by step through multiple exchange transactions the sum of the
book value of the equity investment of the purchased party held before the purchase date and the new investment
cost on the purchase date shall be taken as the initial investment cost of the investment;
c) Intermediary expenses such as auditing legal services evaluation and consultation and other related
management expenses incurred for business combination are included in the current profits and losses when they
occur;
d) If future events that may affect the combination cost are agreed in the combination contract or agreement
if it is estimated that the future events are likely to occur on the purchase date and the amount of impact on the
combination cost can be reliably measured they will be included in the combination cost.* Except for the long-term equity investment formed by business combination the initial investment cost of
long-term equity investment obtained by other means shall be determined in accordance with the following
provisions:
1582021 Annual Report
A. For the long-term equity investment obtained by cash payment the actual purchase price shall be taken as
the initial investment cost. Initial investment cost includes expenses taxes and other necessary expenditures
directly related to obtaining long-term equity investment.B. For long-term equity investment obtained through exchange of non-monetary assets the initial investment
cost shall be determined according to Accounting Standards for Business Enterprises No.7-Exchange of
Non-monetary Assets.C. For long-term equity investment obtained through debt restructuring the initial investment cost shall be
determined according to Accounting Standards for Business Enterprises No.12-Debt Restructuring.* No matter how the long-term equity investment is obtained when the investment is obtained the cash
dividends or profits included in the paid consideration that have been declared but not yet issued by the investee
are separately accounted as receivable items which does not constitute the initial investment cost of obtaining the
long-term equity investment.
(2) Subsequent measurement
Long-term equity investment that can be controlled by the investee shall be accounted by the cost method in
individual financial statements. Long-term equity investments that have joint control or significant influence on
the investee shall be accounted by equity method.* Long-term equity investment accounted by cost method is priced according to the initial investment cost。
Adjust the cost of long-term equity investment by adding or recovering investment. Cash dividends or profits
declared and distributed by the investee shall be recognized as current investment income.If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee the initial investment cost of long-term equity investment
shall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value share
of the identifiable net assets of the investee at the time of investment the difference shall be included in the
current profits and losses and the cost of long-term equity investment shall be adjusted at the same time.After obtaining the long-term equity investment the investment income and other comprehensive income
shall be recognized respectively according to the share of the net profit and loss and other comprehensive income
realized by the invested unit and the book value of the long-term equity investment shall be adjusted at the same
time; According to the profit or cash dividend declared and distributed by the investee the book value of
long-term equity investment shall be reduced accordingly; The book value of the long-term equity investment is
adjusted and included in the owner's equity for other changes in the owner's equity of the investee except net
profit and loss other comprehensive income and profit distribution. When recognizing the share of the net profit
and loss of the investee the net profit of the investee is recognized after adjustment based on the fair value of the
identifiable net assets of the investee at the time of obtaining the investment. If the accounting policies and
accounting periods adopted by the investee are inconsistent with those of the Company the financial statements of
the investee shall be adjusted according to the accounting policies and accounting periods of the Company and
the investment income and other comprehensive income shall be recognized accordingly. The net loss incurred by
the investee is recognized to be written down to zero by the book value of long-term equity investment and other
long-term interests that substantially constitute the net investment of the investee unless the Company is obligated
to bear additional losses. If the investee achieves net profit in the future the Company will resume the recognition
of the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharing
amount.When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee the
unrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculated
according to the proportion that should be enjoyed and the part attributable to the Company shall be offset and
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the investment income shall be recognized on this basis. Unrealized internal transaction losses between the
Company and the investee are asset impairment losses which shall be fully recognized.Part of the company's equity investment in affiliated enterprises is indirectly held through venture capital
institutions mutual funds trust companies or similar entities including investment-linked insurance funds.Regardless of whether the above entities have a significant impact on this part of investment the Company
chooses to measure this part of indirect investment at fair value and its change is included in profit or loss in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments and the rest is accounted for by equity method.* When the Company disposes of long-term equity investment the difference between its book value and
the actual purchase price shall be included in the current profits and losses. For long-term equity investment
accounted by equity method when disposing of the investment it adopts the same basis as the investee's direct
disposal of related assets or liabilities and accounts for the part originally included in other comprehensive
income according to the corresponding proportion.
(3) Basis to determine joint control over and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with the relevant agreement and
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.
14.Investment Property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property is held to earn rentals or for capital appreciation or for both. Investment property
includes leased or ready to transfer after capital appreciation land use rights and leased buildings.
（1）The measurement mode of investment property
* Depreciation or amortization method
The estimated service life net salvage value rate and annual depreciation (amortization) rate of investment
real estate are listed as follows:
Type Estimated service lifeEstimated net salvage valueAnnual depreciation
(years) rate (amortization) rate
Land use right Remaining useful life
Houses and buildings 20-30 years 3%-10% 3%-4.85%
* Impairment test method and accounting treatment method
See "30. Asset Impairment" for details of impairment test methods and impairment provision accrual
methods of investment real estate.
(2) Conversion of investment real estate
The Company has conclusive evidence that the use of real estate has changed. When converting investment
real estate into self-use real estate or inventory the fair value on the day of conversion is taken as the book value
of self-use real estate and the difference between fair value and original book value is included in current profits
1602021 Annual Report
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.
15.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.
（2）Depreciation method
* The Company's fixed assets include roads and bridges houses and buildings machinery and equipment
electronic equipment transportation tools and other equipment.* 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.Annual
Depreciation Expected useful
Type Residual rate（%） depreciation
method life(Year)
rate(%)
Guangfo Expressway Working flow basis 28 years 0%
Fokai Expressway-Xiebian to
Working flow basis 40 years 0%
Sanbao Section
Fokai Expressway-Sanbao to Shuikou
Working flow basis 47.5 years 0%
Section
Jingzhu Expressway Guangzhu
Working flow basis 30 years 0%
Section
Guanghui Expressway Co. Ltd. Working flow basis 23 years 0%
House Building The straight-line
20-30 years 3%-5% 3.17%-4.85%
method
The straight-line
Machine Equipment 3-10 years 3%-5% 9.50%-32.33%
method
The straight-line
Transportation Equipment 5-8 years 3%-5% 11.88%-19.40%
method
1612021 Annual Report
The straight-line
Other 5 years 3%-5% 19.00%-19.40%
method
16.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.
17.Borrowing cost
(1) Recognition principle and capitalization period of borrowing cost capitalization
Borrowing costs incurred by the Company can be directly attributed to the purchase construction or
production of assets that meet the capitalization conditions and shall be capitalized when the following conditions
are met at the same time and included in the relevant asset costs:
* Production and expenditure have occurred;
* Borrowing costs have already occurred;
* The purchase construction or production activities required to make the assets reach the intended usable
or saleable state have started.Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are
abnormally interrupted in the process of purchase construction or production and the interruption time
continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as
expenses and included in the current profits and losses until the purchase and construction of assets or the
resumption of production activities. If the interruption is a necessary procedure for the purchased built or
produced assets that meet the capitalization conditions to reach the intended usable or saleable state the
capitalization of borrowing costs will continue.Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased built
or produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as
expenses in the current period.
(2) Calculation method of capitalization amount of borrowing costs
Where a special loan is borrowed for the purpose of purchasing building or producing assets that meet the
capitalization conditions it shall be determined by deducting the interest income obtained by depositing unused
loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the
investment income obtained by temporary investment.If the general loan is occupied for the purpose of purchasing building or producing assets that meet the
capitalization conditions the interest amount of the general loan that should be capitalized shall be calculated and
determined according to the weighted average of the accumulated asset expenditure exceeding the special loan
portion multiplied by the capitalization rate of the occupied general loan. Capitalization rate is calculated and
determined according to the weighted average interest rate of general borrowings.
1622021 Annual Report
18.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
Toll road franchises Operating period for residual charges
19. 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
1632021 Annual Report
be transferred to the current profits and losses.
20. 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.
21.Estimated liabilities
(1) Recognition criteria of estimated liabilities
If the obligations related to contingencies stipulated by the Company meet the following conditions at the
same time they are recognized as estimated liabilities:
* The obligations are the current obligations undertaken by the enterprise;
* Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;
* The amount of the obligations can be measured reliably.
(2) Measurement method of estimated liabilities
Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill
relevant current obligations. There is a continuous range of required expenditure and the possibility of occurrence
of various results in this range is the same and the best estimate is determined according to the intermediate value
in this range. In other cases the best estimates are treated as follows:
1642021 Annual Report
* Contingencies involving a single item shall be determined according to the most probable amount.* Contingencies involving multiple items shall be calculated and determined according to various possible
results and relevant probabilities.When determining the best estimate the risk uncertainty and time value of money related to contingencies
shall be considered comprehensively. If the time value of money has great influence the best estimate is
determined by discounting the related future cash outflow.If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be
compensated by a third party the compensation amount can be recognized as an asset only when it is basically
confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the
estimated liabilities.The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is
conclusive evidence that the book value cannot truly reflect the current best estimate the book value shall be
adjusted according to the current best estimate.
22. Revenues
Accounting policies adopted for income recognition and measurement
(1) Revenue recognition principle
Since the starting date of the contract the company shall evaluate the contract identifies each individual
performance obligation contained in and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point of time.The performance obligation is defined as fulfillment within a certain period of time if one of the following
conditions is met otherwise it is defined as fulfilled at a certain point in time: * The customer obtains and
consumes the economic benefits brought by the company's performance while the company performs the contract;
* The customer can control the goods under manufacturing or services during the company's performance; *
The goods or services produced during the company's performance have irreplaceable uses and the company has
the right to accumulate for the completed performances during the entire contract period.For obligations performed within a certain period of time the company recognizes revenue in accordance
with the performance progress in that period. If the performance progress cannot be reasonably determined and
the cost incurred is expected to be compensated the revenue shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined. For obligations performed at a certain
point in time revenue shall be recognized at the point when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of the product the company shall consider the
following points: * The company has the current right to receive payment for the product that is the customer
has the current payment obligation for the product; * The company has transferred the legal ownership of the
product to the customer that is the customer has the legal ownership of the product; * The company has
transferred the physical product to the customer that is the customer has physically taken possession of the
product; * The company has transferred the main risks and rewards on the ownership of the product to the
customer that is the customer has obtained the main risks and rewards on the ownership of the product; * The
customer has accepted the product;* Other signs that the customer has obtained control of the product.
(2) Principle of revenue measurement
* The company shall measure revenue based on the transaction price allocated to each individual
performance obligation. The transaction price is the amount of consideration that the company expects to be
entitled to receive due to the transfer of goods or services to customers while does not include payments received
on behalf of third parties and payments expected to be returned to customers.
1652021 Annual Report
* If there is variable consideration in the contract the company shall determine its best estimate according
to the expected value or the most likely amount but the transaction price including the variable consideration shall
not exceed the accumulated amount that if relevant uncertainty is eliminated will most likely have no significant
reversal.* If there is any significant financing component in the contract the company shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the goods or services.The difference between transaction price and contract consideration shall be amortized through effective interest
method during the contract period. On the starting date of contract if the company expects that the customer will
obtain control of the goods or services and pays the price within one year the significant financing component in
contract shall not be considered.* If the contract contains two or more performance obligations the company shall on date of the contract
allocate the transaction price to each individual obligation item in accordance with the relative proportion of the
separate selling price of promised goods.The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
(3) Specific methods of revenue recognition
(1) Toll service fee income
The toll income of roads and bridges is determined according to the amount collected and receivable by
vehicles when passing through.
(2) Income from providing labor services
For services started and completed in the same fiscal year income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years the Company shall
on the balance sheet date recognize the related labor income by the percentage of completion method provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied the results of the transaction can be reliably estimated: * the total income and total cost of labor
services can be reliably measured; * the economic benefits related to the transaction can flow into the enterprise;
* the degree of completion of labor services can be reliably determined.For services started and completed in the same fiscal year income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years the Company shall
on the balance sheet date recognize the related labor income by the percentage of completion method provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied the results of the transaction can be reliably estimated: * the total income and total cost of labor
services can be reliably measured;* the economic benefits related to the transaction can flow into the enterprise;
If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably the
following situations shall be dealt with respectively:
* If the labor cost already incurred is expected to be compensated the income from the service shall be
recognized according to the amount of the labor cost already incurred and the labor cost shall be carried over at
the same amount.* If the incurred labor cost is not expected to be compensated the incurred labor cost shall be included in
the profits and losses of the current period and the income from the provision of labor service shall not be
recognized.When the contracts or agreements signed between the Company and other enterprises include selling goods
and providing services if the part for selling goods and the part for providing services can be distinguished and
measured separately the part for selling goods will be treated as goods sales and the part for providing services
1662021 Annual Report
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
23. 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.
24.Deferred income tax assets and deferred income tax liabilities
The Company adopts the balance sheet liability method for income tax accounting treatment.
(1) Deferred tax assets
* If there is a deductible temporary difference between the book value of an asset or liability and its tax
basis the deferred income tax assets generated by the deductible temporary difference shall be calculated and
confirmed according to the applicable tax rate during the expected period of recovering the asset or paying off the
liability.* On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be
1672021 Annual Report
obtained in the future period to offset the deductible temporary difference the unrecognized deferred income tax
assets in the previous period shall be recognized.* On the balance sheet date the book value of deferred income tax assets shall be reviewed. If it is unlikely
that enough taxable income will be obtained in the future period to offset the benefits of deferred income tax
assets the book value of deferred income tax assets will be written down. When sufficient taxable income is likely
to be obtained the written-down amount will be reversed.
(2) Deferred income tax liabilities
If there is a taxable temporary difference between the book value of assets and liabilities and their tax basis
the deferred income tax liabilities arising from the taxable temporary difference shall be recognized according to
the applicable tax rate during the expected period of recovering the assets or paying off the liabilities.
25.Lease
(1) Identification of lease
On the commencement date of the contract the Company as the lessee or lessor evaluates whether the
customers in the contract have the right to obtain almost all economic benefits arising from the use of the
identified assets during the use period and has the right to lead the use of the identified assets during the use
period. If one party to the contract transfers the right to control the use of one or multiple identified assets within a
certain period of time in exchange for consideration the Company will consider the contract as lease or
lease-included.
（2）The Company as the lessee
On the start date of the lease term the Company recognizes the right-to-use assets and lease liabilities for all
leases except for short-term leases and low-value asset leases that are simplified.The accounting policy of the right-to-use assets is shown in Note III. 26.Lease liabilities are initially measured according to the unpaid lease payment amount on the start date of the
lease term and the present value calculated according to the implied interest rate of the lease or the incremental
borrowing interest rate. The lease payment amount includes: fixed payment amount and substantial fixed payment
amount. If there is lease incentive the related amount of lease incentive shall be deducted; variable lease
payments depending on index or ratio; the exercise price of the option provided that the lessee reasonably
determines that the option will be exercised; payment for exercising the option to terminate the lease provided
that the lease period reflects that the lessee will exercise the option to terminate the lease; and the amount
expected to be paid according to the residual guarantee value provided by the lessee. The interest expense of the
lease liability in each period of the lease term shall be calculated subsequently according to the fixed periodic
interest rate and included in the current profit and loss. Variable lease payments that are not included in the
measurement of lease liabilities are included in the current profits and losses when actually incurred.Short-term lease
Short-term lease refers to the lease with a lease term of no more than 12 months on the start date of the lease
term except for the lease with purchase option.The Company includes the lease payment of short-term lease into the related asset cost or current profit and
loss according to the straight-line method in each period of the lease term.Low-value asset lease
Low-value asset lease refers to the lease in which the value of a single leased asset is less than RMB 100000
when it is brand new.The Company includes the lease payment of low-value assets into the related asset cost or current profit and
1682021 Annual Report
loss according to the straight-line method in each period of the lease term.For the lease of low-value assets the Company chooses to adopt the simplified treatment method mentioned
above according to the specific conditions of each lease.
(3) The Company serves as the lessor
The Company when as the lessor recognizes the leases that have substantially transferred all risks and
rewards related to asset ownership as financial leases and other leases except financial leases as operating leases.Accounting methods for operating leases
For the rent in the operating lease the Company recognizes the current profits and losses according to the
straight-line method in each period of the lease term. The initial direct expenses incurred in connection with the
operating lease shall be capitalized allocated on the same basis as the rental income recognition during the lease
term and included in the current profits and losses by stages. The variable lease payments obtained related to
operating leases that are not included in the lease receipts are included in the current profits and losses when they
actually occur.Accounting treatment method of leasing
In financing lease at the beginning of the lease term Japanese companies take the net investment in leasing
as the recorded value of the financing lease receivable and the net investment in leasing is the sum of the
unsecured residual value and the present value of the lease proceeds that have not yet been received on the start
date of the lease term discounted according to the implied interest rate of the lease. As the lessor the Company
calculates and recognizes the interest income of each period in the lease term according to the fixed periodic
interest rate. The variable lease payments obtained by the Company as the lessor that are not included in the
measurement of net lease investment are recorded into the current profits and losses when they actually occur.The derecognition and impairment of financial lease receivables shall be treated according to the provisions
of Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments
and Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets.
26.The right to use assets
(1) Conditions for recognition of the right-to-use assets
The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased assets
during the lease term.On the start date of the lease term the right-to-use assets are initially measured at cost. The cost includes:
The initial measurement amount of lease liabilities; if there is lease incentive for the lease payment issued on or
before the start date of the lease term the amount related to the lease incentive enjoyed shall be deducted; initial
direct expenses incurred by the Company as the lessee; the estimated costs that the Company as the lessee will
incur for dismantling and removing the leased assets restoring the leased assets' site or restoring the leased assets
to the state agreed in the lease terms. The Company as the lessee recognizes and measures the demolition and
restoration costs in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies. It
makes subsequent adjustments to any remeasurement of lease liabilities.
(2) Depreciation method of right-to-use assets
The Company adopts the straight-line method to accrue depreciation. If the Company as the lessee can be
reasonably determined that the ownership of the leased asset is acquired at the expiration of the lease term it shall
accrue depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine
that the ownership of the leased asset can be acquired at the expiration of the lease term it shall accrue
depreciation within the shorter of the lease term and the remaining service life of the leased asset.
1692021 Annual Report
(3) See "27. Impairment of Assets" in "Section V Important Accounting Policies and Accounting Estimates"
for the impairment test method and the provision method for impairment of right-to-use assets.
27. 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.
28. Fair value measurement
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
1702021 Annual Report
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.
29.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □ Not applicable
Contents and causes of changes in accounting policies Approval procedures Remarks
Adopted at the 16th
On December 7 2018 the Ministry of Finance issued the Accounting Standards for
Meeting of the Ninth
Business Enterprises No.21-Lease (Revised in 2018). The Company has implemented
Board of Directors of
the aforementioned New Leasing Standards from January 1 2021 and changed
the Company on
relevant accounting policies according to the New Leasing Standards.March 25 2021
As the participating companies Guangdong Yuepu Microfinance Co. Ltd. and
Guoyuan Securities Co. Ltd. implemented the new accounting standards to adjust
their opening balance the Company adopted the equity method to calculate and adjust
the opening balance of the 2021 financial statements accordingly
According to relevant laws and regulations the Company implemented centralized and
unified management of the funds of member units through the internal settlement
center and listed the funds in the "Other current liabilities". On December 30 2021
the Ministry of Finance issued Interpretation No.15 of Accounting Standards for
Business Enterprises which clearly listed the above-mentioned collected funds in the
item of "Other payables" and the Company adjusted and presented them according to
1712021 Annual Report
the requirements of Interpretation No.15.On December 7 2018 the Ministry of Finance issued the Accounting Standards for Business Enterprises
No.21-Lease (Revised in 2018). The Company has implemented the aforementioned New Leasing Standards from
January 1 2021 and changed relevant accounting policies according to the New Leasing Standards.According to the provisions of the new lease standard the Company reassess whether the contract that exists
before the first implementation date is a lease or includes a lease. For the lease contract in which it’s the lessee
the Company chooses to adjust only the cumulative impact of the lease contract that has not been completed on
January 1 2021. The amount of cumulative impact of the first implementation adjusts the amount of retained
earnings and other related items in the financial statements at the beginning of the first implementation period (ie
January 1 2021) and no adjustment will be made to the comparable period information. For the operating lease
on the first implementation date the lessee measures the lease liability based on the present value of the remaining
lease payments discounted at the incremental borrowing rate on the first implementation date.The Company chooses an amount equal to the lease liability according to each lease and measures theright-of-use assets according to necessary adjustments based on the prepaid rent. And in accordance with the “No.
8 Accounting Standards for Business Enterprises-Asset Impairment" the impairment test of the right-of-use assets
is carried out and the corresponding accounting treatments are carried out.The impact of the implementation of the above accounting policy changes on the financial statements on
January 1 2021 is as follows:
a． Impact on the consolidated financial statementsReport items December 312020（Before January 12021（After Impacted mumberchange） change）
Advance payment 3607538.01 2831124.98 -776413.03
The right to use asset 23154055.78 23154055.78
Long-term amortized expenses 3462122.00 2454375.00 -1007747.00
Lease liabilities 12245214.89 12245214.89
Non-current liabilities due within one yea 266328017.47 275452698.33 9124680.86
b．Impact on the parent company financial statementsReport items December 312020（Before January 12021（After Impacted numberchange） change）
Advance payment 2181215.03 1404802.00 -776413.03
The right to use asset 21927040.99 21927040.99
Long-term amortized expenses 12133352.33 12133352.33
Lease liabilities 190331701.48 199348977.11 9017275.63
Non-current liabilities due within one yea
（2）Other accounting policy changes
1) As the participating companies Guangdong Yuepu Microfinance Co. Ltd. and Guoyuan Securities Co.
Ltd. implemented the new accounting standards to adjust their opening balance the Company adopted the equity
method to calculate and adjust the opening balance of the 2021 financial statements accordingly
a． Impact on the consolidated financial statementsReport items December 312020（Before January 12021（After Impacted numberchange） change）
Long-term equity investment 2382381165.60 2382927355.64 546190.04
1722021 Annual Report
Undistributed profits 3725679319.35 3726225509.39 546190.04
b．Impact on the parent company financial statementsReport items December 312020（Before January 12021（After Impacted numberchange） change）
Long-term equity investment 5529362536.53 5529908726.57 546190.04
Undistributed profits 3667543163.36 3668089353.40 546190.04
2) According to relevant laws and regulations the Company implemented centralized and unified
management of the funds of member units through the internal settlement center and listed the funds in the "Other
current liabilities". On December 30 2021 the Ministry of Finance issued the Interpretation No.15 of Accounting
Standards for Business Enterprises which clearly listed the above-mentioned collected funds in the item of "Other
payables" and the Company adjusted and presented them according to the requirements of Interpretation No.15.Due to fact that Guangdong Taiheng Expressway Development Co. Ltd. failed to fulfill the obligation of pipeline
lease payment as agreed in the contract even after repeated reminders Guangzhou-Huizhou Company filed a
lawsuit with Huangpu District People's Court in Guangzhou in October 2021 and the case is still under trial .a． Impact on the consolidated financial statements
None
b．Impact on the parent company financial statementsReport items December 312020（Before January 12021（After Impacted numberchange） change）
Other current liabilities 539618124.00 72415.40 -539545708.60
Other payable 1431814861.38 1971360569.98 539545708.60
（2）Significant estimates changes
√ Applicable □ Not applicable
Time point at which
Contents and causes of changes in accounting estimates Approval procedure
the application begins
The Company held the nineteenth (temporary) meeting of the
ninth board of directors on June 28 2021. At the meeting the The 19th meeting of
"Proposal on Changes in Accounting Estimates" was passed and the 9th Board of
January 12021
the company agreed to the depreciation period of the Directors of the
Sanbao-Shuikou section of the expressway has been changed and Company
the depreciation period has been extended to June 14 2044.The Company held the nineteenth (temporary) meeting of the ninth board of directors on June 28 2021. At
the meeting the "Proposal on Changes in Accounting Estimates" was passed and the company agreed to the
depreciation period of the Sanbao-Shuikou section of the expressway has been changed and the depreciation
period has been extended to June 14 2044 For this matter the Company adopted the future application method.The impact on the financial statement items is as follows:
Contents and causes of changes inApproval Time point at whichAffected report items Impact amount
accounting estimates procedure the application begins
Guangdong Provincial Department Fixed assets 137099491.31
of Transportation has approved the Resolution of the Intangible assets 2708527.52
June 12021
extension of the charging period for board of directors Deferred income tax 12993568.40
the Sanbao-Shuikou section of the assets
1732021 Annual Report
Shenyang-Haikou National Deferred income tax -38140.18
Expressway to June 14 2044. Liabilities
Main business cost -139808018.83
Income tax expenses -13031708.58
Net profit 152839727.41
（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 2021
√Applicable □ Not applicable
Whether need to adjust the balance sheet account at the beginning of the year
√ Yes □No
Consolidated balance sheet
In RMB
Amount involved in the
Items December 312020 January 12021
adjustment
Current asset：
Monetary fund 2847398003.89 2847398003.89
Settlement provision
Outgoing call loan
Transactional financial
assets
Derivative financial assets
Notes receivable
Account receivable 168907517.56 168907517.56
Financing of receivables
Prepayments 3607538.01 2831124.98 -776413.03
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other account receivable 60925367.64 60925367.64
Including：Interest
receivable
Dividend receivable 2705472.90 2705472.90
Repurchasing of financial
assets
Inventories 53761.06 53761.06
1742021 Annual Report
Amount involved in the
Items December 312020 January 12021
adjustment
Contract assets 5452813.90 5452813.90
Assets held for sales
Non-current asset due 51745.32 51745.32
within 1 year
Other current asset 27051.69 27051.69
Total of current assets 3086423799.07 3085647386.04
Non-current assets
Loans and payment on
other’s behalf disbursed
Creditor's right investment
Other creditor's right
investment
Long-term receivable
Long term share equity
2382381165.602382927355.64546190.04
investment
Other equity instruments
1737015528.291737015528.29
investment
Other non-current financial
assets
Property investment 3110381.89 3110381.89
Fixed assets 11540075929.69 11540075929.69
Construction in progress 340611095.47 340611095.47
Production physical assets
Oil & gas assets
Use right assets 23154055.78 23154055.78
Intangible assets 302381356.52 302381356.52
Development expenses
Goodwill
Long-germ expenses to be 3462122.00 2454375.00 -1007747.00
amortized
Deferred income tax asset 330755418.39 330755418.39
Other non-current asset 22361861.19 22361861.19
Total of non-current assets 16662154859.04 16684847357.86 22692498.82
Total of assets 19748578658.11 19770494743.90 21916085.79
Current liabilities
1752021 Annual Report
Amount involved in the
Items December 312020 January 12021
adjustment
Short-term loans 200192500.00 200192500.00
Loan from Central Bank
Borrowing funds
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 369773342.71 369773342.71
Advance receipts 11309007.41 11309007.41
Contract liabilities 309734.51 309734.51
Selling of repurchased
financial assets
Deposit taking and
interbank deposit
Entrusted trading of
securities
Entrusted selling of
securities
Employees’ wage payable 16726198.13 16726198.13
Tax payable 217748392.78 217748392.78
Other account payable 1512619359.78 1512619359.78
Including：Interest payable
Dividend payable 22262804.39 22262804.39
Fees and commissions
payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due
266328017.47275452698.339124680.86
within 1 year
Other current liability 648581.64 648581.64
Total of current liability 2595655134.43 2604779815.29 9124680.86
Non-current liabilities：
Reserve fund for insurance
1762021 Annual Report
Amount involved in the
Items December 312020 January 12021
adjustment
contracts
Long-term loan 4977438800.00 4977438800.00
Bond payable 1426488336.65 1426488336.65
Including：preferred stock
Sustainable debt
Lease liability 12245214.89 12245214.89
Long-term payable 40406172.37 40406172.37
Long-term remuneration
payable to staff
Expected liabilities
Deferred income 89170569.64 89170569.64
Deferred income tax
387103060.74387103060.74
liability
Other non-current
liabilities
Total non-current liabilities 6920606939.40 6932852154.29 12245214.89
Total of liability 9516262073.83 9537631969.58 21369895.75
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 645969210.48 645969210.48
Less：Shares in stock
Other comprehensive
302895877.65302895877.65
income
Special reserve
Surplus reserves 1167785965.63 1167785965.63
Common risk provision
Retained profit 3725679319.35 3726225509.39 546190.04
Total of owner’s equity
belong to the parent 7933136499.11 7933682689.15 546190.04
company
Minority shareholders’ 2299180085.17 2299180085.17
1772021 Annual Report
Amount involved in the
Items December 312020 January 12021
adjustment
equity
Total of owners’ equity 10232316584.28 10232862774.32 546190.04
Total of liabilities and
19748578658.1119770494743.9021916085.79
owners’ equity
Adjustment statement
Parent Company Balance Sheet
In RMB
Amount involved in the
Items December 312020 January 12021
adjustment
Current asset：
Monetary fund 1781764519.09 1781764519.09
Transactional financial
assets
Derivative financial assets
Notes receivable
Account receivable 27004827.41 27004827.41
Financing of receivables
Prepayments 2181215.03 1404802.00 -776413.03
Other account receivable 54148114.53 54148114.53
Including：Interest
receivable
Dividend receivable 2705472.90 2705472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due 256279340.60 256279340.60
within 1 year
Other current asset 27051.69 27051.69
Total of current assets 2121405068.35 2120628655.32 -776413.03
Non-current assets：
Creditor's right investment 287903684.98 287903684.98
Other Creditor's right
investment
1782021 Annual Report
Amount involved in the
Items December 312020 January 12021
adjustment
Long-term receivable
Long term share equity
5529362536.535529908726.57546190.04
investment
Other equity instruments
1737015528.291737015528.29
investment
Other non-current financial
assets
Property investment 2858243.64 2858243.64
Fixed assets 6245462940.39 6245462940.39
Construction in progress 43086545.58 43086545.58
Production physical assets
Oil & gas assets
Use right assets 21927040.99 21927040.99
Intangible assets 150582241.22 150582241.22
Development expenses
Goodwill
Long-germ expenses to be
amortized
Deferred income tax asset 322365911.10 322365911.10
Other non-current asset 7089990.48 7089990.48
Total of non-current assets 14325727622.21 14348200853.24 22473231.03
Total of assets 16447132690.56 16468829508.56 21696818.00
Current liabilities
Short-term loans 200192500.00 200192500.00
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 105919984.52 105919984.52
Advance receipts
Contract Liabilities
Employees’ wage payable 6472802.81 6472802.81
Tax payable 9165801.86 9165801.86
1792021 Annual Report
Amount involved in the
Items December 312020 January 12021
adjustment
Other account payable 1431814861.38 1971360569.98 539545708.60
Including：Interest payable
Dividend payable 22262804.39 22262804.39
Liabilities held for sales
Non-current liability due
190331701.48199348977.119017275.63
within 1 year
Other current liability 539618124.00 72415.40 -539545708.60
Total of current liability 2483515776.05 2492533051.68 9017275.63
Non-current liabilities：
Long-term loan 4389653800.00 4389653800.00
Bond payable 1426488336.65 1426488336.65
Including：preferred stock
Sustainable debt
Lease liability 12133352.33 12133352.33
Long-term payable 40406172.37 40406172.37
Long-term remuneration
payable to staff
Expected liabilities
Deferred income 13403327.12 13403327.12
Deferred income tax
105636866.50105636866.50
liability
Other non-current
liabilities
Total non-current liabilities 5975588502.64 5987721854.97 12133352.33
Total of liability 8459104278.69 8480254906.65 21150627.96
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 938969546.79 938969546.79
Less：Shares in stock
Other comprehensive
302895877.65302895877.65
income
1802021 Annual Report
Amount involved in the
Items December 312020 January 12021
adjustment
Special reserve
Surplus reserves 987813698.07 987813698.07
Retained profit 3667543163.36 3668089353.40 546190.04
Total of owners’ equity 7988028411.87 7988574601.91 546190.04
Total of liabilities and
16447132690.5616468829508.5621696818.00
owners’ equity
Note
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases from year 2021
□Applicable √ Not applicable
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 5%7%
Enterprise income tax Taxable income 25%
Education Fee Surcharge The actual payment of turnover tax 3%
Local education surcharge The actual payment of turnover tax 2%
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
1.Monetary Capital
In RMB
Items Amount in year-end Balance Year-beginning
Cash 38214.02 54482.68
Bank deposit 2955850944.81 2846821352.23
1812021 Annual Report
Including：Money deposited with a
1521003542.691031105792.71
finance Company
Other 515231.72 522168.98
Total 2956404390.55 2847398003.89
Other note
As of December 312021The 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.
1822021 Annual Report
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category Amount Proporti Amount Proport Book value Amount Proportio Amount Propor Book value
on(%) ion(%) n(%) tion(%
)
Accrual of bad debt provision by
12268880.607.44%3143664.0025.62%9125216.60
single
Including：
Accrual of bad debt provision by
152527300.1792.56%2599116.901.70%149928183.27172621378.99100.00%3713861.432.15%168907517.56
portfolio
Including：
Total 164796180.77 5742780.90 159053399.87 172621378.99 3713861.43 168907517.56
1832021 Annual Report
* Accrual of bad debt provision by single：
In RMB
Balance in year-end
Name Bad debt Withdrawal
Book balance Reason
provision proportion
Guangdong Guangzhou-Huizhou Expressway
Co. Ltd. a subsidiary company signed a
pipeline lease agreement with Guangdong
Taiheng Expressway Development Co. Ltd. to
provide communication pipelines for
Guangdong Taiheng Guangdong Taiheng Expressway Development
Expressway 5221056.00 3143664.00 60.21% Co. Ltd. Because Guangdong Taiheng
Development Co. Ltd. Expressway Development Co. Ltd. failed to
fulfill its payment obligations as agreed in the
contract even after repeated reminders
Guangzhou-Huizhou Company filed a lawsuit
with Huangpu District People's Court in
Guangzhou in October 2021
Shandong Boan
Intelligent Technology 7047824.60 Recovery occurred on 4 January 2022
Co. Ltd.Total 12268880.60 3143664.00 -- --
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 139418873.03
1-2 years 12960752.00
2-3 years 4183077.45
Over 3 years 8233478.29
3-4 years 7677959.60
4-5 years 93192.00
Over 5 years 462326.69
Total 164796180.77
The withdrawal amount of the bad debt provision：
In RMB
Name Balance in year-end
1842021 Annual Report
Receivable accounts Bad debt provision Withdrawal proportion
Quality guarantee 806228.14
Total 806228.14 --
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
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
The provision for bad debts in the current period is RMB 4519947.60; and the amount of bad debt reserve
recovered or reversed in the current period is RMB 2491028.13.Of which the significant amount of the reversed or collected part during the reporting period :
In RMB
Name Reversed or collected amount Mode
Shandong Boan Intelligent Technology
2222989.88 Recall the accounts receivable in full
Co. Ltd.Total 2222989.88 --
（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 Aging Proportion(%) Bad debt provision
Guangdong Union Electronic Services Co.
78368502.10 Within 1 year 47.55%
Ltd.Gansu Unisplendour Intelligent
Transportation and Control Technology 18914067.17 Within 1 year 11.48%
Co. Ltd
Guangdong Lulu Traffic Development Co.
12958333.31 Within 1 year 7.86%
Ltd.
1046000.00 Within 1 year
Guangzhou Lingte Electronic Co.Ltd. 6.04%
8901000.00 1-2 years 890100.00
Guangdong Jingzhu Expressway
7783650.00 Within 1 year 4.72%
Guangzhu North section Co. Ltd.
1852021 Annual Report
Total 127971552.58 77.65%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
3. Prepayments
（1）Aging analysis
In RMB
Balance in year-end Balance Year-beginning
Aging
Amount Proportion（%） Amount Proportion（%）
Within 1 year 5087647.09 97.32% 2741988.15 96.85%
1-2 years 140000.00 2.68% 89136.83 3.15%
Total 5227647.09 -- 2831124.98 --
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 Amount Aging Reasons for Proportion %
Company non-settlement
China Ping An Property Insurance Co. Non- Related party 3803912.18Within 1 Unliquidated 72.77
Ltd. Guangdong Branch year
China Pacific Property Insurance Co. Non- Related party 838016.00Within 1 Unliquidated 16.03
Ltd. Guangdong Branch year
Zhaoqing Yuezhao highway Co. Ltd. Related party 216750.00Within 1 Unliquidated 4.15
year
Guangdong Excellence Land Real Non- Related party 140000.001-2 years Unliquidated 2.68
Estate Appraisal and Consulting Co.Ltd
Guangzhou Tianhaixiang Aviation Non- Related party 139860.00Within 1 Unliquidated 2.68
Technology Co. Ltd year
Total 5138538.18
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
1862021 Annual Report
Dividend receivable 1205472.90 2705472.90
Other receivable 12555651.33 58219894.74
Total 13761124.23 60925367.64
（1）Interest receivable：None
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment
1205472.901205472.90
No.1 Limited partnership enterprise
Ganzhou Gankang Expressway Co. Ltd. 1500000.00
Total 1205472.90 2705472.90
2）Significant dividend receivable aged over 1 year
In RMB
Whether with
Balance in Reasons for
Items Aging impairment and the
year-end non-recovery
judgment basis
The partnership
agreement expires and
Guangdong Radio and Television Networks No it can be
3-4 can be recovered after
investment No.1 Limited partnership 1205472.90 recovered in the
years the extension
enterprise future
procedures are
completed
Total 1205472.90 -- -- --
3）The bad debt provision
□ Applicable √ Not applicable
1872021 Annual Report
（3） Other accounts receivable
1) Other accounts receivable classified
In RMB
Balance in year-end Balance Year-beginning
Book balance Bad debt provision Book balance Bad debt provision
Category Expecte ExpectedPropor
d credit Book value Proport credit Book value
Amount tion Amount Amount Amount
loss ion (%) loss
(%)
rate(%) rate(%)
Other receivables for
individual bad debt 51535736.09 80.37 51535736.09 100 0 51535736.09 46.9 51535736.09 100 0
provision
Other receivables for bad
debt provision according to
12588109.3119.6332457.980.2612555651.3358345934.7253.1126039.980.2258219894.74
the combination of credit
risk characteristics
Total 64123845.40 / 51568194.07 / 12555651.33 109881670.81 / 51661776.07 / 58219894.74
1882021 Annual Report
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 6589166.07
1-2 years 3965967.71
2-3 years 29980.70
Over 3 years 53538730.92
3-4 years 731394.97
4-5 years 405650.00
Over 5 years 52401685.95
Total 64123845.40
Accrual of bad debt provision by single：
In RMB
Closing book balance
Bad Debt Reserves ExpectedBad debt
Book balance credit loss Reason
provision
rate(%)
Bad debts have been fully
Kunlun Securities Co. Ltd（Note 1） 47528056.18 47528056.18 100
withdrawn in bankruptcy
Beijing Gelin Enze Organic Fertilizer Co. The company is poorly
4007679.914007679.91100
Ltd（Note 2） managed
Total 51535736.09 51535736.09 100
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
1892021 Annual Report
yuan rushed back to the provision for bad debts and write off uncollected interest entrusted loans according to tTh
e settlement agreement of 212400.00 yuan.Disclosure by aging
In RMB
Balance in year-end Balance Year-beginning
Book balance Book balance
Aging Bad debt Bad debt
Proportion Proportion
Amount provision Amount provision
（%）（%）
Within 1
year
2959338.2298.9246729242.6397.97
（Including
1 year）
1-2 years 935820.00 1.96 93582.00
2-3 years
3-4 years
4-5 years
Over 5
32457.981.0832457.9832457.980.0732457.98
years
Total 2991796.20 / 32457.98 47697520.61 / 126039.98
In the portfolio other receivables with bad debt provision by other methods:
In RMB
Balance in year-end Balance Year-beginning
Name Book Bad debt Expected credit Book Bad debt Expected credit
balance provision loss rate(%) balance provision loss rate(%)
Deposit money and
quality guarantee 8815245.54 9694869.85
fund combination
Other 781067.57 953544.26
Total 9596313.11 10648414.11
2) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Balance of settlement funds for
47528056.1847528056.18
securities transactions
Capital reduction due from Gangkang 45000000.00
1902021 Annual Report
Petty cash 4538885.93 5654205.42
Gelin Enze Account 4007679.91 4007679.91
Cash deposit 3469880.18 4001660.43
Tran Other safer of long-term assets
935820.00
receivable
Other 4579343.20 2754248.87
Less：Bad-debt provision 51568194.07 51661776.07
Total 12555651.33 58219894.74
3）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Bad Debt Reserves Expected credit Expected credit loss over Expected credit losses for Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
126039.9851535736.0951661776.07
12021
Balance as at January
————————
12021 in current
Turn back in this
-93582.00-93582.00
period
Balance as at
32457.9851535736.0951568194.07
December 312021
Changes in significant book balances for loss preparation current period
□ Applicable √ Not applicable
4） Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
The provision for bad debts in the current period is RMB 0.00; and the amount of bad debt reserve recovered
or reversed in the current period is RMB 93582.00.
5)The actual write-off other accounts receivable: None
6) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of the
Closing
total year end
Name Nature Closing balance Aging balance of
balance of the
bad debt
accounts
1912021 Annual Report
receivable(%) provision
Securities trading se Over 5
Kunlun Securities Co.Ltd 47528056.18 74.12% 47528056.18
ttlement funds years
Ganzhou Gankang Expressway Over 5
Current account 4007679.91 6.25% 4007679.91
Co. Ltd. years
Within 1
Deposit 22980.00 0.04%
Guangdong Litong Real Estates year
Investment Co. Ltd. Vehicle parking
1630467.36 1-2 years 2.54%
deposit
China Railway No.18 Bureau Within 1
Surrogate payment 963300.00 1.50%
Group Co. Ltd. year
Guangdong Expressway Media Within 1
Advertising 649386.62 1.01%
Co. Ltd. Year
Total -- 54801870.07 -- 85.46% 51535736.09
7) Accounts receivable involved with government subsidies
None
8) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
9) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
5. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Items Provision for Provision for
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 257831.85 257831.85 49380.53 49380.53
Stock goods 382247.81 382247.81 4380.53 4380.53
Total 640079.66 640079.66 53761.06 53761.06
(2) Inventory depreciation reserve
None
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
1922021 Annual Report
（4）Description of amortization amount of contract performance cost in the current period
None
6.Contract assets
In RMB
Year-end balance Year-beginning balance
Items
Book Bad debt Book Bad debt
Book value Book value
balance provision balance provision
Quality guarantee 5286462.45 5286462.45 5452813.90 5452813.90
Total 5286462.45 5286462.45 5452813.90 5452813.90
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:
□ 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
51745.3251745.32
replacing business tax with VAT
7 days notice of deposit interest 2731229.21
Total 2782974.53 51745.32
8.Other current assets
I n RMB
Items
Year-end balance Year-beginning balance
Income tax to be certified 21213.96 27051.69
Total 21213.96 27051.69
1932021 Annual Report
9. Long-term equity investment
In RMB
Increase/decrease
Closing
Withd
Investment profit balance
Negati rawalAdjustment of Cash bonus or of
and loss
Investees Opening balance ofAdditional ve other Changes of profits Othe Closing balance impair
recognized under impai
investment invest comprehensiv other equity announced to r
ment
rment
the equity e income issue provisi
ment provi on
method sion
I. Joint venture
2. Affiliated Company
Zhaoqing Yuezhao Highway Co. Ltd. 302436218.83 53076732.52 39675000.00 315837951.35
Guangdong Jiangzhong Expressway
192252504.94133650000.0020810859.2928621724.94318091639.29
Co. Ltd.Ganzhou Gankang Expressway Co.
145774620.728343776.40154118397.12
Ltd.Ganzhou Kangda Expressway Co.
216814090.5048286927.1927000000.00238101017.69
Ltd.Shenzhen Huiyan Expressway Co.
285408755.1535557629.02320966384.17
Ltd.Guoyuan Securities Co. Ltd. 938476820.74 44593073.57 9716087.81 20696516.40 972089465.72
Guangdong Yuepu Small Refinancing
216683369.8410970165.76-4118261.287191673.05216343601.27
Co. Ltd(Note)
Hunnan Lianzhi Technology
85080974.925400932.77135519.5990617427.28
Co. .Ltd.
1942021 Annual Report
SPIC Yuetong Qiyuan Chip Power
Technology Co. Ltd. 1000000.00 -35202.65 964797.35
Subtotal 2382927355.64 134650000.00 227004893.87 9716087.81 -3982741.69 123184914.39 2627130681.24
Total 2382927355.64 134650000.00 227004893.87 9716087.81 -3982741.69 123184914.39 2627130681.24
Other note
Note：Guangdong Yueke Technology Petty Loan Co. Ltd. was renamed as Guangdong Yuepu Small Refinancing Co. Ltd in February 2021.
1952021 Annual Report
10.Other Equity instrument investment
In RMB
Items Closing balance Opening balance
Guangle Expressway Co. Ltd. 746129411.97 748348301.73
Guangdong Radio and Television
Networks investment No.1 Limited 50000000.00 50000000.00
partnership enterprise
China Everbright Bank Co. Ltd. 781046414.08 938667226.56
Huaxia Securities Co. Ltd.（Notes1）
Huazheng Asset Management Co. Ltd.（Notes2）
Kunlun Securities Co. Ltd.（Notes3）
Total 1577175826.05 1737015528.29
1962021 Annual Report
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
Amount of other Reasons for designation as Reasons for other
Dividend income consolidated income measured at fair value and consolidated income
Items Cumulative gain Cumulative loss
recognized transferred to retained changes included in other transferred to
earnings comprehensive income retained earnings
Non-transactional purpose for
Guangle Expressway Co. Ltd.shareholding
Guangdong Radio and Television Networks
Non-transactional purpose for
investment No.1 Limited partnership 652822.25 8455606.40
shareholding
enterprise
Non-transactional purpose for
China Everbright Bank Co. Ltd. 49403538.24 263485537.28
shareholding
Non-transactional purpose for
Huaxia Securities Co. Ltd.（Notes1） 5400000.00
shareholding
HuazhengAsset Management Co. Ltd. Non-transactional purpose for
1620000.00（Notes2） shareholding
Non-transactional purpose for
Kunlun Securities Co. Ltd.（Notes3） 30000000.00
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 yuan to acquire 100% equity of Huazheng Asset Management Co. Ltd. and solicited the Company's opinions. The Company replied on December 5 2005 abandoning the
preemptive right under the same conditions. The Company made provision of 1.3932 million yuan for impairment in respect of this long-term equity investment of 1.62 million
1972021 Annual Report
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.
1982021 Annual Report
11. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Houses and Construction in
Items Land use right Total
buildings progress
I. Original value
1.Opening balance 12664698.25 2971831.10 15636529.35
2.Increased amount of the period
I. Original value
1.Opening balance
2.Increased amount of the period
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 12664698.25 2971831.10 15636529.35
II.Accumulated depreciation accumulated
amortization
1.Opening balance 10694640.90 1831506.56 12526147.46
2.Increased amount of the period 147549.12 73569.36 221118.48
(1)Withdrawal or amortization 147549.12 73569.36 221118.48
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 10842190.02 1905075.92 12747265.94
III. Impairment provision
1992021 Annual Report
Houses and Construction in
Items Land use right Total
buildings progress
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 1822508.23 1066755.18 2889263.41
2.Opening book 1970057.35 1140324.54 3110381.89
(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
The land ownership is held by Guangdong Expressway Co. Ltd. and
Houses and Building 893059.37
it is impossible to apply for the real estate ownership certificate
Dali toll station management
252138.25 Transportation and other ancillary facilities Not accreditation
office house
Total 1145197.62
12. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 10639272192.02 11540066429.69
liquidation of fixed assets 9500.00
Total 10639272192.02 11540075929.69
2002021 Annual Report
(1) List of fixed assets
In RMB
Jingzhu Office
Guangfo Guanghui House and Machinery Transportation
Items Fokai Expressway equipment and Total
Expressway Expressway
Expressway buildings equipment equipment
other
Guangzhu section
I. Original price
10892817927.3
1.Opening balance 1460270190.66 6475428904.48 4824881424.98 653156798.92 1807080795.89 61427688.89 134245998.01 26309309729.13
0
2.Increased amount of
2421073.00312207724.1116808970.00-5164956.173011716.0619920495.30349205022.30
the period
（1）Purchase 11173862.02 3011716.06 7735426.86 21921004.94
（2）Transfer of project
2421073.00295997616.1110689866.0031687265.7612185068.44352980889.31
under construction
(3)Increased of Enterprise
consolidation
（4）Other 16210108.00 6119104.00 -48026083.95 -25696871.95
3.Decreased amount of
1101457.64129039.0019378135.562328790.0020521890.7343459312.93
the period
（1）Disposal or scrap 1101457.64 129039.00 19378135.56 2328790.00 4311782.73 27249204.93
（2）Other Out 16210108.00 16210108.00
10892817927.3
4.Closing balance 1460270190.66 6477849977.48 5135987691.45 669836729.92 1782537704.16 62110614.95 133644602.58 26615055438.50
0
II. Accumulated
depreciation
2012021 Annual Report
Jingzhu Office
Guangfo Guanghui House and Machinery Transportation
Items Fokai Expressway Expressway equipment and Total
Expressway Expressway buildings equipment equipment other
Guangzhu section
1.Opening balance 1460270190.66 4999612912.32 3571631502.43 2994964464.08 432913163.79 1174349065.14 49827783.08 77204103.16 14760773184.66
2.Increased amount of
486469903.27378884157.42170327458.0528676325.89151843061.242149917.2811390182.311229741005.46
the period
（1）Withdrawal 486469903.27 378884157.42 170327458.05 28676325.89 151843061.24 2149917.28 11390182.31 1229741005.46
3.Decreased amount of
711104.22122587.0512310440.122197518.503510606.8518852256.74
the period
（1）Disposal or scrap 711104.22 122587.05 12310440.12 2197518.50 3510606.85 18852256.74
4.Closing balance 1460270190.66 5486082815.59 3950515659.85 3164580817.91 461466902.63 1313881686.26 49780181.86 85083678.62 15971661933.38
II. Accumulated
depreciation
1.Opening balance 7870708.82 599405.96 8470114.78
2.Increased amount of
2889394.162889394.16
the period
（1）Withdrawal 2889394.16 2889394.16
3.Decreased amount of the
6638789.88599405.967238195.84
period
（1）Disposal or scrap 6638789.88 599405.96 7238195.84
2022021 Annual Report
Jingzhu Office
Guangfo Guanghui House and Machinery Transportation
Items Fokai Expressway Expressway equipment and Total
Expressway Expressway buildings equipment equipment other
Guangzhu section
4.Closing balance 2889394.16 1231918.94 4121313.10
IV. Book value
1.Closing book value 5406735111.71 2527334317.63 1971406873.54 205480433.13 467424098.96 12330433.09 48560923.96 10639272192.02
2.Opening book 5893205014.98 2903797402.05 1829916960.90 220243635.13 624861021.93 11599905.81 56442488.89 11540066429.69
2032021 Annual Report
⑵Temporarily idle fixed assets
In RMB
Accumulated Impairment
Items Original price Book value Remark
depreciation provision
House and
6176339.214400874.001775465.21
buildings
Machinery
2322167.001090248.061231918.94
equipment
⑶Fixed assets leased out through operating leases: None
（4）Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Transportation and other ancillary Transportation and other ancillary
175378186.85
facilities facilities，Not accreditation.
（5）liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Office equipment 9500.00
Total 9500.00
13. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 351130455.06 340611095.47
Total 351130455.06 340611095.47
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Book balance Provis Book value Book balance Provi Book value
Items ion sion
for for
deval deval
uation uation
Gualuhu Interchange project 160502763.61 160502763.61 52045974.12 52045974.12
2042021 Annual Report
Year-end balance Year-beginning balance
Book balance Provis Book value Book balance Provi Book value
Items ion sion
for for
deval deval
uation uation
Huizhou North Interchange
105046556.00105046556.00283432.73283432.73
Project
Reconstruction and Expansion
42058703.1242058703.1229547232.5829547232.58
of Sanbao to Shuikou
Reconstruction and Expansion
of Nansha-Zhuhai section of 17636216.62 17636216.62
Guangzhou-Macao Expressway
Expansion Project of Crossing
Section of Jiangxi-Shenzhen 14470943.98 14470943.98 2555353.00 2555353.00
High-speed Railway
Expansion Project of
7383321.307383321.303531207.303531207.30
Luogang-Lingkeng Section
Tanwei Bridge Ship Collision
1749246.001749246.00
Prevention Project
Intelligent Transformation
Project for Monitoring System
1535540.001535540.00
of Foshan-Kaiping Expressway
(Phase II)
Other sporadic projects 747164.43 747164.43 2778800.00 2778800.00
Transformation and Capacity
Expansion Project of Power
Distribution in Siqian Gonghe 3224884.00 3224884.00
District and Yayao Service Area
of Foshan-Kaiping Expressway
Intelligent Reconstruction
Project of Monitoring System of 1747854.66 1747854.66
Foshan-Kaiping Expressway
Reconstruction Project for
Outfield Message Signs of 2554560.56 2554560.56
Foshan-Kaiping Expressway
Smart Transformation Project of
Yayao Service Area of 2344492.58 2344492.58
Foshan-Kaiping Expressway
Upgrade and reconstruction 2117334.20 2117334.20
2052021 Annual Report
Year-end balance Year-beginning balance
Book balance Provis Book value Book balance Provi Book value
Items ion sion
for for
deval deval
uation uation
project fund for variable
message signs
Monitoring and reconstruction
project fund for
1910901.891910901.89
Guangzhou-Foshan command
road network
Construction Project for
2624661.742624661.74
Maintenance Base in 2018
Preparation of land space
control plan for reconstruction 1213005.54 1213005.54
and expansion
Civil service area charging
1266602.001266602.00
station
Construction Project of
Comprehensive Maintenance 5493791.00 5493791.00
Base
Widening Project for Northeast
Freight Car Surrounding Line of
Guangzhou-Huizhou 1919199.00 1919199.00
Expressway Underpassing
Guangzhou Railway Hub
Pavement Treatment Project 105958479.27 105958479.27
Bridge Deck Treatment Project
117493329.30117493329.30
of Dayong Viaduct
Total 351130455.06 351130455.06 340611095.47 340611095.47
2062021 Annual Report
(2) Changes of significant construction in progress
In RMB
Including:
Capitaliza Source
Project Capitalization capitalization of
Name of Opening Transferred to Other Proportion tion of of
Budget Increase End balance proces of interest
project balance fixed assets decrease % interest fundin
s interest this
rate (%) g
period
Reconstruction
and Expansion
3426206700.00 29547232.58 12712309.82 200839.28 42058703.12 76.13% 82.29 72779504.82 Other
of Sanbao to
Shuikou
Reconstruction
and Expansion
of
Nansha-Zhuhai
13326000000.00 3502229.54 14759140.08 625153.00 17636216.62 0.13% 0.13 Other
section of
Guangzhou-Ma
cao
Expressway
Gualuhu
Interchange 203460000.00 52045974.12 108470787.49 13998.00 160502763.61 78.89% 78.89 Other
project
Pavement
Treatment 186000000.00 105958479.27 64659546.12 170618025.39 91.73% 100.00 5785964.09 3305948.95 4.07% Other
Project
Bridge Deck
123000000.00 117493329.30 7886261.42 125379590.72 101.93% 100.00 8579841.36 3938652.42 4.07% Other
Treatment
2072021 Annual Report
Project of
Dayong
Viaduct
Expansion
Project of
Crossing
Section of 14790000.00 2555353.00 11915590.98 14470943.98 97.84% 97.84 Other
Jiangxi-Shenzh
en High-speed
Railway
Huizhou North
Interchange 134170000.00 283432.73 104763123.27 105046556.00 78.29% 78.29 Other
Project
Total 17413626700.00 311386030.54 325166759.18 296212453.39 625153.00 339715183.33 -- -- 87145310.27 7244601.37 --
2082021 Annual Report
(3)Provision for impairment of construction projects in the current period
None
（4）Engineering Materials：None
14.Use right assets
In RMB
House and Machinery Transportation Other
Items Total
buildings equipment equipment
1.Opening balance 21487031.29 659277.49 1007747.00 23154055.78
2.Increased amount of the
357112.19504113.56861225.75
period
（1）New lease 357112.19 504113.56 861225.75
4.Closing balance 21487031.29 357112.19 1163391.05 1007747.00 24015281.53
2.Increased amount of the
9208727.6571422.44527788.99107017.449914956.52
period
（1）Withdrawal 9208727.65 71422.44 527788.99 107017.44 9914956.52
4.Closing balance 9208727.65 71422.44 527788.99 107017.44 9914956.52
1.Closing book value 12278303.64 285689.75 635602.06 900729.56 14100325.01
2.Opening book value 21487031.29 659277.49 1007747.00 23154055.78
15. Intangible assets
(1) List of intangible assets
In RMB
The Turnpike
Items Land use right Software Total
franchise
I. Original price
1.Opening balance 1311658.00 39912285.19 318348741.86 359572685.05
2.Increased amount of the
2636504.972636504.97
period
(1) Purchase 1932544.17 1932544.17
(2)Internal Development 703960.80 703960.80
(3)Increased of Enterprise
Combination
2092021 Annual Report
The Turnpike
Items Land use right Software Total
franchise
3.Decreased amount of the
485000.00485000.00
period
（1）Disposal 485000.00 485000.00
4.Closing balance 1311658.00 42063790.16 318348741.86 361724190.02
II.Accumulated amortization
1.Opening balance 1311658.00 32458724.38 23420946.15 57191328.53
2.Increased amount of the
2829668.0033684017.0636513685.06
period
(1) Withdrawal 2829668.00 33684017.06 36513685.06
3.Decreased amount of the
485000.00485000.00
period
（1）Disposal 485000.00 485000.00
4.Closing balance 1311658.00 34803392.38 57104963.21 93220013.59
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
2102021 Annual Report
The Turnpike
Items Land use right Software Total
franchise
1.Closing book value 7260397.78 261243778.65 268504176.43
2.Opening book value 7453560.81 294927795.71 302381356.52
The intangible assets by the end of the formation of the company's internal R & D accounted 0.26% of the
proportion of the balance of intangible assets
⑵Details of Land use right failed to accomplish certification of property
None
16.Development expenses
In RMB
Increase in this period Decrease in this period
Internal
Balance in Recognize Transfer to Balance in
Items developme
year-begin d as currentnt Other year-end
intangible profit and
expenditur
assets loss
e
Smart
Party
Building 703960.80 703960.80
Cloud
Platform
Total 703960.80 703960.80
17. Long-term amortize expenses
In RMB
Balance in Increase in this Amortized Balance in
Items year-begin period expenses Other loss
year-end
Prepaid business
tax and surcharges
before
2454375.00350625.002103750.00
replacement of
business tax with
value-added tax
Total 2454375.00 350625.00 2103750.00
2112021 Annual Report
18. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
7264977.101816244.288705572.142176393.04
provisions
Deductible loss 671918486.05 167979621.51 1000101381.76 250025345.44
Asset appraisal
appreciation
190813984.6047703496.15269669149.9167417287.48
depreciation and
amortization
Deferred income 30978093.11 7744523.33 44545569.73 11136392.43
Total 900975540.86 225243885.27 1323021673.54 330755418.39
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in the fair
value of other equity 263485537.28 65871384.32 421106349.76 105276587.44
instruments
Deductible temporary
differences in the
995623507.00248905876.751124772402.32281193100.58
formation of asset
impairment
Difference of
amortization method of 4580106.28 1145026.57 2533490.83 633372.72
franchise of toll road
Total 1263689150.56 315922287.64 1548412242.91 387103060.74
（3）Deferred income tax assets or liabilities listed as net after offset：None
（4）Details of unrecognized deferred tax assets
In RMB
2122021 Annual Report
Items Balance in year-end Balance Year-beginning
Deductible loss 15342382.11 11452524.12
Assets impairment provisions 93406200.73 91984931.50
Total 108748582.84 103437455.62
（5）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance Year-beginning Remark
20221133109.041133109.04
20233129535.723129535.72
20243618779.073618779.07
20253571100.293571100.29
20263889857.99
Total 15342382.11 11452524.12 --
19. Other Non-current assets
In RMB
Balance in year-end Balance Year-beginning
Book balance Provision for Book value Book balance Provision Book value
Items devaluation for
devaluati
on
Prepaid fixed assets
24675415.3624675415.3621946578.7521946578.75
engineering fees
Prepaid business tax 415282.44 415282.44 467027.76 467027.76
Less：Part due within 1
51745.3251745.3251745.3251745.32
year
Total 25038952.48 25038952.48 22361861.19 22361861.19
20. Short-term Borrowing
（1）Short-term Borrowing
In RMB
Total Balance in year-end Balance Year-beginning
Credit Borrowing 200000000.00
Interest accrued on short-term borrowing 192500.00
2132021 Annual Report
Total 200192500.00
Note：
（2）Overdue short-term borrowings
None
21.Account payable
（1） List of account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 137346075.15 252654968.64
1-2 years（including2 years） 32260718.56 44097234.36
2-3 years（including 3 years） 30239953.68 10392605.88
Over 3 years 64640392.05 62628533.83
Total 264487139.44 369773342.71
（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
28000000.00 Unsettled
Management Dept
Guangzhou Tuzhiling
12191821.25 Unsettled
Computer technology Co. Ltd.Heshan Land and resources Bureau 10186893.60 Unsettled
Guangzhou Haohang Electronic
4727834.00 Unsettled
Technology Co. Ltd
Total 85614147.06 --
22. Prepayment received
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
2142021 Annual Report
Within 1 year（Including 1 year） 1937127.54 1473106.10
1-2 years（Including 2 years） 2777.78
2-3 years（Including 3 years）
Over 3 years 8720303.19 9835901.31
Total 10660208.51 11309007.41
(2) Significant advance from customers aging over one year
In RMB
Items Balance in year-end Unpaid/Uncarry over reason
Guanghdong Xinle Technology The rent is not before the settlement
1208054.33
Development Co. Ltd. period
Guangzhou Huanlong Expressway Co. Land rent has not reached the settlement
7115729.78
Ltd. period
Total 8323784.11 --
23.Contract liabilities
In RMB
Items Balance in year-end Balance Year-beginning
Payments received in advance 22000.00 309734.51
Total 22000.00 309734.51
24. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
I. Short-term compensation 16726198.13 447448460.13 444961026.35 19213631.91
II.Post-employment benefits - d
62652104.7462652104.74
efined contribution plans
III. Dismissal benefits 198182.02 198182.02
Total 16726198.13 510298746.89 507811313.11 19213631.91
（2）Short-term Remuneration
In RMB
2152021 Annual Report
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
1.Wages bonuses allowances
465063.49340740046.58340699546.60505563.47
and subsidies
2.Employee welfare 32369962.85 32369962.85
3. Social insurance premiums 23551217.77 23551217.77
Including ：Medical
14959123.0514959123.05
insurance
Work injury insurance 287654.22 287654.22
Maternity insurance 2354828.86 2354828.86
Other 5949611.64 5949611.64
4.Public reserves for housing 37756867.08 37756867.08
5.Union funds and staff
14578979.1011097190.109193047.4016483121.80
education fee
8.Other 1682155.54 1933175.75 1390384.65 2224946.64
Total 16726198.13 447448460.13 444961026.35 19213631.91
（3）Defined contribution plans listed
In RMB
Balance Increase in this period Payable in this period Balance in year-end
Items
Year-beginning
1. Basic old-age
35904176.8735904176.87
insurance premiums
2.Unemployment
1030413.161030413.16
insurance
3.Enterprise annuity
25717514.7125717514.71
payment
Total 62652104.74 62652104.74
25. Tax Payable
In RMB
Items Balance in year-end Balance Year-beginning
VAT 15734725.35 19253425.01
143478849.99192073414.37
Enterprise Income tax
Individual Income tax 3202322.06 2589498.58
2162021 Annual Report
City Construction tax 1044325.22 1270608.27
Education subjoin 492391.84 594019.27
Locality Education subjoin 308823.69 376577.48
Vehicle and vessel tax
Land use tax
Property tax 110493.45 45461.47
Stamp tax 240581.39 1514826.65
Other 30561.68
Total 164612512.99 217748392.78
26.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend payable 22941943.24 22262804.39
Other account payable 155028540.52 1490356555.39
Total 177970483.76 1512619359.78
（1）Interest payable ：None
（2）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 22941943.24 22262804.39
Total 22941943.24 22262804.39
Other explanations including important dividends payable that have not been paid for more than one year shall
disclose the reasons for non payment:
Among the dividends payable at the end of the period 21473837.46 yuan is the dividend of shareholders who have not paid for more
than one year which is mainly due to the failure of shareholders to provide the bank information for interest payment the application
for receiving dividends provided by shareholders who have not undergone share reform or the error in providing the bank
information for receiving dividends resulting in the failure of timely payment of dividends.
（3）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
2172021 Annual Report
Items Year-end balance Year-Beginning balance
M&A funds payable to Guanghui 21%
1221839292.00
equity
Estimated project cost 42394262.23 146192899.83
Deposit warranty and security deposit 77685535.90 83526214.67
Other 34948742.39 36710267.87
Temporary collection payable 2087881.02
Total 155028540.52 1490356555.39
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Poly Changda Highway Engineering The settlement conditions have not yet
15067509.46
Co. Ltd. been me
The settlement conditions have not yet
Yayao to Xiebian extension 12499448.48
been me
Guangdong Guanyue Road & Bridge The settlement conditions have not yet
7618479.80
Co. Ltd. been me
Guangdong Nengda High Grade The settlement conditions have not yet
3920602.10
Highway Maintenance Co. Ltd. been me
The settlement conditions have not yet
Dahao Municipal Construction Co. Ltd. 3000000.00
been me
Total 42106039.84 --
27. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 465576600.00 203536200.00
Bond payable due within 1 year
Long-term payable due within 1 year 944339.62 732075.46
Lease liabilities due within 1 year 12474474.87 9124680.86
Interest payable due within 1 year 46648953.77 62059742.01
Total 525644368.26 275452698.33
2182021 Annual Report
28.Other current liabilities
In RMB
Items Balance year-end Year-beginning balance
Tax to be rewritten 726336.48 648581.64
Total 726336.48 648581.64
29. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loan 582195000.00 657365000.00
Credit loan 4456002800.00 4523610000.00
Less:Long-term loans due within one year 465576600.00 203536200.00
Total 4572621200.00 4977438800.00
30.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 1427434086.58 1426488336.65
Total 1427434086.58 1426488336.65
2192021 Annual Report
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability
In RMB
The Pay in
Withdraw Overflow
curre curren
Name of the bond Book value Issue date Period Issue amount Opening balance interest at discount Closing balance
nt t
par amount
issue period
19 Guangdong
Expressway 680000000.00 2019.2.27 2019.3.1-2024.3.1 680000000.00 678575316.87 -450549.72 679025866.59
MTN001
20 Guangdong
Expressway 750000000.00 2020.3.13 2020.3.17-2025.3.17 750000000.00 747913019.78 -495200.21 748408219.99
MTN001
Total -- -- -- 1430000000.00 1426488336.65 -945749.93 1427434086.58
2202021 Annual Report
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
31.Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
Long-term lease liabilities 15247934.63 21369895.75
Less：Lease liabilities due within 1 year 12474474.87 9124680.86
Total 2773459.76 12245214.89
32. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 3461832.74 40406172.37
Total 3461832.74 40406172.37
(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
Medium term bill underwriting fee 2383962.25 3116037.72
Less：Part due within 1 year 944339.62 732075.46
Total 3461832.74 40406172.37
33. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Cause
Government
44545569.6413567476.5330978093.11
subsidy
Lease income 44625000.00 6375000.00 38250000.00
Total 89170569.64 19942476.53 69228093.11 --
2212021 Annual Report
34. Stock capital
In RMB
Changed（+，-）Balance Issuance
Bonus Capitalizatio Balance in year-endYear-beginning of new Other Subtotal
shares n of public
share
reserve
Total of
2090806126.002090806126.00
shares
35. Capital reserves
In RMB
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
Share premium 508711146.99 508711146.99
(1) Capital invested by investors 2508408342.99 2508408342.99
(2) Influence of business combination under
-1999697196.001999697196.00
the same control
Other capital reserves 137258063.49 71609569.29 4118261.28 204749371.50
(1) Changes in other equity of the investee
525074.49135519.594118261.28-3457667.20
under the equity accounting
（2）Other 136732989.00 71474049.70 208207038.70
Total 645969210.48 71609569.29 4118261.28 713460518.49
- The situation of change in the current capital reserve is as follows:
1. The changes in capital reserve-other equity in the current period is due to the capital increase and share
expansion of the joint venture Hunan Lianzhi Technology Co. Ltd and Guangdong Yuepu Microfinance Co. Ltd.The Company has adjusted the book value of long-term equity investment according to the diluted shareholding
ratio resulting in an increase of RMB 135519.59 and a decrease of RMB 4118261.28 in capital reserve
respectively.
2. Current capital reserve-other increases mainly due to
* The agreement signed by Guangzhou-Huizhou Company and Zengcheng District People's Government to
add interchange on Zengcheng Section of Guangzhou-Huizhou Expressway which stipulates that
Guangzhou-Huizhou Company will build Shaning Road Interchange and Xincheng Avenue Interchange and all
expenses incurred in building interchange will be borne by Zengcheng District People's Government.* The agreement signed by Guangzhou-Huizhou Company and Huizhou Transportation Bureau to add
Changkeng Interchange (tentative name) on Guangzhou-Huizhou Expressway which stipulates that
Guangzhou-Huizhou Company will build Changkeng Interchange (renamed Huizhou North Interchange) and all
the expenses incurred in the construction of Interchange will be borne by Guangzhou-Huizhou Company and
2222021 Annual Report
Huizhou Transportation Bureau will give Guangzhou-Huizhou Company a financial subsidy of RMB 1.05
million.After the above project is completed it will be managed by Guangzhou-Huizhou Company. A total of RMB
268103900.00 was received from Zengcheng District Government at the beginning of the period of which the
opening balance of capital reserve attributable to the parent company-other capital reserve was RMB
136732989.00 and RMB 140145195.50 was newly received in this period of which capital reserve attributable
to the parent company-other capital reserve increased by RMB 71474049.70 in this period.
2232021 Annual Report
36. Other comprehensive income
In RMB
Amount of current period
Less：Amount
transferred into
profit and loss Less：Prior period
Year-beginning in the current included in other After-tax
Items After-tax attribute
Year-end
balance Amount incurred period that composite income Less：Income tax attribute toto the parent balance
before income tax recognied into transfer to retained expenses minority
company
other income in the shareholder
comprehensive current period
income in prior
period
1.Other comprehensive income will be
315829762.32-159839702.24-39405203.12-120434499.12195395263.20
reclassified into income or loss in the future
Changes in fair value of investments in
315829762.32-159839702.24-39405203.12-120434499.12195395263.20
other equity instruments
2.Other comprehensive income
reclassifiable to profit or loss in subsequent -12933884.67 9716087.81 9716087.81 -3217796.86
periods
Including：Share of other comprehensive
income of the investee that cannot be
-12933884.679716087.819716087.81-3217796.86
transferred to profit or loss accounted for
using the equity method
Total of other comprehensive income 302895877.65 -150123614.43 -39405203.12 -110718411.31 192177466.34
Other notes including the adjustment of the recognition of initial amount of effective part of the cash flow hedging gains and losses transfer into arbitraged items:
2242021Annual Report
37. Surplus reserve
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus
1167785965.6357589364.931225375330.56
reserve
Total 1167785965.63 57589364.93 1225375330.56
38. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in last
3725679319.353915790810.76
period end
Adjust the total undistributed profits at the
546190.04
beginning of the period
After adjustments: Retained profits at the period
3726225509.393915790810.76
beginning
Add：Net profit belonging to the owner of the
1700406981.99867842774.78
parent company
Less: Statutory surplus reserve 57589364.93 93232912.82
Common stock dividend payable 608424582.67 882320185.17
Other（Note） 82401168.20
Retained profit at the end of this term 4760618543.78 3725679319.35
Note: other items in the previous period are the dividends corresponding to the 21% equity of major asset
restructuring transaction distributed by Guangdong Guanghui Expressway Co. Ltd. to the shareholder Guangdong
Expressway Co. Ltd.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 .
2252021Annual Report
(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 .
39.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 5214504182.23 1899514164.39 3722365693.29 1633666936.51
Other operation 73553495.70 29997861.17 67983182.97 28556759.62
Total 5288057677.93 1929512025.56 3790348876.26 1662223696.13
Whether the net profit before and after deducting non-recurring gains and losses is negative after audit
□ Yes √ No
40. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 10148595.37 7512714.60
Education surcharge 4837411.83 3578509.64
Property tax 4108460.47 5212158.72
Land use tax 2803701.59 1830767.01
Vehicle use tax 75614.77 77663.79
Stamp tax 589040.04 2310400.84
Business tax 370495.32 370495.32
Locality Education surcharge 3218282.06 2379608.64
Other 129610.93
Total 26151601.45 23401929.49
41. Administrative expenses
In RMB
Items Amount of this period Amount of last period
Wage 160631132.11 141324125.20
Depreciation 12006378.25 9870249.16
2262021Annual Report
Intangible assets amortization 2145714.88 2368807.27
Low consumables amortization 856378.64 1316594.00
Rental fee 12641157.99 12467786.77
Office expenses 7832333.51 7437025.62
Travel expenses 802598.61 573930.76
Consultation expenses 1102939.62 2595902.63
The fee for hiring agency 5345624.33 7179452.28
Listing fee 854072.73 864123.92
Information cost and maintenance fee 3821536.06 2830419.98
Other 15565575.73 15116701.99
Total 223605442.46 203945119.58
42.R& D expenses
In RMB
Items Amount of this period Amount of last period
Wage 1218145.17 315808.12
Material cost 117433.62 88495.58
Depreciation 30469.69
Low consumables amortization 2112.93
Office expenses 12252.27
Repairs cost 11988.44
Vehicle fee 15512.82
Development cost 11535779.93
Other 327243.86
Total 13270938.73 404303.70
43.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 282653629.93 264407174.38
Deposit interest income（-） -64220887.86 -50618519.70
Exchange Income and loss（Gain-） 371334.74 -1815160.91
Bank commission charge 628831.70 881757.74
Other 2281404.25 3327123.37
2272021Annual Report
Total 221714312.76 216182374.88
44.Other gains
In RMB
Items Amount of this period Amount of last period
Government Subsidy-Cancel the Special Subsidy for
13567476.5311306230.36
Provincial Toll Station Project of Expressway
Government subsidy- Stable job subsidies 1198029.54 516603.84
Government subsidy-Enterprises subsidies 339000.00
Government subsidy-- Enterprises with industrial training
1243500.00
subsidies
Maternity allowance 579838.26 440077.14
Veterans' VAT reduction and exemption 284718.89 326184.25
Withholding and remitting enterprise prepaid income tax fees 343853.85 195477.50
Veterans' VAT reduction and exemption 43938.09 34836.75
Total 17600355.16 12819409.84
45. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by
227004893.87114517784.14
equity method
Dividends earned during the holding period
50056360.4950785213.04
on investments in other equity instrument
Interest income on entrusted loans 6063838.37
Total 277061254.36 171366835.55
46. Credit impairment losses
In RMB
Items Amount of this period Amount of last period
Impairment losses on accounts
-2028919.47-2360980.71
receivable
Impairment losses on other receivable 93582.00 -96827.80
Total -1935337.47 -2457808.51
2282021Annual Report
47. Asset impairment loss
In RMB
Items Amount of this period Amount of last period
Loss on impairment of fixed assets -2889394.16 -1231918.94
Total -2889394.16 -1231918.94
48.Assets disposal income
In RMB
Source Amount of this period Amount of last period
Non-current assets disposal gains 3017370.44
Including：Income from disposal of
3017370.44
Fixed assets
Income from disposal of Intangible
assets
Total 3017370.44
49. Non-Operation income
In RMB
Recorded in the amount of
Items Amount of this period Amount of last period the non-recurring gains and
losses
Non-monetary asset exchange
gain
Gains from damage and
scrapping of non current 371681.42 371681.42
assets
Receive assets free of charge 6119104.00 6119104.00
Insurance claim income 5020697.37 3538886.07 5020697.37
Road property claim income 3436760.97 2858053.10 3436760.97
Relocation compensation
1714382.933353085.301714382.93
income
Compensation for
construction land and ground 186642.86 1210712.86 186642.86
attachments
Other 1126225.63 789104.03 1126225.63
Total 17975495.18 11749841.36 17975495.18
2292021Annual Report
50. Non-Operation expense
In RMB
The amount of non-operating
Items Amount of current period Amount of previous period gains & losses
Road rehabilitation
7821358.325167239.287821358.32
expenditure
Loss & abandonment of
753220.2513637658.30753220.25
non-current assets
Expenditure for public
12000000.0012000000.00
welfare donations
Fine 153.62 711701.58 153.62
Relocation compensation
405100.00
income
Other 1908653.45 721233.61 1908653.45
Total 22483385.64 20642932.77 22483385.64
Other note：
51. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 661629051.42 453788495.42
Deferred income tax expense 73735963.14 37621377.52
Total 735365014.56 491409872.94
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total 3162149714.84
Current income tax expense accounted by tax and relevant
790537428.72
regulations
Influence of income tax before adjustment 3731767.49
Influence of non taxable income -69102108.03
Impact of non-deductible costs expenses and losses 12850155.96
Effect of deductible losses from using previously unrecognized -199405.13
2302021Annual Report
deferred income tax assets
The current period does not affect the deferred tax assets
-2452824.44
recognized deductible temporary differences or deductible loss
Income tax expense 735365014.56
Other note
52.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 64220887.86 50618519.70
Unit current account 62196377.10 75997867.92
Net toll income received by networked toll clearing 2387993.96
Cancellation of Expressway Provincial Toll Station
55851800.00
Project
Total 126417264.96 184856181.58
Note：
（2）Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 37053815.32 47721287.38
Unit current account 45656506.01 37898902.95
Donation 12000000.00
Total 94710321.33 85620190.33
(3).Cash receivable related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Government infrastructure investment
140145195.5089083500.00
subsidies
Total 140145195.50 89083500.00
2312021Annual Report
（4）Cash paid related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Issuance fee of medium-term notes 776869.75 1122177.00
Purchase of 21% equity consideration of
1221839292.001271710284.00
Guanghui
Cash paid for the lease liabilities 8134723.18
Total 1230750884.93 1272832461.00
53. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current Amount of previous
period period
I. Adjusting net profit to cash flow from operating activities -- --
Net profit 2426784700.28 1364385006.07
Add：Credit loss preparation 1935337.47 2457808.51
Impairment loss provision of assets 2889394.16 1231918.94
Depreciation of fixed assets oil and gas assets and consumable biological assets 1229561027.39 1009578943.06
Depreciation of Use right assets 9914956.52
Amortization of intangible assets 36587254.42 26319338.62
Amortization of Long-term deferred expenses 350625.00 457642.44
Loss on disposal of fixed assets intangible assets and other long-term deferred
-3017370.44
assets
Fixed assets scrap loss 381538.83 13637658.30
Loss on fair value changes
Financial cost 283024964.67 265092013.47
Loss on investment -277061254.36 -171366835.55
Decrease of deferred income tax assets 105511533.12 54738687.74
Increased of deferred income tax liabilities -71180773.10 -41819079.34
Decrease of inventories -586318.60 57922.16
Decease of operating receivables 8323698.17 136745935.47
2322021Annual Report
Supplement Information Amount of current Amount of previous
period period
Increased of operating Payable -83674592.37 -25329718.84
Other
Net cash flows arising from operating activities 3669744721.16 2636187241.05
II. Significant investment and financing activities that without cash flows: -- --
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Financing of fixed assets leased
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 2955183190.55 2846176803.89
Less: Beginning balance of cash equivalents 2846176803.89 3052977164.15
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent 109006386.66 -206800360.26
（2）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
2955183190.552846176803.89
Cash
38214.0254482.68
Of which: Cash in stock
Bank savings could be used at any time 2954629744.81 2845600152.23
Other monetary capital could be used at
515231.72522168.98
any time
Balance of cash and cash equivalents at
2955183190.552846176803.89
the period end
54. The assets with the ownership or use right restricted
In RMB
Items Book value at the end of the period Restricted reason
Land reclamation funds in the fund
Monetary fund 1221200.00
escrow account
Total 1221200.00 --
2332021Annual Report
Other note：
VIII. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main Shareholding Ratio
Places Registrat (%)
Name of Subsidiary of ion Nature of Business Obtaining Method
Operati Place direct indirect
on
Under the same
Guang Guangzh Expressway
Guangfo Expressway Co. Ltd. 75.00% control business
zhou ou Management
combination
Guangdong Expressway Technology Guang Guangzh Technology
100.00% Investment
Investment Co. Ltd. zhou ou investment consulting
Under the same
Guangdong Guanghui Expressway Guang Guangzh Expressway
51.00% control business
Co. Ltd. zhou ou Management combination
Under the same
Jingzhu Expressway Guangzhu Zhongs Guangzh Expressway
75.00% control business
Section Co.Ltd. han ou Management
combination
Yuegao Capital Guang Guangzh Investment
100.00% Investment
Investment(Guangzhou)Co. Ltd. zhou ou management
Notes: holding proportion in subsidiary different from voting proportion: None
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee: None
Significant structure entities and controlling basis in the scope of combination: None
Basis of determine whether the Company is the agent or the principal: None
Other note：Yuegao Capital Investment(Hengqin)Co. Ltd. was renamed as Yuegao Capital
Investment(Guangzhou)Co. Ltd. in June 16 2021.
(2) Important Non-wholly-owned Subsidiary
In RMB
Shareholdin
Profit or Loss Owned Dividends Distributed Equity Balance of the
g Ratio of
by the Minority to the Minority Minority Shareholders
Name of Subsidiary Minority
Shareholders in the Shareholders in the in the End of the
Shareholder
Current Period Current Period Period
s (%)
Guangfo Expressway Co. Ltd. 25.00% 54196234.64 37982900.91 131314707.02
2342021Annual Report
Guangdong Guanghui
49.00%544666628.57643014520.461916561080.37
Expressway Co. Ltd.Jingzhu Expressway Guangzhu
25.00%127514855.0874680354.93290675385.57
Section Co.Ltd.Holding proportion of minority shareholder in subsidiary different from voting proportion
None
2352021 Annual Report
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance
Name
Current assets Non- current assets Total assets Current Liabilities Non- current liabilities Total liabilities
Guangfo Expressway Co. Ltd. 539508987.55 17935998.96 557444986.51 32186158.45 32186158.45
Guangdong Guanghui Expressway
1106203367.943200915171.314307118539.25199770257.66195999137.99395769395.65
Co. Ltd.Jingzhu Expressway Guangzhu
78321084.792167316422.402245637507.19455558150.91627377814.001082935964.91
Section Co.Ltd.Year-beginning balance
Name Non- current
Current assets Non- current assets Total assets Current Liabilities Total liabilities
liabilities
Guangfo Expressway Co. Ltd. 475293044.67 55900968.26 531194012.93 67267992.50 3520527.29 70788519.79
Guangdong Guanghui Expressway
1066412539.003451858995.854518271534.85305774405.46240583197.83546357603.29
Co. Ltd.Jingzhu Expressway Guangzhu
118177442.222272633604.382390811046.60470629108.30968818396.621439447504.92
Section Co.Ltd.In RMB
Amount of current period Amount of previous period
Name Total Cash flows from Total Cash flows from
Business income Net profit Comprehensive operating Business income Net profit Comprehensive operating
income activities income activities
2362021 Annual Report
Guangfo Expressway Co. Ltd. 452189259.01 216784938.57 216784938.57 173090933.86 333647719.92 155032248.63 155032248.63 285644355.99
Guangdong Guanghui
2153255526.581111564548.101111564548.101481786551.531616980738.55780305035.07780305035.071173180438.28
Expressway Co. Ltd.Jingzhu Expressway Guangzhu
1173205770.48510059420.32510059420.32779998964.52812354042.82301738807.80301738807.80740551536.06
Section Co.Ltd.
2372021Annual Report
(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
Proportion Accounting treatment of
Main
Registration the investment of joint
Name operating Business nature
place Indirectl venture or associated
place Directly y enterprise
Zhaoqing Zhaoqing Expressway
Zhaoqing Yuezhao Highway Co. Ltd. 25.00% Equity method
Management
Guangdong Guangdong
Expressway
Shenzhen Huiyan Expressway Co. Ltd. Shenzhen Shenzhen 33.33% Equity method
Management
Guangdong Jiangzhong Expressway Co. Zhongshan Expressway
Zhongshan 15.00% Equity method
Ltd. Management
Expressway
Ganzhou kangda Expressway Co. Ltd. Gangzhou Ganzhou 30.00% Equity method
Management
Expressway
Ganzhou Gankang Expressway Co. Ltd. Gangzhou Ganzhou 30.00% Equity method
Management
Guangdong Yuepu Small Refinancing Hand all kinds of
Guangzhou Guangzhou 15.48% Equity method
Co. Ltd small loans
Guangyuan Securities Co. Ltd. Hefei Hefei Security business 2.37% Equity method
Research and
Hunan Lianzhi Technology Co. Ltd. Changsha Changsha experimental 10.10% Equity method
development
SPIC Yuetong Qiyuan Chip Power
Guangzhou Guangzhou New energy services 5.00% Equity method
Technology Co. Ltd.Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
2382021Annual Report
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.，Yuepu Small Refinancing Co.Ltd. Hunan Lianzhi Technology Co. Ltd. and SPIC Yuetong Qiyuan Chip Power Technology Co.Ltd. holds 20% of the voting rights but has the power to participate in making decisions on their financial and oper
ating decisions and therefore deemed to be able to exert significant influence over the investee.
(2) Main financial information of significant joint venture
None
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.Total of assets 114683858604.22 90890416303.36
Shareholders’ equity attributable to
32259179385.2230841760973.08
shareholders of the parent
Pro rata share of the net assets calculated 764993833.19 731381188.20
--Goodwill 207095632.54 207095632.54
The book value of equity investments in
972089465.73938476820.74
joint ventures
Fair value of equity investment of
associated enterprises with open 796815881.40 927203934.72
quotation
Buinsess incme 6076303560.25 2115128481.79
Net profit 1871872525.11 617902373.05
Other comprehensive income 410531198.59 99219704.73
Total comprehensive income 2282403723.70 717122077.78
Dividends received from associates duri
20696516.4011940297.90
ng the year
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Joint venture： -- --
Total amount of the pro rata calculation of -- --
2392021Annual Report
the following items
Associated enterprise： -- --
Total book value of the investment 1655041215.52 1444450534.90
Total amount of the pro rata calculation of
----
the following--Net profit ms
-Nit profit 182411820.30 82311895.95
--Total comprehensive income 182411820.30 82311895.95
(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
IX. Risks Related to Financial Instruments
The company has the main financial instruments such as bank deposits receivables and payables investments
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk market risk and liquidity risk. The company’s management shall
manage and monitor these risks and ensure above risks to be controlled within certain scope.The targets and policies of risk management
The target of risk management is to obtain the proper balance between the risk and benefit to reduce the
negative impact that is caused by the risk of the Company to the lowest level and to maximize the benefits of
shareholders and other equity investors. Based on the targets of risk management the basic strategy of the
Company’s risk management is to identify and analyze the risks which are faced by the Company establish
suitable risk tolerance baseline and proceed the risk management and supervise a variety of risks timely and
reliably and control the risks within a limited range.
1.Market risk
（1）Foreign exchange risk
2402021Annual Report
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations generally. Our foreign exchange risk is
mainly related to Hong Kong Dollar. Besides annual distribution of B-share shareholder dividends other major
business activities of our Company are settled in RMB. During the reporting period due to the short credit period
of the Company's income and expenditure related to foreign currency it was not affected by foreign exchange risk.
（2）Interest rate risk
The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainly
related to floating rate bank borrowings. The Company's policy is to maintain the floating interest rate of these
borrowings and at the same time to reasonably reduce the risk of interest rate fluctuation by shortening the term of
a single loan and specifically agreeing on prepayment terms.
（3）Other price risk
The investments held by the Company are classified as financial assets measured at fair value and whose
changes are included in other comprehensive income and are measured at fair value on the balance sheet date.Therefore the Company bears the risk of changes in the securities market.
2.Credit risk
As of June 30 2021 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.X. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fir value Fir value Fir value
measurement items measurement items measurement items Total
at level 1 at level 2 at level 3
I. Consistent fair value
--------
measurement
2412021Annual Report
（3）Other equity instrument
781046414.08746129411.971527175826.05
investment
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 December 31 2021 of 3.32 yuan the final calculation of fair value was
781046414.08 yuan.
3. Fair value of financial assets and liabilities not measured at fair valueThe valuation techniques adopted and the
qualitative and quantitative information of important parameters for continuous and non-continuous level 2 fair value
measurement items
Items Fair value as of December 31 Valuation technology Unobservable input
2021 value
Investment in equity
instruments
Unlisted equity 746129411.97Enjoy the book net assets share of the invested unit
investment according to the shareholding ratio
The financial instrument listed in the tier III is the equity investment of Guangdong Guangle Expressway Co.Ltd. held by the Company. At the end of the period the fair value of the financial instrument is determined by
calculating the book net assets of the investee according to the shareholding ratio.
4. Fair value of financial assets and liabilities not measured at fair value
The Company's financial assets and liabilities measured in amortized cost mainly include: accounts receivable
other receivables contract assets short-term loans accounts payable other payables non-current liabilities due
within one year long-term loans bonds payable and long-term payables.There is no significant difference between the book value of financial assets and liabilities not measured at
fair value and the fair value.
2422021Annual Report
XI. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent The parent
Register
Redistricte company of the company of the
Name ed Nature
d capital Company's Company’s vote
address shareholding ratio ratio
Equity management
Guangdong communication Guangzh traffic infrastructure 26.8 billion
24.56%50.12%
Group Co. Ltd ou construction and railway yuan
project operation
Notes ：
Guangdong Communication Group Co. Ltd. is the largest shareholder of the Company. legal representative: Deng
Xiaohua. Date of establishment: June 23 2000. As of December 31 2021Registered capital: 26.8 billion yuan. It
is a solely state-owned limited company. Business scope：equity management organization of asset reorganization
and optimized allocation raising funds by means including mortgage transfer of property rights and joint stock
system transformation project investment operation and management traffic infrastructure construction highway
and railway project operation and relevant industries technological development application consultation and
services highway and railway passenger and cargo transport ship industry relevant overseas businesses; The
value-added communication business.The finial control of the Company was State owned assets supervision and Administration Commission of
Guangdong Provincial People's Government.
2.Subsidiaries of the Company
Subsidiaries of this enterprise see VIII(3) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the VIII-3 Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period or form balance due to related party transactions in previous period:
Name Relation with the Company
Shenzhen Huiyan Expressway Co. Ltd. Associated enterprises of the Company
Zhaoqing Yuezhao Highway Co. Ltd. Associated enterprises of the Company
Ganzhou Kangda Expressway Co. Ltd. Associated enterprises of the Company
Ganzhou Gankang Expressway Co. Ltd. Associated enterprises of the Company
Guangdong Jiangzhong Expressway Co. Ltd. Associated enterprises of the Company
Guangdong Yuepu Small Refinancing Co. Ltd Associated enterprises of the Company
2432021Annual Report
Hunan Lianke Technology Co. Ltd. Associated enterprises of the Company
4. Other Related parties
Name Relation with the Company
Guangdong Boda Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Chaohui Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong East Thinking Management Technology
Fully owned subsidiary of the parent company
Development Co. Ltd.Guangdong Litong Property Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Gaoen Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Media Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Guangfozhao Expressway 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 Jiaotong Testing Co. Ltd Fully owned subsidiary of the parent company
Guangdong Traffic Industry Investment Co. Ltd. Fully owned subsidiary of the parent company
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 Litong Property Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Union Electron Service Information technology
Fully owned subsidiary of the parent company
Co. ltd.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 Luoyang Expressway 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 Provincial Freeway Co.Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Communication Group Finance Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Read & Bridge Construction Development Co.Fully owned subsidiary of the parent company
Ltd.Guangdong Taishan Coastal Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Tongyi Expressway Service Area Co. Ltd Fully owned subsidiary of the parent company
2442021Annual Report
Name Relation with the Company
Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yangmao Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yuegan Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Rescue Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Zhaoyang Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangshenzhu Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Asphalt Co. Ltd. Fully owned subsidiary of the parent company
Guangzhou Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company
Yunfo Guangyun Expressway Co. Ltd Fully owned subsidiary of the parent company
Guangdong Tianlu New Energy Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Traffic Development Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Communication Planning & Design Institute Co.Shares of parent company
Ltd.Guangzhongjiang Expressway Project Management Dept Managed by the parent company
Hongkong- Zhuhai-Macao Connection line management center Managed by the parent company
Guangzhou Aitesi Communication equipment Co. Ltd. Associated enterprises controlled by the same parent company
Jiangmen Jianghe Expressway Co. Ltd. Associated enterprises controlled by the same parent company
Guangdong Shenshan Expressway Co. Ltd. Associated enterprises controlled by the same parent company
Guangdong Jingzhu Expressway Guangzhu North Section Co.Associated enterprises controlled by the same parent company
Ltd.Foshan Guangshan Expressway Co. Ltd. Associated enterprises controlled by the same parent company
Guangdong Feida Traffic Engineering Co. Ltd. Associated enterprises controlled by the same parent company
Poly Changda Engineering Co. Ltd. Shares of parent company
Guangdong Changda Road Conservation Co. Ltd. Shares of parent company
Guangdong Road Network Digital Media Information
Joint venture of parent company
Technology Co. Ltd
Guangdong Xiangfei Highway Engineering Supervision Co.Subsidiary of the parent company
Ltd
Guangdong Jiangzhao Expressway Management Center Managed by the parent company
Guangdong Nanyue Traffic Qingyun Expressway Management
Managed by the parent company
Center
5. List of related-party transactions
2452021Annual Report
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Amount of Amount
Over the
Content of related
Related parties current period of
trading Amount of last
transaction limit or period
previous not?
period
1.Business cost
Boly Changda Engineering Co. Ltd. Project fund service 25299515.00 43663945.00
Guangdong Union electronic services co.Service 25131901.47 22140969.83
Ltd.Guangdong Xinyue Asphalt Co. Ltd. Project fund 8889414.00
Guangdong Feida Traffic Engineering Co.Maintenance 7773274.29 7314621.02
Ltd.Guangzhou Xinyue Asphalt Co. Ltd. Purchase 7587872.00 13627554.77
Guangdong East Thinking Management Maintenance Project
6652840.0010948746.94
Technology Development Co. Ltd. funds
Maintenance Project
Guangdong Lulutong Co. Ltd. 5775057.23 36627747.85
funds
Guangdong Hualu Traffic Technology Co.Project 4512951.46 4869113.63
Ltd.Guangdong Xinyue traffic Investment Co. Maintenance Project
4366423.495947406.32
Ltd. funds
Guangdong Humen Bridge Co. Ltd. Service 3686679.96 528929.83
Guangdong Yueyun Traffic Rescue Co.Rescue service fee 3343600.00
Ltd.Guangdong Litong Technology Investment
Maintenance 1713971.99 1424414.80
Co. Ltd.Guangdong Communication Planning & Project labour
1156607.578136858.45
Design Institute Co. Ltd. service
Guangdong Tongyi Expressway Service
Service 1050181.10 604826.78
Area Co. Ltd
GuangzhouAitesi Communication
Project 993635.40 1771681.42
Equipment Co. Ltd.
2462021Annual Report
Amount of Amount
Over the
Content of related
Related parties current period of
trading Amount of last
transaction limit or period
previous not?
period
Hunan Lianzhi Monitoring Technology
Project 850700.00
Co. Ltd
Guangdong East Thinking Management Maintenance，
687200.00282800.00
Technology Development Co. Ltd. Service
Guangdong Yueyun Traffic Co. Ltd. Transportation 556127.40
Guangdong Union electronic services co. Service
38603.77
Ltd.Guangdong Expressway Media Co. Ltd. Advertising 128431.80
Guangdong Jingzhu Expressway
Service 107017.44
Guangzhu North Section Co. Ltd.Subtotal 110066556.13 158125065.88
2.Financial cost
Guangdong Communication Group Borrowing Interest
6494583.352240000.00
Finance Co. Ltd. expresses
Guangdong Communication Group Deposit interest
-39941667.46-14429931.26
Finance Co. Ltd. income
Guangdong Communication Group
Commission charge 32273.93 57483.84
Finance Co. Ltd.Guangdong Jiangzhong Expressway Co. Principal Loan
27405.001432890.00
Ltd. Interest Expenditure
Subtotal -33387405.18 -10699557.42
3.Administrative expenses
Guangdong Litong Property Investment
Management Fee 2085605.68 2787764.02
Co. Ltd.Guangdong East Thinking Management Maintenance，
1654473.111048608.53
Technology Development Co. Ltd. Service
Guangdong Tongyi Expressway Service
Service 57034.88 57955.00
Area Co. Ltd
Guangdong Expressway Media Co. Ltd. Advertising 17556.00
Guangdong Lulutong Co. Ltd. Maintenance charges 38400.00
Subtotal 3814669.67 3932727.55
2472021Annual Report
Amount of Amount
Over the
Content of related
Related parties current period of
trading Amount of last
transaction limit or period
previous not?
period
4.R & D
Scientific research
Guangdong Communication Group 2962500.00
project
Hunan Lianzhi Monitoring Technology Scientific research
850700.00
Co. Ltd project
Subtotal 3813200.00
5.Intangible assets
Guangdong East Thinking Management
Purchase assets 231017.70
Technology Development Co. Ltd.Subtotal 231017.70
6.Fixed assets
Guangdong Hualu Traffic Technology Co.Purchase assets 678764.67 1263639.96
Ltd.Guangdong Litong Technology Investment
Purchase assets 675150.00
Co. Ltd.Guangdong East Thinking Management
Purchase assets 598500.00 2939612.48
Technology Development Co. Ltd.Guangdong Feida Traffic Engineering Co.Purchase assets 400013.00 255165.00
Ltd.Guangdong Communication Planning &
Purchase assets 1141056.00
Design Institute Co. Ltd.Poly Changda Engineering Co. Ltd. Purchase assets 803433.00
Guangdong Lulutong Co. Ltd. Purchase assets 774003.00
Guangdong Xinyue Traffic Investment
Purchase assets 8327087.05
Co. Ltd.Subtotal 2352427.67 15503996.49
7. Construction in process
Poly Changda Engineering Co. Ltd. Purchase assets 275143275.83 174118816.33
Guangdong Xinyue Traffic Investment
Purchase assets 78020865.98 6093672.62
Co. Ltd.Guangdong Communication Planning & Purchase assets 15047972.50 6549774.00
2482021Annual Report
Amount of Amount
Over the
Content of related
Related parties current period of
trading Amount of last
transaction limit or period
previous not?
period
Design Institute Co. Ltd.Guangdong Hualu Traffic Technology Co.Purchase assets 12390585.09 4965661.48
Ltd.Guangdong Feida Traffic Engineering Co.Purchase assets 10460593.04 4456756.00
Ltd.Guangdong East Thinking Management
Purchase assets 1461612.00
Technology Development Co. Ltd.Guangdong Lulutong Co. Ltd. Purchase assets 364490.00
Guangdong Xiangfei Highway
Purchase assets 208829.00 188644.00
Engineering Supervision Co. Ltd
Guangdong Litong Technology Investment
Purchase assets 185000.00
Co. Ltd.Guangdong Jiaoke Testing Co. Ltd. Purchase assets 88880.00 4924163.50
Guangdong Highway Construction Co.Purchase assets 32720641.48
Ltd.Guangzhou Xinyue Asphalt Co. Ltd. Purchase assets 6094415.27
Subtotal 393372103.44 240112544.68
8.Non-operating expenses
Expenses for civil
Poly Changda Engineering Co. Ltd. engineering 3207485.00
restoration
Guangdong Xinyue Traffic Investment
Sporadic repair fees 255719.00
Co. Ltd.Guangdong Hualu Traffic Technology Co.Verification fee 5766.55
Ltd.Guangdong Lulutong Co. Ltd. Maintenance 222410.00
Guangdong Litong Technology Investment
Equipment 11000.00
Co. Ltd.Subtotal 3468970.55 233410.00
Related transactions on sale goods and receiving services
In RMB
2492021Annual Report
Related party Content Amount of current Amount of
period previous period
1.Business income
Jingzhu Expressway Guangzhu North Commission management
21805771.3719593901.34
section Co. Ltd. fee
Guangdong Provincial Freeway Co.Ltd. Project fund 4396237.98 4382576.33
Guangdong Feida Traffic Engineering Co.CPC card sales revenue 3954609.41 2621638.92
Ltd
Salary income and testing fee for
Zhaoqing Yuezhao Highway Co. Ltd. 1261683.80 1044069.06
expatriate staff
Salary income and testing fee for
Shenzhen Huiyan Expressway Co. Ltd. 1045253.97 944060.56
expatriate staff
Guangdong Road Construction Co. Ltd. Service fee and testing fee 827703.80 1122174.65
Ganzhou Gankang Expressway Co. Ltd. Salaries of expatriate staff 730675.94 594631.40
Guangdong Jiangzhong Expressway Co. Salary income project payment
650904.70530534.64
Ltd. etc
Ganzhou Kangda Expressway Co. Ltd. Salaries of expatriate staff 506038.55 590288.43
Guangdong Guangzhu West Line
Service test 463391.75 333636.67
Expressway Co. Ltd.Guangdong Chaohui Expressway Co. Ltd. Test 441132.07 422830.19
Guangdong Road & Bridge Construction
Test 384962.27 394211.89
Development Co. Ltd.Guangdong Traffic Development Co. Ltd. Water and electricity 342916.53
Guangdong Kaiyang Expressway Co. Ltd. Test 284433.96 237735.85
Guangdong Guangfo Expressway Co. Ltd. Test 264622.64 142641.51
Guangdong Boda Expressway Co. Ltd. Test 246626.81 295325.43
Guangdong Yangmao Expressway Co. Ltd. Service and test 234951.58 333264.32
Guangdong Gufangle Expressway Co. Ltd. Test 224433.96 222169.81
Guangdong Maozhan Expressway Co. Ltd. Service and test 79245.28 277482.05
Guangdong Zhaoyang Expressway Co.Test 197613.96 150000.00
Ltd.Poly Changda Engineering Co. Ltd. water and electricity 155736.83 200087.71
Guangdong Nanyue Traffic Qingyun
CPC card 122123.89
Expressway Co. Ltd.Guangdong Luoyang Expressway Co. Ltd. Test 107547.17 107547.17
Guangdong Traffic Industry Investment Test 106132.07 90566.04
2502021Annual Report
Related party Content Amount of current Amount of
period previous period
Co. Ltd.Guangdong Xinyue Traffic Investment Co.CPC card sales revenue 46877.88 128993.83
Ltd.Guangdong Expressway Media Co. Ltd. water and electricity 74814.00 23053.70
Yunfu Guangyun Expressway Co. Ltd. Test 71433.97 65377.36
Jiangmen Jianghe Expressway Co. Ltd. Test 63207.55 57547.17
Guangdong Humen Bridge Co. Ltd. Test 38387.04 33962.26
Guangdong Yueyun Traffic Rescue Co.water and electricity 30917.99
Ltd.Guangdong Litong Technology Investment Land occupation fee in the
16000.00
Co. Ltd. communication machine room
Guangdong Yueyun Traffic Co. Ltd. Test 11320.75 11320.75
Guangdong Road Nework Digital Media
Advertising 34218.33
Information Technology Co. Ltd.Guangshenzhu Expressway Co. Ltd. Service 8407.08
Guangdong Gaoen Expressway Co. Ltd. Test 79245.28
Guangdong Union electronic services co. ETC publicity and promotion fees
1479844.56
Ltd. agency service fees
Guangdong Tongyi Expressway Service
water and electricity 1256761.24
Area Co. Ltd
Subtotal 39187709.47 37810105.53
2.Non-operating income
Poly Changda Engineering Co. Ltd. Construction penalty 653302.00 93754.00
Guangdong Xinyue Traffic Investment Co.Construction penalty 5300.00
Ltd.Subtotal 653302.00 99054.00
(2) Information of related lease
The Company was lessor：
In RMB
The lease income confirmed The lease income
Name of lessee Category of lease assets
in this year confirmed in last year
Guangdong Expressway Media Co. Advertising lease
3988255.234598128.21
Ltd.Guangdong Tongyi Expressway Service Area Lease 3569880.44 2297830.86
2512021Annual Report
Service Area Co. Ltd
Guangdong Litong Technology
Communication Piping 1649376.50 1030735.24
Investment Co. Ltd.Poly Changda Engineering Co. Ltd. Equipment leasing 255176.06
Guangdong Litong Technology
Land lease 37690.80
Investment Co. Ltd.Total 9462688.23 7964385.11
- The company was lessee：
In RMB
The lease income confirmed
Lessor Category of leased assets Category of leased assets
in this year
Guangdong Litong Real Office space
9985140.689208532.51
Eatate Investment Co. Ltd
Guangzhou Yueyun Traffic
Car rental fee 873040.00 187200.00
Co. Ltd.Zhaoqing Yuezhao Highway
Advertising column lease 195288.00 253230.00
Co. Ltd.Zhaoqing Yuezhao Highway
Car rental fee 109633.92
Co. Ltd.Guangdong Litong Real Office space
103843.13102969.27
Eatate Investment Co. Ltd
Total 11266945.73 9751931.78
Note
（3）Inter-bank lending of capital of related parties
In RMB
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Guangdong
Jiangzhong Reppaid on 8 January
36000000.00 November 142018 November 132023
Expressway Co 2021
Loaned. Ltd.Loaned
（4）Rewards for the key management personnel
In RMB
2522021Annual Report
Items
Amount of current period Amount of previous period
Rewards for the key management
768.26654.15
personnel
（5） Other significant related-party transactions
√ Applicable □Not applicable
（1）Deposit business
Related party Relationship Maximum Deposit interest Beginning The amount of this period Endingdaily deposit rate range balance（10， Total amount Total amount is balance（10，limit（10， 000） for this period withdrawn for 000）000） （10000） this period
（10000）
Guangdong 300000.00 1.725%-3.57% 103110.58 1041351.20 992361.43 152100.35
Communications Controlled by the
Group Finance Co. same parent company
Ltd
（2）Loan business
Related party Relationship Beginning The amount of this period Ending
balance Total loan Total repayment balance
Loan limit Loant interest
（10，000） amount of the amount of the （10，000）
（10，000） rate range
current period current period
（10000）（10000）Guangdong 400000.00 3.15%-3.75% 20000.00 20000.00 20000.00 20000.00
Communications Controlled by the same
Group Finance Co. parent company
Ltd
* Credit extension or other financial services
Related party Relationship Business type Total amoun（t 10，000） Actual amountincurred（10，000)Guangdong Communications Controlled by the same Credit extension 220000.00 20000.00
Group Finance Co. Ltd parent company
The Company respectively signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 25 2017; and signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 22 2017 respectively joined the cash pool of Guangdong Communications Group
Finance Co. Ltd.Guangdong Guanghui Expressway Co. Ltd respectively signed the "Cash Management Business Cooperation
Agreement" with Guangdong Communications Group Finance Co. Ltd and Agricultural Bank of China Co. Ltd
2532021Annual Report
Guangdong Branch on May 19 2020 joined the cash pool of Guangdong Communications Group Finance Co.Ltd.
(6) Other related-party transactions
-On June 15 2016The company’s 29th meeting (Provisional) of the seventh board of directors was convened.The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project of
Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting agreed
that Guangdong Provincial Fokai Expressway Co. Ltd entrusts Guangdong Provincial Highway Construction Co.Ltd with the construction management of the renovation and expansion project of Sanbao-to-Shuikou Section of
Shengyang-to-Haikou National Expressway and handling the related matters of the entrustment of the construction
management.On March 25 2021 the Sixteenth Meeting of the Ninth Board of Directors of the Company held and
reviewed the Proposal on the Company's Estimated Daily Related Party Transactions in 2021. It is estimated that
the daily related party transactions include the Agreement on the Entrusted Management of the Preliminary Work
of the Reconstruction and Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway signed
by Beijing-Zhuhai Expressway Guangzhou-Zhuhai Section Co. Ltd. and Guangdong Highway Construction Co.Ltd. in which the latter is responsible for the main management responsibilities and all the preliminary work
before the approval of the reconstruction and expansion project.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Guangdong Xinyue Traffic Investment
Contract assets 113642.50 119242.50
Co. Ltd.Guangdong Feida Traffic Engineering
Contract assets 48230.00 48230.00
Co.Ltd.Guangdong Jiangzhong Expressway Co.Contract assets 8412.00 8412.00
Ltd.Guangdong Nanyue Traffic Qingyun
Contract assets 6900.00
Expressway Management Center
Guangdong Road Construction
Contract assets 25262.45
Development Co. ltd.Contract assets Zhaoqing Yuezhao Highway Co. Ltd. 22667.85
Contract assets Guangzhenzhu Expressway Co. Ltd. 9096.00
Guangdong Road Construction
Contract assets 7200.00
Development Co. ltd.
2542021Annual Report
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Contract assets Guangdong Boda Expressway Co. Ltd. 4530.99
Contract assets Guangdong Boda Expressway Co. Ltd. 2700.00
Total 177184.50 247341.79
Account Guangdong Union electron Service Co.
78368502.10100047025.70
receivable Ltd.Account Jingzhu Expressway Guangzhu North
7783650.005980163.99
receivable Section Co. Ltd.Account Guangdong Feida Traffic Engineering
5531000.003274356.0045916.00
receivable Co. Ltd.Account
Guangdong Humen Bridge Co. Ltd. 2083918.33 11044082.54
receivable
Account
Guangdong Expressway Media Co. Ltd. 1854769.00 1966548.00
receivable
Account Guangdong Litong Technology
338298.13
receivable Investment Co. Ltd.Account
Poly Changda Engineering Co. Ltd. 265054.16
receivable
Account
Guangdong Provincial Freeway Co.Ltd. 203632.00 21232.00
receivable
Account Guangdong Xinyue Traffic Investment
94301.60300009.20148208.50
receivable Co. Ltd.Account
Guangdong Road Construction Co. ltd. 54256.00 1037305.45 65491.20
receivable
Account
Shenzhen Huiyan Expressway Co. Ltd. 51000.00
receivable
Account Guangdong Road Bridge Construction
29025.1561891.30
receivable Development Co. Ltd.Account
Guangzhenzhu Expressway Co. ltd. 18192.00 69736.00
receivable
Account
Guangdong Boda Expressway Co. Ltd. 4530.99 22740.00
receivable
Account Guangdong Jiangzhong Expressway Co.
19708.00
receivable Ltd.Account Guangdong Chaohui Expressway Co.
7367.20
receivable Ltd.
2552021Annual Report
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Account
Guangdong Yueyun Traffic Co. Ltd. 15032.00
receivable
Account Guangdong Guangle Expressway Co.
7248.00
receivable Ltd.Account Guangdong Guangzhu West Line
223500.00
receivable Expressway Co. Ltd.Total 96680129.46 124097945.38 259615.70
Advanced
Zhaoqing Yuezhao Highway Co. Ltd. 216750.00 151938.00
payment
Advanced Guangdong Feida Traffic Engineering
149400.00
payment Co. Ltd.Total 216750.00 301338.00
Dividend
Ganzhou Kangda Expressway Co. Ltd. 1500000.00
Receivable
Total 1500000.00
Other Account Guangdong Litong Real Estate Investment
1653447.361666147.36
receivable Co. Ltd.Other Account
Guangdong Expressway Media Co. Ltd. 649386.62 1218110.44
receivable
Other Account
Guangdong Provincial Freeway Co.Ltd. 463491.88 463491.88
receivable
Other Account
Zhaoqing Yuezhao Highway Co. Ltd. 350000.00 350000.00
receivable
Other Account Guangdong Union electron Service Co.
50000.0050000.00
receivable Ltd.Other Account Guangdong Litong Real Estate Investment
30004.0016268.00
receivable Co. Ltd.Other Account Guangdong Guangzhu West Line
20000.00
receivable Expressway Co. Ltd.Other Account
Poly Changda Engineering Co. Ltd. 10124.14
receivable
Other Account
Ganzhou Gankang Expressway Co. Ltd. 45000000.00
receivable
Other Account Guangdong Xinyue Traffic Investment
5340.03
receivable Co. Ltd.
2562021Annual Report
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt Balance of Bad debt
Book Provision Book Provision
Other Account
Guangshenzhu Expressway Co. Ltd. 60640.00
receivable
Other Account
Guangdong Boda Expressway Co. Ltd. 22740.00
receivable
Total 3196329.86 48882861.85
Other
Non-Current Guangdong Road Construction Co. Ltd. 7089990.48 7089990.48
Assets
Other
Non-Current Guangdong Traffic Development Co. Ltd. 333398.00
Assets
Other
Guangdong Tianlu New Energy
Non-Current 333398.00
Investment Co. Ltd.Assets
Other
Non-Current Poly Changda Engineering Co. Ltd. 11599273.00
Assets
Total 7423388.48 19022661.48
（2）Payables
In RMB
Amount at year
Name Related party Amount at year end beginning
Guangdong Communication Group Finance Co.Short-term loan 200192500.00
ltd.Total 200192500.00
Account payable Poly Changda Engineering Co. Ltd. 29736553.34 25621536.30
Guangzhongjiang Expressway Project
Account payable 28000000.00 28000000.00
Management Dept
Account payable Guangdong Xinyue Traffic Investment Co. Ltd 10405248.06 13149675.40
Account payable Guangdong Feida Traffic Engineering Co. Ltd. 5035975.88 500864.10
Account payable Guangdong Hualu Traffic Technology Co. Ltd. 4960992.02 2198660.67
Account payable Guangzhou Xinyue Asphalt Co. Ltd. 2773825.00 47362.94
Account payable Guangdong Humen Bridge Co. Ltd. 2596817.45
2572021Annual Report
Amount at year
Name Related party Amount at year end beginning
GuangzhouAitesi Communication Equipment
Account payable 2547594.00 1283018.78
Co. Ltd.Account payable Guangdong Lulutong Co. Ltd. 2525256.06 3560871.60
Guangdong East Thinking Management
Account payable 2331700.01 1584416.70
Technology Development Co. Ltd.Guangdong Communication Planning & Design
Account payable 1759707.90 8929645.80
Institute Co. Ltd.Guangdong Litong Technology Investment Co.Account payable 1291067.95 85074.95
Ltd.Account payable Guangdong Provincial Freeway Co.Ltd. 1245443.50 8746491.18
Account payable Guangdong Changda Road Maintenance Co. Ltd. 309101.00 309101.00
Account payable Guangdong Yueyun Traffic Co. Ltd. 168277.20 268021.00
Account payable Guangdong Union Electron Service Co.Ltd. 50286.78 254011.26
Account payable Guangdong Jiaoke Testing Co. Ltd. 88880.00
Total 95737846.15 94627631.68
Guangdong Road Network Digital Media
Advance received 2777.78
Information Technology Co. Ltd.Total 2777.78
Other Payable account Poly Changda Engineering Co. Ltd. 17126203.40 20042113.05
Other Payable account Guangdong Xinyue Traffic Investment Co. Ltd. 4272693.60 1889981.61
Other Payable account Guangdong Hualu Traffic Technology Co. Ltd. 2084177.53 1327451.00
Other Payable account Guangdong Feida Traffic Engineering Co. Ltd. 1628931.87 1700740.34
Other Payable account Guangdong Changda Road Maintenance Co. Ltd. 1630765.00 1630765.00
Other Payable account Guangdong Xinyue Traffic Investment Co. Ltd. 1380379.20 171809.00
Other Payable account Guangdong Lulutong Co. Ltd. 1127575.62 1084995.15
Other Payable account Guangzhou Xinyue Asphalt Co. Ltd. 1054919.00 567221.00
Guangzhongjiang Expressway Project
Other Payable account 200000.00 200000.00
Management Dept
Guangdong East Thinking Management
Other Payable account 191674.29 58991.40
Technology Development Co. Ltd.Guangdong Litong Technology Investment Co.Other Payable account 135772.00 167591.50
Ltd.Guangdong Communication Planning & Design
Other Payable account 120422.00 238479.70
Institute Co. Ltd.
2582021Annual Report
Amount at year
Name Related party Amount at year end beginning
Guangdong Tongyi Expressway Service Area Co.Other Payable account 120000.00 120000.00
Ltd.Other Payable account Guangdong Expressway Media Co. Ltd. 50000.00 70000.00
Other Payable account Guangdong Highway Construction Co. Ltd. 40459.66
Other Payable account Guangdong Yueyun Traffic Rescue Co. Ltd. 2900.00 900.00
Other Payable account Guangdong Provincial Freeway Co.Ltd. 1221839292.00
Other Payable account Guangdong Union Electron Service Co.Ltd. 956272.04
Total 31166873.17 1252066602.79
Contract liabilities Guangdong Feida Traffic Engineering Co. Ltd. 22000.00
Total 22000.00
Non-current liabilities due 1 Guangdong Litong Real estate Investment Co.
11862198.24
year Ltd.Non-current liabilities due 1 Guangdong Communication Group Finance Co.
229166.68
year ltd.Non-current liabilities due 1
Zhaoqing Yuezhao Highway Co. Ltd. 111862.55
year
Non-current liabilities due 1
Guangdong Jiangzhong Expressway Co. ltd. 43065.00
year
Total 12203227.47 43065.00
Guangdong Litong Real estate Investment Co.Lease Liabilities 2445724.58
Ltd.Total 2445724.58
Guangdong Communication Group Finance Co.Long-term loans 200000000.00
ltd.Total 200000000.00
Long-term payable Guangdong Jiangzhong Expressway Co. ltd. 36000000.00
Total 36000000.00
2592021Annual Report
7. Related party commitment
None
XII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
None
XIII. Commitments
1. Significant commitments
Significant commitments at balance sheet date
None
2. Contingency
(1) Significant contingency at balance sheet date
(2) The Company have no significant contingency to disclose also should be stated
None
XIV. Events after balance sheet date
1、Important non adjustment matters
On February 18 2022 the company received the notice of Guangdong Provincial Department of transportation on
2602021Annual Report
matters related to the disposal of Guangzhou Foshan expressway toll expiration issued by Guangdong Provincial
Department of transportation [2022] No. 24. The main contents are as follows: (1) the toll collection of Guangzhou
Foshan expressway will be stopped from 0:00 on March 3 2022 and the existing toll collection facilities will be
retained to operate as usual in the way of zero rate All vehicles passing through this section shall be exempted
from vehicle tolls and vehicle tolls of other sections shall be charged on behalf of others; (2) After the suspension
of toll collection Guangfo Expressway Co. Ltd. will continue to be responsible for the management and
maintenance of Guangfo Expressway.At present the company is evaluating the impact of the matter on the company.
2.Profit distribution
In RMB
Profit or dividend to be distributed 1191759491.82
XVI.Other significant events
1. Segment information
The company's business for the Guangfo Expressway the Fokai Expressway Guanghui Expressway and Jingzhu
Expressway Guangzhu Section toll collection and maintenance work the technology industry and provide
investment advice no other nature of the business no reportable segment.
2612021 Annual Report
2.Government Subsidy
(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method
Subsidy item Category Opening balance New subsidy amount inThe carry-over inOther changesClosing balance Presentation items carriedAsset-related/reven
current period current period is over into profit or loss in theue-related
included in profit current period
and loss amount
Cancel the special subsidyFinancial 44545569.64 13567476.53 30978093.11 Other income Assets related
for the expresswayappropriation
provincial toll station
project
(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 currentPresentation items included in profit or loss inAsset-related/revenue-related
period the current period
Subsidy for post stabilization Subsidy for post stabilization 1198029.54 Other income Income related
Work with training instead of Subsidy for post stabilization 1243500.00 Other income Income related
training subsidies
Enterprises with industrial Subsidy for post stabilization 339000.00 Other income Income related
training subsidies
2622021Annual Report
3.Other important transactions and events have an impact on investors decision-making
（1）The Company's plan to purchase 21% equity of Guangdong Guanghui Expressway Co. Ltd. (hereinafter
referred to as "Guanghui") held by Guangdong Expressway Co. Ltd. (hereinafter referred to as "Guangdong
Expressway") by payment in cash and related matters have been adopted by the resolution of the third
extraordinary general meeting of shareholders in 2020. According to the Profit Compensation Agreement signed
by Guangdong Expressway and the Company it is agreed that Guangdong Expressway shall undertake the
compensation obligation when the actual net profit of Guanghui is less than the predicted net profit within the
compensation period. The compensation period is the year when the transaction is completed and the next two
years thereafter namely 2020 2021 and 2022. After negotiation between the Company and Guangdong
Expressway the predicted net profit of Guanghui after deducting non-recurring gains and losses in 2020 2021 and
2022 is RMB 652477500 RMB 1112587300 and RMB 1234200900 respectively. Within the compensation
period if the accumulated realized net profit at the end of any fiscal year of Guanghui does not reach the
accumulated predicted net profit Guangdong Expressway will compensate the company in cash and the specific
compensation amount paid by Guangdong Expressway in that year will be calculated and determined according to
the following formula: current compensation amount promised for performance = (accumulated predicted net
profit as of the end of the current period - accumulated realized net profit as of the end of the current period) ÷ sum
of predicted net profits of each year within the compensation period × transaction price of the underlying assets -
accumulated compensated amount of Guangdong Expressway. When the compensation amount calculated in each
year is less than the RMB 0 the value shall be taken as RMB 0 and the compensated amount shall not be reversed.The net profit of Guangzhou-Huizhou Company (excluding non-recurring gains and losses) in 2020 was
RMB 769232600 RMB 116755100 more than the promised amount; the net profit of Guangzhou-Huizhou
Company (excluding non-recurring gains and losses) in 2021 was RMB 1105444400 RMB 7142900 less than
the promised amount; by the end of 2021 the accumulated net profit (excluding non-recurring gains and losses)
was RMB 1874677000 RMB 109612200 more than the promised amount.The Company intends to transfer 100% equity of Guangdong Expressway Technology Investment Co. Ltd. to
Guangdong Leatop Technology Investment Co. Ltd. and the transaction-related work is being carried out in an
orderly manner.
2632021 Annual Report
XVI..Notes of main items in financial reports of parent company
1.Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category
Amount Proportion( Amoun Proportion Book value Amount Proportio Amount Proportion Book value
%) t (%) n(%) (%)
Of which
Accrual of bad debt provision by
24208692.49100.00%24208692.4927004827.41100.00%100.00%27004827.41
portfolio
Of which：
Total 24208692.49 24208692.49 27004827.41 27004827.41
Accrual of bad debt provision by single item: None
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 24208692.49
Total 24208692.49
2642021Annual Report
(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
23870394.3698.60%
Co. Ltd.Guangdong Litong Technology
338298.131.40%
Investment Co. Ltd.Total 24208692.49 100.00% --
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
2.Other receivable
In RMB
Items
Year-end balance Year-beginning balance
Dividend receivable 1205472.90 2705472.90
Other receivable 5680509.70 51442641.63
Total 6885982.60 54148114.53
（1）Interest receivable：None
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment 1205472.90 1205472.90
2652021Annual Report
No.1 Limited partnership enterprise
Ganzhou Gankang Expressway Co. Ltd. 1500000.00
Total 1205472.90 2705472.90
2）Significant dividend receivable aged over 1 year
I n RMB
Whether or not the
Balance in Reasons for impairment and the
Items) Aging
year-end non-recovery basis for its
determination
The partnership
agreement expires and
Guangdong Radio and Television
can be recovered after No it can be recovered
Networks investment No.1 Limited 120547290.00 3-4 years
the extension in the future
partnership enterprise
procedures are
completed
Total 120547290.00 -- -- --
2662021 Annual Report
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Balance in year-end Balance Year-beginning
Book balance Bad debt provision Book balance Bad debt provision
Category Expected Expected
Proportion Book value Proportion Book value
Amount Amount credit loss Amount Amount credit loss
(%)(%)
rate(%) rate(%)
Other receivables
for individual bad 30844110.43 84.45 30844110.43 100 0 30844110.43 37.44 30844110.43 100 0
debt provision
Other receivables
for bad debt
provision
according to the 5680509.70 15.55 5680509.70 51536223.63 62.56 93582.00 0.18 51442641.63
combination of
credit risk
characteristics
Total 36524620.13 / 30844110.43 / 5680509.70 82380334.06 / 30937692.43 / 51442641.63
2672021Annual Report
Accrual of bad debt provision by single：
In RMB
Bad Debt Reserves Closing book balance
Expected credit loss
Book balance Bad debt provision Reason
rate(%)
Bad debts were
Kunlun Securities Co.
30844110.43 30844110.43 100.00 withdrawn in full in
Ltd
bankruptcy
Total 30844110.43 30844110.43 / /
In the portfolio Disclosure by aging
In RMB
Balance in year-end
Aging
Other receivable Bad debt provision Expected credit loss rate(%)
Within 1 year 963300.00
Total 963300.00
In the portfolio other receivables with bad debt provision by other methods:
In RMB
Name Balance in year-end Balance Year-beginning
Deposit money and quality guarantee fund
2102176.362489275.36
combination
Other 2615033.34 3088614.27
Subtotal 4717209.70 5577889.63
Less：Bad debt provision
Total 4717209.70 5577889.63
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Bad Debt Reserves Expected credit Expected credit loss over Expected credit losses for Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January
93582.0030844110.4330937692.43
12021
Balance as at January
————————
12021 in current
Turn back in this
-93582.00-93582.00
period
Balance as at 30844110.43 30844110.43
2682021Annual Report
December 312021
Changes in significant book balances for loss preparation current period
□ Applicable √ Not applicable
3） Accounts receivable withdraw reversed or collected during the reporting period
None
4)The actual write-off other accounts receivable: None
5) Other receivables are classified by the nature
In RMB
Nature Closing book balance Opening book balance
Securities trading settlement funds 30844110.43 30844110.43
Less receivable 45000000.00
Deposit 2102176.36 2490271.36
Petty cash 1519593.22 2140410.04
Other 2058740.12 1905542.23
Subtotal 36524620.13 82380334.06
Less：Bad debt provision 30844110.43 30937692.43
Total 5680509.70 51442641.63
6) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of
the total year Closing
Name Nature Closing balance Aging end balance of balance of bad
the accounts debt provision
receivable(%)
Securities trading settl Over 5
Kunlun Securities Co.Ltd 30844110.43 84.45% 30844110.43
ement funds years
Deposit 1630467.36 1-2 years 4.53%
Guangdong Litong Real Estates
Investment Co. Ltd. Within 122980.00
year
China Railway No.18 Bureau Within 1
Surrogate payment 963300.00 2.64%
Group Co. Ltd. year
Guangdong Provincial Freeway Entrusted management Over 5
463491.881.27%
Co.Ltd. fee years
2692021Annual Report
Vehicle parking Within 1
4200.001.15%
deposit year
Water and electricity
92117.00 1-2 years
Savills costs working capital
Office building
management fee 322408.00 1-2 years
deposit
Total -- 34343074.67 -- 94.03% 30844110.43
(7) Accounts receivable involved with government subsidies
None
(8) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
(9) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
2702021 Annual Report
3. Long-term equity investment
In RMB
End of term Beginning of term
Items
Book Balance Impairment provision Book value Book Balance Impairment provision Book value
Investment in subsidiaries 3257062345.85 3257062345.85 3232062345.85 3232062345.85
Investment in joint ventures
2535548456.612535548456.612297846380.722297846380.72
and associates
Total 5792610802.46 5792610802.46 5529908726.57 5529908726.57
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period
Withdrawn Closing balance ofName Opening balance Decreased Closing balance
Add investment impairment Other impairment provision
investment
provision
Jingzhu Expressway Guangzhu
871171883.08871171883.08
Section Co. Ltd.Guangfo Expressway Co. ltd. 154982475.25 154982475.25
Guangdong Expressway
95731882.4295731882.42
Technology Investment Co. Ltd.Yuegao Capital Investment
84500000.0025000000.00109500000.00
(Guangzhou) Co. Ltd.Guanghui Expressway Co. Ltd. 2025676105.10 2025676105.10
2712021 Annual Report
Total 3232062345.85 25000000.00 3257062345.85
2722021 Annual Report
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Decre Announced for Provisio balance of
Name Opening balance Investment OtherIncrease in ase in Other changes in distributing n for Closing balance
income under comprehensi Other impairment
investment invest equity cash dividend impairm
equity method ve income provision
ment or profit ent
I. Joint ventures
II. Associated enterprises
Guangdong Jiangzhong
192252504.94133650000.0020810859.2928621724.94318091639.29
Expressway Co. Ltd.Ganzhou Gankang
145774620.728343776.40154118397.12
Expressway Co. Ltd.Ganzhou Kangda
216814090.5048286927.1927000000.00238101017.69
Expressway Co. Ltd.ShenzhenHuiyan Expressway
285408755.1535557629.02320966384.17
Co. Ltd.Zhaoqing Yuezhao Highway
302436218.8353076732.5239675000.00315837951.35
Co. Ltd.Guoyuan Securities Co.Ltd. 938476820.74 44593073.57 9716087.81 20696516.40 972089465.72
Guangdong Yuepu Small
216683369.8410970165.76-4118261.287191673.05216343601.27
Refinancing Co. Ltd
Subtotal 2297846380.72 221639163.75 9716087.81 -4118261.28 123184914.39 2535548456.61
Total 2297846380.72 2535548456.61
2732021Annual Report
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Revenue Cost Revenue Cost
Main business 1454377306.80 714045421.17 961484310.59 650430454.36
Other 14987127.57 4588762.80 13956071.99 5240167.71
Total 1469364434.37 718634183.97 975440382.58 655670622.07
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income accounted
1007249778.63565261660.63
by cost method
Long-term equity investment income accounted
221639163.75343597391.91
by equity method
Investment return on investments held to maturity
50056360.4950785213.04
during the holding period
Interest income from debt investment during
37923704.5950332058.95
holding period.Total 1316869007.46 1009976324.53
XVII. 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 4350214.54
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 16348006.07
country’s unified standards
Net amount of non-operating income and expense except the aforesaid items -5840734.56
Other non-recurring Gains/loss items 1252349.09
Less :Influenced amount of income tax 4027139.54
Influenced amount of minor shareholders’ equity (after tax) 4767353.02
2742021Annual Report
Total 7315342.58 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□Applicable√ Not applicable
None
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)
Weighted EPS（Yuan/share）
Profit as of reporting period average ROE
(%) EPS-basic EPS-diluted
Net profit attributable to common
20.11%0.810.81
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
deduction of non-recurring profit 20.03% 0.81 0.81
and loss
3. Differences between accounting data under domestic and overseas accounting standards
（1）．Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable
（2）. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.□ Applicable□√ Not applicable
(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign accounting standa
rds. If the data that has been audited by an overseas audit institution is adjusted for differences the name of the ove
rseas institution should be indicated
None
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