Guangdong Provincial Expressway Development Co. Ltd.The Semi-Annual Report 2023

August 2023I. Important Notice Table of Contents and Definitions

The Board of Directors the Supervisory Committee as well as all directors supervisors and senior management

staff of the Company warrant that this Report is factual accurate and complete without any false record

misleading statement or material omission. And they shall be jointly and severally liable for that.Mr.Miao Deshan Company principal Mr. Wang Chunhua General Manager Mr. Lu Ming Chief of the

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

authenticity and completeness of the financial report enclosed in this Semi-annual report.All the directors have attended the meeting of the board meeting at which this report was examined.The 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 Company has no plan of cash dividends carried out bonus issued and capitalizing of common reserves either.Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

3Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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.

4Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Definition

Terms to be defined Refers to Definition

Reporting period Refers to January 1 2023 to June 302023

The semi-annual report of the company was

Reporting date Refers to approved by the board of directors of 2023 that is

August 28 2023

YOY Refers to Compared with January-June 2022

The Company This Company The Guangdong Provincial Expressway DevelopmentRefers to

Group Guangdong Expressway Co.Ltd.Guangfo Company Refers to Guangdong Guangfo Expressway Co. Ltd.Guanghui Company Refers to Guangdong Guanghui Expressway Co. Ltd.Provincial Expressway Refers to Guangdong Provincial Expressway Co. Ltd.

5Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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 Miao Deshan

2. Contact person and contact manner

Board secretary Securities affairs Representative

Name Yang Hanming Liang Jirong

46/F Litong Plaza No.32 Zhujiang East 45/F Litong Plaza No.32 Zhujiang East

Contact address Road Zhujiang New City Tianhe Road Zhujiang New City Tianhe

District Guangzhou District Guangzhou

Tel 020-29004619 020-29004523

Fax 020-38787002 020-38787002

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

3. Other

1). Way of contact

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

in reporting period or not

□ Applicable √ Not applicable

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

reporting period found more details in annual report 2022.

2). Information inquiry

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

□ Applicable √ Not applicable

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

details please find the Annual Report 2022.

3). Other relevant information

Did any change occur to other relevant information during the reporting period

□ Applicable √ Not applicable

4. Summary of Accounting Data and Financial Indicators

Whether it has retroactive adjustment or re-statement on previous accounting data

6Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

√Yes □ No

Retroactive adjustment or restatement of causes

Accounting policy change

YoY+/-

Same period of last year

（%）

Reporting period

After

Before adjustment After adjustment

adjustment

Operating income（yuan） 2340436775.08 2057420809.68 2057420809.68 13.76%

Net profit attributable to the shareholders of

885644187.99773786851.68773736908.2914.46%

the listed company（yuan）

Net profit after deducting of non-recurring

gain/loss attributable to the shareholders of 913683625.12 743090095.19 743040151.80 22.97%

listed company（yuan）

Cash flow generated by business operation net

2013917191.701443551266.301443551266.3039.51%（yuan）

Basic earning per share(yuan/Share) 0.42 0.37 0.37 13.51%

Diluted gains per share(yuan/Share) 0.42 0.37 0.37 13.51%

Weighted average income/asset ratio（%） 9.30% 8.45% 8.45% 0.85%

YoY+/-

As at the end of last year

As at the end of the （%）

reporting period After

Before adjustment After adjustment

adjustment

Gross assets（yuan） 21477092071.77 20267197153.88 20267998963.78 5.97%

Shareholders’ equity attributable to

9074979474.419075877244.129075659162.80-0.01%

shareholders of the listed company（yuan）

Reasons for the changes in accounting policies

On November 30 2022 the Ministry of Finance issued the Notice on Printing and Distributing the No.

16Interpretation of Accounting Standards for Business Enterprises (No. 31[2022]Cai Hui).According to the

relevant requirements of the No. 16 Interpretation of Accounting Standards for Business Enterprises the

Company shall make corresponding adjustments to the relevant accounting policies originally adopted. Adopted

by the resolution of the seventh meeting of the 10th session of the Board of Directors of the Company on March

20 2023 the Company implements the relevant provisions of the No. 16 Interpretation of Accounting

Standards for Business Enterprises from January 1 2023.

5. Differences between accounting data under domestic and overseas accounting standards

1).Simultaneously pursuant to both Chinese accounting standards and international accounting

standards disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable

None

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

Chinese accounting standards.□ Applicable √Not applicable

7Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

None

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

√Applicable □Not applicable

In RMB

Items Amount Note

Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision

-15753.62

is made)

Government subsidies recognized in current gain and loss(excluding those closely related to the

5654550.96

Company’s business and granted under the state’s policies)

The impairment provision for the advance expenses that have occurred but need to be defined from the

-43681523.62

source of funds

Net amount of non-operating income and expense except the aforesaid items 1923823.88

Other non-recurring Gains/loss items 795422.82

Less :Influenced amount of income tax 2088521.91

Influenced amount of minor shareholders’ equity (after tax) -9372564.36

Total -28039437.13

Details of other profit and loss items that meet the non-recurring profit and loss definition

√Applicable□ Not applicable

Due to the special nature of the impairment provision for management and maintenance expenses of the

Guangzhou-Foshan Expressway that has been advanced but the source of funds needs to be clarified it will

affect the normal judgment to the Company's operating performance and profitability by the user of the report.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.

8Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

III. Management Discussion & Analysis

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

The Company's main business in developing and operating expressway and big bridges. It is one of the main

institutions of developing expressway and big bridge in Guangdong Expressway System. The expressway industry

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

Expressway Guangzhu Section and Guanghui Expressway investment in technological industries

and provision of relevant consultation while investing in

Shenzhen Huiyan Expressway Co. Ltd. Guangdong Jiangzhong Expressway Co. Ltd. Zhaoqing Yuezhao Expre

ssway 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. China

Everbright Bank Hunan Lianzhi Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.，CMST Nanjing Intelligent Logistics Technology Co. Ltd. Shenzhen Garage Electric Pile Technology Co.Ltd.and Beijing Institute of Architectural Design.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.II. 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

highway And many of the company’s equity-participation expressways that are part of the main skeleton of the

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

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

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

of GDP so that provides the stable rising demand for the company.III. Main business analysis

General

Whether the same as the main business disclosure engaged in the company during the reporting period

□ Yes √No

During the reporting period the domestic economy gradually improved and the traffic flow and the toll

income of the Company's participation-in highway projects increased steadily.Volume of vehicle traffic Toll income in the Toll income in the first half Increase

in the first half year of first half year of year of 2023（Ten /Decrease(%）

2023(Per unit) 2023 thousand）

Guangfo Expressway 45879144 26.22% 0 -100.00%

Fokai Expressway 43909980 17.09% 73431.98 15.28%

Jingzhu Expressway 35207721 27.86% 55839.06 27.64%

9Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Guangzhu East Section

Guanghui Expressway 43671056 20.98% 101783.89 15.61%

Huiyan Expressway 25545904 20.09% 10660.57 10.02%

Guangzhao Expressway 20467900 25.02% 26335.13 17.06%

Jiangzhong Expressway 25015753 -4.08% 15813.19 -10.59%

Kangda Expressway 760016 28.61% 14483.87 5.06%

Gangkang Expressway 2550877 33.04% 11693.57 29.65%

Guangle Expressway 19825231 5.20% 153652.08 -0.56%

Note：Guangfo Expressway stopped toll collection from 00:00 on March 3 2022.Year-on-year change of main financial data

In RMB

YOY

This report Same period last

change Cause change

period year

（%）

Operating income 2340436775.08 2057420809.68 13.76%

Operating cost 740670310.49 696143722.50 6.40%

Administrative expenses 80023845.71 85773267.04 -6.70%

Financial expenses 91153090.47 87302056.62 4.41%

Income tax expenses 369040383.81 290224512.53 27.16%

The main R&D projects in the current

R & D Investment 81651.82 1368887.22 -94.04%

period are still in the early stages.Mainly due to the increase in toll revenue

Cash flow generated by and the impact of government subsidies

2013917191.701443551266.3039.51%

business operation net received by the Beijing-Zhuhai

Expressway.Mainly due to the increase in cash outflow

Net cash flow generated by due to the renovation and expansion of the

-634590288.73-274972125.19-130.78%

investment Guangzhu section of the Beijing-Zhuhai

Expressway.Net cash flow generated by Mainly due to the repayment of mature

-389241866.55-80767682.59-381.93%

financing debts

Net increasing of cash and

990085036.421087811458.52-8.98%

cash equivalents

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

□ Applicable √Not applicable

None.Component of Business Income

In RMB

This report period Same period last year

Increase /decrease

Amount Proportion Amount Proportion

Total operating

2340436775.08100%2057420809.68100%13.76%

revenue

On Industry

Highway

2310707369.5798.73%2019631631.4198.16%14.41%

transportations

Other 29729405.51 1.27% 37789178.27 1.84% -21.33%

10Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

On Product

Highway

2310707369.5798.73%2019631631.4198.16%14.41%

transportations

Other 29729405.51 1.27% 37789178.27 1.84% -21.33%

On Area

Fokai Expressway 734319820.33 31.38% 636965610.55 30.96% 15.28%

Jingzhu

Expressway 558390597.95 23.86% 437471193.16 21.26% 27.64%

Guangzhu Section

Guanghui

1017838852.7643.49%880413820.7042.79%15.61%

Expressway

Other 29729405.51 1.27% 37789178.27 1.84% -21.33%

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/decrease Increase/decrease Increase/decrease

Gross of revenue in the of business cost of gross profit rate

Turnover Operation cost profit same period of over the same over the same

rate(%) the previous period of period of the

year(%) previous year (%) previous year (%)

On Industry

Highway

2310707369.57726266759.5068.57%14.41%7.03%2.17%

transportations

On Industry

Highway

2310707369.57726266759.5068.57%14.41%7.03%2.17%

transportations

On Area

Fokai

734319820.33241299076.0867.14%15.28%-2.79%6.11%

Expressway

Jingzhu

Expressway

558390597.95161090051.4971.15%27.64%11.77%4.09%

Guangzhu

Section

Guanghui

1017838852.76324067327.5368.16%15.61%20.26%-1.23%

Expressway

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

IV. Non-core business analysis

√ Applicable □Not applicable

In RMB

Amount Ratio in total profit Note Whether be sustainable

11Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

It is due to the operation

Investment Income 181402127.67 11.60% accumulation of participant Yes

companies

Non-operating income Mainly insurance claims and2148292.85 0.14% No

road property claims

Non-operating expenses Mainly road property repair240222.59 0.02% No

expenses

Mainly due to that Guangfo

Company has fully made an

impairment provision for the

Credit impairment loss -45626953.18 -2.92% No

substitute payment of

management and maintenance

expenses.V. Condition of Asset and Liabilities

1.Condition of Asset Causing Significant Change

In RMB

End of Reporting period End of same period of last year

Reason for

As a As a Change in

significant

Amount percentage of Amount percentage of percentage(%)

change

total assets(%) total assets(%)

Monetary fund 5284849991.90 24.61% 4290581490.78 21.17% 3.44%

Accounts

108862469.850.51%108368797.560.53%-0.02%

receivable

Investment real

2557585.690.01%2668144.930.01%0.00%

estate

Long-term

equity 3068430688.22 14.29% 2923368667.84 14.42% -0.13%

investment

Fixed assets 9558708878.11 44.51% 10098252638.07 49.83% -5.32%

Construction in

1287072029.025.99%753565502.123.72%2.27%

process

Use right assets 30342505.71 0.14% 4077555.43 0.02% 0.12%

Shore-term

0.00%430387597.202.12%-2.12%

loans

Long-term

5868719950.0027.33%5566595350.0027.74%-0.14%

borrowing

Lease liabilities 18856223.73 0.09% 150984.47 0.00% 0.09%

2.Main assets overseas

□ Applicable √Not applicable

3.Asset and Liabilities Measured by Fair Value

√ Applicable □Not applicable

12Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

In RMB

Gain/Loss on fair Cumulative fair value Impairment Sold amount in

Purchased amount in Other

Items Opening amount value change in the change recorded into provisions in the the reporting Closing amount

the reporting period change

reporting period equity reporting period period

Financial assets

1. Trading financial

assets (excluding

101400000.0080000000.00181400000.00

derivative financial

assets

4.Other equity

1557303730.98236734309.371552643487.90

instrument investment

Total of the above 1658703730.98 0.00 236734309.37 0.00 80000000.00 0.00 0.00 1734043487.90

Financial liabilities 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

13Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

4. 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.VI. Investment situation

1. General

√ Applicable □ Not applicable

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

592619036.60250000000.00137.68%

2.Condition of Acquiring Significant Share Right Investment during the Report Period

□Applicable□Not applicable

14Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

□Applicable □Not applicable

In RMB

Reasons

Accrued for not

Accrued Actual Realized Reaching

Industry Investment

Fixed Investment Income the

Project Investment involved in amount in this Capital Project Anticipated Disclosure Disclosure

investments Amount up to the up to the Planned

name method investment reporting Source schedule income date Index

or not End of Reporting End of Schedule

projects period

Period Reporting and

Period Anticipated

Income

Nansha-

Zhuhai Announcement

Section of of Resolution

Guangzhou- Self of the Second

October

Macao Self-built Yes Expressway 467619036.60 1021162978.77 and 7.43% No (Provisional)

222022

Expressway Loan Meeting the

Was rebuilt Tenth Board of

and Directors

Expanded

Total -- -- -- 467619036.60 1021162978.77 -- -- 0.00 0.00 -- -- --

4.Investment of Financial Asset

（1）Securities investment

√ Applicable □ Not applicable

In RMB

Mode of Book value Change Cumulative Purchas Sale Book value

Stock Initial Gain/loss of Source

Security Securit accounting balance at the s in fair fair value e amoun balance at the Accountin

Abbreviatio investment the reporting s of

category y code measureme beginning of value changes in amount t in the end of the g items

n: cost period funds

nt the reporting of the equity in the this reporting

15Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

period this this period period

period period

Domesti Other

c and Everbright equity

601818 517560876.8 722232678.0 204671801.2 44698439.3 722232678.0FVM 0.00 0.00 0.00 instrument Self

foreign Bank 0 8 8 6 8 investment

stocks s

517560876.8722232678.0204671801.244698439.3722232678.0

Total -- 0.00 0.00 0.00 -- --

08868

Disclosure Date of Announcement

on Securities Investment Approved July 222009

by the Board of Directors

Disclosure Date of Announcement

on Securities Investment Approved

August 72009

by the Shareholders Meeting(If

any)

（2）Investment in Derivatives

□ Applicable √ Not applicable

The Company had no investment in derivatives in the reporting period.

5.Application of the raised capital

□ Applicable √ Not applicable

The Company had no application of the raised capital in the reporting period.VII. 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

16Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

VIII. 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 Leading products and

Company Name Registered capital Total assets Net assets Operating Income Operating profit Net Profit

type services

Jingzhu

Expressway The operation and

Subsidiary management of 2.856 billion yuan 3846825629.09 1295606246.92 574690822.31 374160147.14 280406973.97

Guangzhu Guangzhu Expressway

Section Co. Ltd.Investment in and

construction of Guanghui

Expressway Co. Ltd.and supporting facilities

the toll collection and

maintenance

Guangdong management of

Guanghui Sharing Guanghui Expressway

2.352 billion yuan 4623129743.35 4265827694.33 1024822529.29 687494026.11 507331189.13

Expressway Co. company The Guanghui

Ltd. Expressway's supporting

gas station 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

17Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The operating profit of Beijing Zhuhai Expressway Guangzhu Section Co. Ltd. increased by 44.04% year-on-year from January to June 2023 mainly due to the

gradual improvement of the economy and a significant year-on-year increase in toll revenue. The reason for the year-on-year change in net profit is the same as

before.IX．Structured vehicle controlled by the Company

□ Applicable √ Not applicable

X. Risks facing the Company and countermeasures

The company’s profits mainly come from the expressway tolls revenue and the toll charging standards shall be examined by the traffic authority of the

provincial autonomous region and the direct-controlled municipality people’s governments together with the same-level pricing authority and then submitted to the

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

commodity price and the company cost in the future are still subject to relevant national policies and the approval of the governmental department. And the company

can’t adjust the charging standards promptly based on its own operation cost or the market supply-demand changes. In conclusion the charging policies change and

the charging standards adjustment have the influence on the expressway business of the company to some extent.

18Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

IV. Corporate Governance

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

1.Annual General Meeting

Investor

Convened Disclosure

Meeting Type participation Index to disclosed information

date date

ratio

1.The meeting examined and adopted the Proposal

Concerning Final Accounting Report for 2022.2.The meeting examined and adopted the Proposal

Concerning Preplan for Profit Distribution for

2022.3. The meeting examined and adopted the

Proposal Concerning Overall budget report of the

Company for 2023. 4.The meeting examined and

adopted the Work Report of the Board of

Directors for 2022.5.The meeting examined and

2022 Annual adopted the Work Report of the supervisory

Shareholders’ Shareholders’ June June Committee for 2022. 6.The meeting examined

66.79%

general General 282023 292023 and adopted Annual Report for 2022 and its

meeting Meeting summary. 7. The meeting examined and adopted

the Proposal for Hiring the 2023 Annual Financial

Report Audit Agency.8. The meeting examined

and adopted the Proposal for Hiring the 2023

Internal Control Audit Institution. 9. The meeting

examined and adopted the Proposal on the

Investment Plan for 2023.10. The meeting

examined and adopted the Proposal on Amending

Part of the Articles of Association of the

Company.

2. Preferred shareholders with the restoration of voting rights made a request for the Special Meeting of

Shareholders

□ Applicable √ Not applicable

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

√ Applicable □Not applicable

Name Positions Types Date Reason

Deputy General

Zhu Qijun Appointment April 272023 Appointment

Manager

III. Pre-plan for profit allocation and turning capital reserve into share capital for the reporting period

□ Applicable √ Not applicable

The Company planned not to distribute cash dividend and bonus share and not to convert capital reserves into

share capital in half year.IV. Implementation of any equity incentive plan employee stock ownership plan or other incentive

measures for employees

□ Applicable √ Not applicable

19Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

None.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 periodNone。

Refer to other environmental information disclosed by key pollutant discharge units

None

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 the first half of 2023 the Company adhered to the essence of the enterprise deepened corporate

governance and actively fulfilled the responsibility of state-owned enterprises while promoting the high-quality

development of enterprises. In the first half of the year the Company actively responded to government policies

provided preferential exemptions and reductions in accordance with laws and regulations and reduced the

transportation costs of enterprises and the mass travel costs ; The Company continues to implement the toll

exemption policy for passenger cars with less than seven seats on highways in major holidays and implement

the intermittent free release and preferential policies for green channels thus to effectively achieve "recognition

in place personnel in place responsibility in place and measures in place" and successfully complete various

work to ensure safety smooth flow and excellent service.

20Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

VI. Important Events

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 Fulfillment

Commitment Type Contents commitment commitment

maker

The predicted net profit of

Guangdong Guanghui

Expressway Co. Ltd. after

deducting non-recurring gains and

losses in 2020 2021 and 2022

(hereinafter referred to as

"predicted net profit") is RMB

652477500 RMB 1112587300

Guangdong and RMB 1234200900

Commitment Provincial respectively. According to the NovemberPerformance Proposed

on share Freeway special audit opinion issued by the 25 2020-2022 change

reform commitmentCo.Ltd. accounting firm if the 2020 commitment

accumulated realized net profit of

Guangdong Guangzhou-Huizhou

Expressway Co. Ltd. at the end of

any fiscal year does not reach the

accumulated predicted net profit

within the compensation period

Guangdong Provincial Freeway

Co.Ltd. will compensate in cash

as agreed.Completed on

Yes

time(Y/N)

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

21Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

IV. Engagement and disengagement of CPAs firm

Whether the semi-annual financial report has been audited

□ Yes √ No

The semi-annual financial report of the Company has not been audited

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. Notes for the related information of “non-standard audit reports” last year by board of directors

□ Applicable √ Not applicable

VII. Bankruptcy and restructuring

□ Applicable √ Not applicable

No such cases in the reporting period.VIII. Litigations and arbitrations

Significant litigations and arbitrations

□ Applicable √ Not applicable

No such cases in the reporting period.Other lawsuits

□ Applicable √ Not applicable

IX. Punishments and rectifications

□ Applicable √ Not applicable

X. Credit conditions of the Company as well as its controlling shareholder and actual controller

□ Applicable √ Not applicable

XI.Material related transactions

1. Related transactions in connection with daily operation

□ Applicable √ Not applicable

No such cases in the reporting period.

22Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

□Applicable √ Not applicable

No such cases in the reporting period.

3. Related-party transitions with joint investments

□Applicable √ Not applicable

No such cases in the reporting period.

4. Credits and liabilities with related parties

□Applicable √ Not applicable

No such cases in the reporting period.

5. Transactions with related finance company especially one that is controlled by the Company

√ Applicable □Not applicable

Deposit business

Related party Relationship Maximum Deposit Beginning The amount incurred Ending

daily deposit interest rate balance Total deposit Total amount balancelimitd（Ten range （Ten amount of withdrawn in （Tenthousand thousand the current the current thousandperiod（Ten period（Tenyuan） yuan） thousand thousand yuan）yuan） yuan）

Guangdong

Controlled

Communicati

by the same

ons Group 0.35%-300000 239396.61 298189.83 254255.77 283330.67

parent 2.85%

Finance Co.company

Ltd

Loan business

Related party Relationship Beginning The amount incurred Ending

Loan limit balance Total balanceLoant Total loan（Ten repayment（Ten amount for （Teninterest rate thousand amount ofthousand the current thousandthis periodrange yuan） period（Tenyuan） （Ten yuan）thousand

thousandyuan）yuan）

Guangdong

Controlled

Communicati

by the same

ons Group 2.95%-400000 62859.33 659.10 43797.13 19721.3

parent 3.40%

Finance Co.company

Ltd

Credit extension or other financial servicesRelated party Relationship Business type Total amount（Ten Actual amount incurredthousand yuan） （Ten thousandyuan）

Guangdong

Controlled by the same

Communications Credit extension 220000 19700

parent company

Group Finance Co.

23Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Ltd

6. Transactions with related finance company controlled by the Company

□ Applicable √ Not applicable

No such cases in the reporting period.

7. Other significant related-party transactions

√ Applicable □Not applicable

1. The Proposal on Concerning the Company Daily Associated Transactions Predicted of 2023 was reviewd and

approved in the 7th meeting of the Tenth board of directors of the CompanyAgree on the predicted daily

associated transactions for the company headquarters wholly-owned and holding subsidiaries of 2023 whose

amount in total is RMB 58.6612 million .

2. The Proposal on Signing the Office Property Lease Contract of the 45th and the 46th Floors of Litong Plaza

was reviewd and approved in the 7th meeting of the Tenth board of directors of the Company It’s agreed that

the Company will continue to lease the entire 43rd floor and 44th floor units of Litong Plaza (self-numbered

floors 45 and 46) as office space for use from Guangdong Litong Development Investment Co. Ltd with a

lease period of 3 years from May 5 2023 to May 4 2026. The monthly rent standard is RMB 908133.47 for the

period from May 5 2023 to May 4 2024 the monthly rent standard is RMB 935400.05 for the period from

May 5 2024 to May 4 2025 and the monthly rent for the period from May 5 2025 to May 4 2026 is RMB

963449.61.

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

Estimates announcement of the Daily

March 212023 www.cninfo.com.cn

Related Party Transaction of 2023

Announcement of related party

March 212023 www.cninfo.com.cn

transaction

XII. 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.

24Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

3. Finance management on commission

□Applicable √ Not applicable

No such cases in the reporting period.

4. Other significant contract

□ Applicable √ Not applicable

No such cases in the reporting period.XIII. Explanation on other significant events

√Applicable □ Not applicable

In 2020 the Company acquired the 21% stake of Guangdong Guanghui Expressway Co. Ltd. held by

Guangdong Provincial Freeway Co. Ltd. in cash. The Company signed the "Profit Compensation Agreement

between Guangdong Provincial Expressway Development Co. Ltd. and Guangdong Provincial Freeway

Co.Ltd." (hereinafter referred to as the "Profit Compensation Agreement") with the Guangdong Provincial

Freeway Co.Ltd.and Guangdong Expressway which made commitment on the future profitability of Guanghui

Company.In view of the fact that during the performance compensation period due to the impact of domestic

macroeconomic fluctuations the net profit realized by Guanghui Company after deducting non-recurring profits

and losses during the performance compensation period did not reach the cumulative forecast net profit which

triggered the compensation obligation stipulated in the Profit Compensation Agreement. In order to safeguard

the long-term interests of the Company and its shareholders especially small and medium-sized shareholders

taking into account the relevant arrangements of the two parties under the original agreement and in accordance

with the relevant requirements of the Administrative Measures for the Restructuring of Major Assets of Listed

Companies and the consultation between the parties to the original agreement the "Proposal on Changing the

Performance Commitment of Major Asset Restructuring Project in 2020 and Sinning the Supplementary

Agreement to the Profit Compensation Agreement " was deliberated and adopted in the 10thmeeting (interim)

of the 10th Board of Directors of the Company agreeing to change the performance commitment of major

asset restructuring project in 2020 and sign the Supplementary Agreement to the Profit Compensation

Agreement with the Provincial Expressway. The performance compensation period for this restructuring had

been adjusted to 2020 2021 and 2023. The Provincial Expressway promised that the net profit accumulated by

Guanghui Expressway after deducting non-recurring profits and losses in the three years of 2020 2021 and

2023 shall not be less than 2999265700 yuan.

[The "Proposal on Changing the Performance Commitment of Major Asset Restructuring Project in 2020

and Sinning the Supplementary Agreement to the Profit Compensation Agreement " was deliberated and passed

in the Company's first extraordinary general meeting of shareholders in 2023.】

For details of the matter please refer to the "Announcement on Changing the Performance Commitment of

Major Asset Restructuring Project in 2020" disclosed on Cninfo Information Network

(www.cninfo.com.cn)(Announcement No.: 2023-18) on August 8 2023 and the "Announcement of Resolution

of the First Provisional General Meeting of Shareholders in 2023" disclosed on August 24 2023.

25Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

XIV. Significant event of subsidiary of the Company

□ Applicable √ Not applicable

26Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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 Share Bonu Capitalizatio

Othe Subtota Proportio

n allotmen s n of common Quantity

r l n

t shares reserve fund

1.Shares with

conditional -438833395 20.99% -5850 438827545 20.99%

5850

subscription

1.State-

41010573819.61%41010573819.61%

owned shares

2.State-

owned legal 21712738 1.04% 21712738 1.04%

person shares

3.Other

domestic -7014919 0.34% -5850 7009069 0.34%

5850

shares

Including ：

Domestic -

65439360.31%-421465397220.31%

Legal person 4214

shares

Domestic

natural -470983 0.02% -1636 469347 0.02%

1636

person shares

4.Foreign

00.00%00.00%

shares

Including：

Foreign legal 0 0.00% 0 0.00%

person shares

Foreign

natural 0 0.00% 0 0.00%

person shares

II.Shares

with 165197273 165197858

79.01%5850585079.01%

unconditiona 1 1

l subscription

1.Common

shares in 130332405 13033299062.34% 5850 5850 62.34%

66

RMB

2.Foreign

34864867516.68%34864867516.68%

shares in

27Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

domestic

market

3.Foreign

shares in

00.00%00.00%

foreign

market

4.Other 0 0.00% 0 0.00%

III. Total of 209080612 209080612

100.00%00100.00%

capital shares 6 6

Reasons for share changed

√ Applicable □Not applicable

1. During the reporting period 4214 shares of "domestic legal person shareholding" were converted into

"domestic natural person shareholding".

2. During the reporting period the 1950" restricted shares held by domestic natural persons" held by the

resigned director Mr. Du Jun were converted into " unrestricted shares".Approval of Change of Shares

□Applicable √Not applicable

Ownership transfer of share changes

□Applicable √Not applicable

Implementation progress of shares buy-back

□Applicable √Not applicable

Implementation progress of reducing holdings of shares buy-back by centralized bidding

□ Applicable √ Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable

to common shareholders of Company in latest year and period

□Applicable √Not applicable

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

regulators

□Applicable √Not applicable

2. Change of shares with limited sales condition

√ Applicable □Not applicable

In shares

Number of

Initial Number of Restricted Reason for Date of

Shareholder Increased

Restricted Unrestricted Shares in the Restricted Restriction

Name Restricted Shares

Shares Shares This Term End of the Term Shares Removal

This Term

Outgoing

Du Jun 5850 5850 0 executives June 2023

locked up shares

Total 5850 5850 0 0 -- --

II. Securities issue and listing

□ Applicable √Not applicable

28Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

III. Shareholders and actual controlling shareholder

1. Number of shareholders and shareholding

In Shares

Total number of preferred

Total number of common shareholders that had

shareholders at the end of the 49752 restored the voting right at 0

reporting period the end of the reporting

period (if any) (note 8)

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 shares un-restricted n

shareholder

held period -end period held shares held State

Amo

（%） of

unt

share

Guangdong

Communicatio State-owned

24.56%513485480410105738103379742

n Group legal person

Co.Ltd

Guangdong

Highway State-owned

22.30%466325020466325020

Construction legal person

Co. Ltd

Shangdong

Expressway

State-owned

Investment 10.10% 211069245 211069245

legal person

Development

Co. Ltd.Tibet Hetai

Enterprise State-owned

4.84%101214574101214574

Management legal person

Co. Ltd.Guangdong

Provincial State-owned

2.53%5293749119582228.0033355263

Freeway legal person

Co.Ltd.Overseas

HKSCC 0.92% 19291612 19291612

legal person

Domestic

natural

Feng Wuchu 0.80% 16678821 -6695584 16678821

person

shares

Xinyue Co. Overseas

0.63%1320108613201086

Ltd. legal person

29Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Orient State-owned

0.52%107759131940010775913

securities legal person

Happy life

insurance Co. Other 0.50% 10438130 -12547100 10438130

Ltd.-Dividend

Strategic investor or general legal person becoming top-10

None

ordinary shareholder due to 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. Ltd. It

Related or acting-in-concert parties among shareholders above is unknown whether there is relationship between other

shareholders and whether they are persons taking concerted action

specified in the Regulations on Disclosure of Information about

Change in Shareholding of Shareholders of Listed Companies.Above shareholders entrusting or entrusted with voting rights

None

or waiving voting rights

Top 10 shareholders including the special account for

None

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

Share type Quantity

the reporting period

Guangdong Highway Construction

466325020.00 RMB Common shares 466325020.00

Co. Ltd

Shangdong Expressway Investment

211069245.00 RMB Common shares 211069245.00

Development Co. Ltd.Guangdong Communication Group

103379742.00 RMB Common shares 103379742.00

Co.Ltd

Tibet Hetai Enterprise Management

101214574.00 RMB Common shares 101214574.00

Co. Ltd.Guangdong Provincial Freeway

33355263.00 RMB Common shares 33355263.00

Co.Ltd.HKSCC 19291612.00 RMB Common shares 19291612.00

RMB Common shares 13931458

Feng Wuchu 16678821 Foreign shares placed in

2747363

domestic

Xinyue Co. Ltd. Foreign shares placed in13201086 13201086

domestic

Orient securities 10775913.00 RMB Common shares 10775913.00

Happy life insurance Co. Ltd.-

10438130.00 RMB Common shares 10438130.00

Dividend

Guangdong Communication Group Co. Ltd. is the parent

Explanation on associated relationship or consistent action

company of Guangdong Highway Construction Co. Ltd. ，among the top 10 shareholders of non-restricted negotiable

Guangdong Provincial Freeway Co.Ltd. and Xinyue Co. Ltd. It

shares and that between the top 10 shareholders of non-

is unknown whether there is relationship between other

restricted negotiable shares and top 10 shareholders

shareholders and whether they are persons taking concerted action

30Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

specified in the Regulations on Disclosure of Information about

Change in Shareholding of Shareholders of Listed Companies.Top 10 ordinary shareholders conducting securities margin

None

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.IV. Changes in shareholdings of directors supervisors and executive officers

□ Applicable √Not applicable

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

information please refer to the 2022 Annual Report

V. Change of the controlling shareholder or the actual controller

Change of the controlling shareholder in the reporting period

□ Applicable √ Not Applicable

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

□ Applicable √ Not applicable

There was no any change of the actual controller of the Company in the reporting period.

31Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

VIII. Situation of the Preferred Shares

□Applicable √Not applicable

The Company had no preferred shares in the reporting period

32Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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.

33Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

III. Debt financing instruments of non-financial enterprises

√Applicable □ Not applicable

1.Basic information

In RMB 10000

Intere

Servicing

Bond name Bond short name Bond code Issue day Value date Due day Bond balance st Trading

way

rate

Due payments

once a

year The pri

Guangdong Provincial Expre ncipal and the

ssway Development Co. Ltd. 19 Guangdong February March 679703854.6 last instalment Interban

101900252 March 12019 4%

2019 first phase medium- Expressway MTN001 272019 12024 6 interest are pa k market

term notes id in one lump

sum on the re

demption date.Due payments

once a

year The pri

Guangdong Provincial Expre ncipal and the

ssway Development Co. Ltd. 20 Guangdong March 749147101.9 last instalment Interban

102000367 March 132020 March 172020 3%

2020 first phase medium- Expressway MTN001 172025 5 interest are pa k market

term notes id in one lump

sum on the re

demption date.Applicable trading mechanism Circulation and transfer in the national inter-

34Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

bank bond market its listing and circulation will be carried out in accordance with the relevant regulations

promulgated by the National Interbank Funding Center.Overdue and unpaid bonds

□ Applicable √ Not applicable

2. Trigger and implementation of option clauses and investor protection clauses of the issuer or investor

□ Applicable √ Not applicable

3.Adjustment of credit rating results during the reporting period

□ Applicable √ Not applicable

4 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

35Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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. 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 1.98 2.90 -31.72%

Debt ratio 46.25% 43.90% 2.35%

Quick ratio 1.98 2.89 -31.49%

At the same time rate of

Amount of this period Amount of last period

change

Net profit after deducting

91368.3674304.0222.97%

non-recurring profit and loss

EBITDA total debt ratio 28.03% 29.29% -1.26%

Time interest earned ratio 12.54 11.94 5.03%

Cash interest guarantee times 14.86 12.57 18.19%

EBITDATime interest earned

16.7415.964.89%

ratio

Repayment of debt (%) 100.00% 100.00%

Payment of interest (%) 100.00% 100.00%

36Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

X. Financial Report

I. Audit report

Has this semi-annual report been audited

□Yes √No

The semi-annual report was not audited.II. Financial statements

Currency unit for the statements in the notes to these financial statements: RMB

1. Consolidated balance sheet

Prepared by: Guangdong Provincial Expressway Development Co. Ltd.June 302023

In RMB

Items June 302023 January 12023

Current asset：

Monetary fund 5284849991.90 4290581490.78

Settlement provision

Outgoing call loan

Transactional financial assets

Derivative financial assets

Notes receivable

Account receivable 108862469.85 108368797.56

Financing of receivables

Prepayments 4797746.85 7785192.95

Insurance receivable

Provisions of Reinsurance contracts

receivable

Other account receivable

Including：Interest receivable 56736432.76 34456244.64

Dividend receivable

Other receivable 45903912.26 1205472.90

Repurchasing of financial assets

Inventories

Contract assets

Assets held for sales

Non-current asset due within 1 year

Other current asset 34733.27 2042395.28

Total of current assets 5455281374.63 4443234121.21

Non-current assets：

Loans and payment on other’s behalf disbursed

37Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Items June 302023 January 12023

Creditor's right investment

Other creditor's right investment

Long-term receivable

Long term share equity investment 3068430688.22 2923305042.30

Other equity instruments investment 1552643487.90 1557303730.98

Other non-current financial assets 181400000.00 101400000.00

Property investment 2557585.69 2668144.93

Fixed assets 9558708878.11 10098252638.07

Construction in progress 1287072029.02 753565502.12

Production physical assets

Oil & gas assets

Use right assets 30342505.71 4077555.43

Intangible assets 234050221.33 246772471.44

Development expenses

Goodwill

Long-germ expenses to be amortized

Deferred income tax asset 46836719.58 129044978.46

Other non-current asset 59768581.58 8374778.84

Total of non-current assets 16021810697.14 15824764842.57

Total of assets 21477092071.77 20267998963.78

Current liabilities

Short-term loans 430387597.20

Loan from Central Bank

Borrowing funds

Transactional financial liabilities

Derivative financial liabilities

Notes payable

Account payable 167332578.88 197788782.77

Advance receipts 3252887.09 2718756.97

Contract liabilities

Selling of repurchased financial assets

Deposit taking and interbank deposit

Entrusted trading of securities

Entrusted selling of securities

Employees’ wage payable 21219186.58 20660328.60

Tax payable 163676885.03 72307773.41

Other account payable 1044725398.43 191167560.23

Including：Interest payable

Dividend payable 920558170.17 59994517.46

Fees and commissions payable

Reinsurance fee payable

Liabilities held for sales

Non-current liability due within 1 year 851123675.32 117011466.96

Other current liability 500564930.33 500723556.23

38Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Items June 302023 January 12023

Total of current liability 2751895541.66 1532765822.37

Non-current liabilities：

Reserve fund for insurance contracts

Long-term loan 5868719950.00 5566595350.00

Bond payable 749147101.95 1428381232.94

Including：preferred stock

Sustainable debt

Lease liability 18856223.73 150984.47

Long-term payable 2022210.11 2517493.12

Long-term remuneration payable to staff

Expected liabilities

Deferred income 237249225.25 61082981.63

Deferred income tax liability 305873349.54 307825916.58

Other non-current liabilities

Total non-current liabilities 7181868060.58 7366553958.74

Total of liability 9933763602.24 8899319781.11

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stock

Sustainable debt

Capital reserves 743059586.56 743133557.03

Less：Shares in stock

Other comprehensive income 179248772.69 170633656.67

Special reserve

Surplus reserves 1373056469.02 1373056469.02

Common risk provision

Retained profit 4688808520.14 4698029354.08

Total of owner’s equity belong to the parent

9074979474.419075659162.80

company

Minority shareholders’ equity 2468348995.12 2293020019.87

Total of owners’ equity 11543328469.53 11368679182.67

Total of liabilities and owners’ equity 21477092071.77 20267998963.78

Legal Representative: Miao Deshan

General Manager: Wang Chunhua

Person in charge of accounting：Lu Ming

Accounting Dept Leader: Zhou Fang

2.Parent Company Balance Sheet

In RMB

Items June 302023 January 12023

Current asset：

Monetary fund 2707888802.08 1813035761.84

Transactional financial assets

39Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Items June 302023 January 12023

Derivative financial assets

Notes receivable

Account receivable 21127358.73 23817016.30

Financing of receivables

Prepayments 2809613.75 5515813.54

Other account receivable 1286164460.20 1542022671.18

Including：Interest receivable

Dividend receivable 45903912.26 36905472.90

Inventories

Contract assets

Assets held for sales

Non-current asset due within 1 year

Other current asset 111143.99

Total of current assets 4017990234.76 3384502406.85

Non-current assets：

Creditor's right investment

Other creditor's right investment

Long-term receivable

Long term share equity investment 6560494196.19 6096415643.96

Other equity instruments investment 1552643487.90 1557303730.98

Other non-current financial assets

Property investment 2305447.44 2416006.68

Fixed assets 5107546847.79 5299569148.92

Construction in progress 208907444.68 152388974.47

Production physical assets

Oil & gas assets

Use right assets 29423746.22 3069576.00

Intangible assets 128646097.36 132991895.23

Development expenses

Goodwill

Long-germ expenses to be amortized

Deferred income tax asset 41695083.71 123579950.33

Other non-current asset

Total of non-current assets 13631662351.29 13367734926.57

Total of assets 17649652586.05 16752237333.42

Current liabilities

Short-term loans

Transactional financial liabilities

Derivative financial liabilities

Notes payable

Account payable 84341061.59 94446623.15

Advance receipts 752954.28 250984.75

Contract Liabilities

Employees’ wage payable 7395204.74 8103399.09

Tax payable 5618530.69 4643917.73

40Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Items June 302023 January 12023

Other account payable 1332431588.92 362996135.95

Including：Interest payable

Dividend payable 920558170.17 25694517.46

Liabilities held for sales

Non-current liability due within 1 year 796835939.08 116904509.53

Other current liability 38917.98 33596.70

Total of current liability 2227414197.28 587379166.90

Non-current liabilities：

Long-term loan 5508083200.00 5552070350.00

Bond payable 749147101.95 1428381232.94

Including：preferred stock

Sustainable debt

Lease liability 18705239.26

Long-term payable 2022210.11 2517493.12

Long-term remuneration payable to staff

Expected liabilities

Deferred income 5197208.42 6838432.16

Deferred income tax liability 67459482.66 61985198.42

Other non-current liabilities

Total non-current liabilities 6350614442.40 7051792706.64

Total of liability 8578028639.68 7639171873.54

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stock

Sustainable debt

Capital reserves 934926723.73 934908293.69

Less：Shares in stock

Other comprehensive income 179248772.69 170633656.67

Special reserve

Surplus reserves 1193084201.46 1193084201.46

Retained profit 4673558122.49 4723633182.06

Total of owners’ equity 9071623946.37 9113065459.88

Total of liabilities and owners’ equity 17649652586.05 16752237333.42

3.Consolidated Income statement

In RMB

Items The first half year of 2023 The first half year of 2022

I. Income from the key business 2340436775.08 2057420809.68

Incl：Business income 2340436775.08 2057420809.68

Interest income

Insurance fee earned

Fee and commission received

41Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Items The first half year of 2023 The first half year of 2022

II. Total business cost 921351272.48 879520254.68

Incl：Business cost 740670310.49 696143722.50

Interest expense

Fee and commission paid

Insurance discharge payment

Net claim amount paid

Net amount of withdrawal of insurance contract reserve

Insurance policy dividend paid

Reinsurance expenses

Business tax and surcharge 9422373.99 8932321.30

Sales expense

Administrative expense 80023845.71 85773267.04

R & D costs 81651.82 1368887.22

Financial expenses 91153090.47 87302056.62

Including：Interest expense 109161060.69 123517238.10

Interest income 18067700.31 36907508.27

Add: Other income 6449973.78 8178352.38

Investment gain（“-”for loss） 181402127.67 162320728.99

Incl: investment gains from affiliates 109631134.53 101561222.92

Financial assets measured at amortized cost cease to be recognized

as income

Gains from currency exchange

Net exposure hedging income

Changing income of fair value

Credit impairment loss -45626953.18

Impairment loss of assets

Assets disposal income 463363.89

III. Operational profit（“-”for loss） 1561310650.87 1348863000.26

Add ：Non-operational income 2148292.85 5821631.65

Less: Non-operating expense 240222.59 2955659.39

IV. Total profit(“-”for loss) 1563218721.13 1351728972.52

Less：Income tax expenses 369040383.81 290224512.53

V. Net profit 1194178337.32 1061504459.99

(I) Classification by business continuity

1.Net continuing operating profit 1194178337.32 1061504459.99

2.Termination of operating net profit

(II) Classification by ownership

1.Net profit attributable to the owners of parent company 885644187.99 773736908.29

2.Minority shareholders’ equity 308534149.33 287767551.70

VI. Net after-tax of other comprehensive income 8615116.02 -34872070.60

Net of profit of other comprehensive income attributable to owners of 8615116.02 -34872070.60

the parent company.

42Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Items The first half year of 2023 The first half year of 2022

（I）Other comprehensive income items that will not be reclassified

-3495182.31-34035245.89

into gains/losses in the subsequent accounting period

1.Re-

measurement of defined benefit plans of changes in net debt or net as

sets

2.Other comprehensive income under the equity method investee can

not be reclassified into profit or loss.

3. Changes in the fair value of investments in other equity

-3495182.31-34035245.89

instruments

4. Changes in the fair value of the company’s credit risks

5.Other（II）

Other comprehensive income that will be reclassified into profit or lo 12110298.33 -836824.71

ss.

1.Other comprehensive income under the equity method investee can 12110298.33 -836824.71

be reclassified into profit or loss.

2. Changes in the fair value of investments in other debt obligations

3. Other comprehensive income arising from the reclassification of

financial assets

4.Allowance for credit impairments in investments in other debt

obligations

5. Reserve for cash flow hedges

6.Translation differences in currency financial statements

7.Other

Net of profit of other comprehensive income attributable to Minority

shareholders’ equity

VII. Total comprehensive income 1202793453.34 1026632389.39

Total comprehensive income attributable to the owner of the parent

894259304.01738864837.69

company

Total comprehensive income attributable minority shareholders 308534149.33 287767551.70

VIII. Earnings per share

（I）Basic earnings per share 0.42 0.37

(II)Diluted earnings per share 0.42 0.37

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

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

General Manager：Wang Chunhua

Person in charge of accounting：Lu Ming

Accounting Dept Leader: Zhou Fang

4. Income statement of the Parent Company

In RMB

43Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Items The first half year of 2023 The first half year of 2022

I. Income from the key business 740672433.01 642655502.74

Incl：Business cost 244287384.51 251072086.53

Business tax and surcharge 3726508.48 3509918.91

Sales expense

Administrative expense 49125187.49 49546552.29

R & D expense

Financial expenses 110048379.46 95640651.97

Including：Interest expenses 121332718.54 115831785.91

Interest income 11309040.26 20217007.24

Add：Other income 2607245.65 2295878.36

Investment gain（“-”for loss） 596720630.99 791681986.64

Including: investment gains from affiliates 108689822.92 98360414.38

Financial assets measured at amortized cost cease to be

recognized as income

Net exposure hedging income

Changing income of fair value

Credit impairment loss

Impairment loss of assets

Assets disposal income 463363.89

II. Operational profit（“-”for loss） 932812849.71 1037327521.93

Add ：Non-operational income 517077.90 562977.76

Less：Non -operational expenses 15753.62

III. Total profit(“-”for loss) 933314173.99 1037890499.69

Less：Income tax expenses 88524211.63 54001197.13

IV. Net profit 844789962.36 983889302.56

1.Net continuing operating profit 844789962.36 983889302.56

2.Termination of operating net profit

V. Net after-tax of other comprehensive income 8615116.02 -34872070.60

（I）Other comprehensive income items that will not be

reclassified into gains/losses in the subsequent accounting -3495182.31 -34035245.89

period

1.Re-

measurement of defined benefit plans of changes in net debt or

net assets

2.Other comprehensive income under the equity method invest

ee can not be reclassified into profit or loss.

3. Changes in the fair value of investments in other equity

-3495182.31-34035245.89

instruments

4. Changes in the fair value of the company’s credit risks

5.Other

(II)Other comprehensive income that will be reclassified into pr 12110298.33 -836824.71

ofit or loss

44Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Items The first half year of 2023 The first half year of 2022

1.Other comprehensive income under the equity method invest 12110298.33 -836824.71

ee can be reclassified into profit or loss.

2. Changes in the fair value of investments in other debt

obligations

3. Other comprehensive income arising from the

reclassification of financial assets

4.Allowance for credit impairments in investments in other

debt obligations

5. Reserve for cash flow hedges

6.Translation differences in currency financial statements

7.Other

VI. Total comprehensive income 853405078.38 949017231.96

VII. Earnings per share

（I）Basic earnings per share

(II)Diluted earnings per share

45Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

5. Consolidated Cash flow statement

In RMB

Items The first half year of 2023 The first half year of 2022

I.Cash flows from operating activities

Cash received from sales of goods or rending of services 2387824431.30 2100682366.85

Net increase of customer deposits and capital kept for brother

company

Net increase of loans from central bank

Net increase of inter-bank loans from other financial bodies

Cash received against original insurance contract

Net cash received from reinsurance business

Net increase of client deposit and investment

Cash received from interest commission charge and commission

Net increase of inter-bank fund received

Net increase of repurchasing business

Net cash received by agent in securities trading

Tax returned

Other cash received from business operation 239874283.43 67435536.39

Sub-total of cash inflow 2627698714.73 2168117903.24

Cash paid for purchasing of merchandise and services 93721829.45 131225559.09

Net increase of client trade and advance

Net increase of savings in central bank and brother company

Cash paid for original contract claim

Net increase in financial assets held for trading purposes

Net increase for Outgoing call loan

Cash paid for interest processing fee and commission

Cash paid to staffs or paid for staffs 208391670.68 201663653.64

Taxes paid 272784405.49 344543903.69

Other cash paid for business activities 38883617.41 47133520.52

Sub-total of cash outflow from business activities 613781523.03 724566636.94

Net cash generated from /used in operating activities 2013917191.70 1443551266.30

II. Cash flow generated by investing

Cash received from investment retrieving

Cash received as investment gains 48694370.25 114163108.50

Net cash retrieved from disposal of fixed assets intangible assets

13110.00522436.84

and other long-term assets

Net cash received from disposal of subsidiaries or other operational

28514496.27

units

Other investment-related cash received

Sub-total of cash inflow due to investment activities 48707480.25 143200041.61

Cash paid for construction of fixed assets intangible assets and

582217768.98168081166.80

other long-term assets

Cash paid as investment 101080000.00 250091000.00

Net increase of loan against pledge

46Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Items The first half year of 2023 The first half year of 2022

Net cash received from subsidiaries and other operational units

Other cash paid for investment activities

Sub-total of cash outflow due to investment activities 683297768.98 418172166.80

Net cash flow generated by investment -634590288.73 -274972125.19

III.Cash flow generated by financing

Cash received as investment 88470000.47

Including: Cash received as investment from minor shareholders 88470000.47

Cash received as loans 414525000.00 320000000.00

Other financing –related cash received 1460847.67 38470400.00

Sub-total of cash inflow from financing activities 504455848.14 358470400.00

Cash to repay debts 469864650.00 65836100.00

Cash paid as dividend profit or interests 415505541.67 367159468.70

Including: Dividend and profit paid by subsidiaries to minor

255975174.55218751982.19

shareholders

Other cash paid for financing activities 8327523.02 6242513.89

Sub-total of cash outflow due to financing activities 893697714.69 439238082.59

Net cash flow generated by financing -389241866.55 -80767682.59

IV. Influence of exchange rate alternation on cash and cash

equivalents

V.Net increase of cash and cash equivalents 990085036.42 1087811458.52

Add: balance of cash and cash equivalents at the beginning of term 4284688231.33 2955183190.55

VI ..Balance of cash and cash equivalents at the end of term 5274773267.75 4042994649.07

47Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

6. Cash Flow Statement of the Parent Company

In RMB

Items The first half year of 2023 The first half year of 2022

I.Cash flows from operating activities

Cash received from sales of goods or rending of services 763931695.41 661912004.69

Tax returned

Other cash received from business operation 142656776.31 24521728.95

Sub-total of cash inflow 906588471.72 686433733.64

Cash paid for purchasing of merchandise and services 24172182.68 13570674.87

Cash paid to staffs or paid for staffs 62195705.48 60633887.05

Taxes paid 24138943.36 23470841.12

Other cash paid for business activities 55091483.76 236627095.73

Sub-total of cash outflow from business activities 165598315.28 334302498.77

Net cash generated from /used in operating activities 740990156.44 352131234.87

II. Cash flow generated by investing

Cash received from investment retrieving 60623900.00

Cash received as investment gains 499852096.70 693296160.51

Net cash retrieved from disposal of fixed assets intangible assets

13110.00517888.00

and other long-term assets

Net cash received from disposal of subsidiaries or other operational

units

Other investment-related cash received

Sub-total of cash inflow due to investment activities 499865206.70 754437948.51

Cash paid for construction of fixed assets intangible assets and

68690286.5943488728.78

other long-term assets

Cash paid as investment 98000000.00 246000000.00

Net cash received from subsidiaries and other operational units

Other cash paid for investment activities

Sub-total of cash outflow due to investment activities 166690286.59 289488728.78

Net cash flow generated by investment 333174920.11 464949219.73

III. Cash flow generated by financing

Cash received as investment

Cash received as loans

Other financing –related ash received

Sub-total of cash inflow from financing activities

Cash to repay debts 25339650.00 32001100.00

Cash paid as dividend profit or interests 145644863.29 136048729.34

Other cash paid for financing activities 8327523.02 6214613.89

Sub-total of cash outflow due to financing activities 179312036.31 174264443.23

Net cash flow generated by financing -179312036.31 -174264443.23

IV. Influence of exchange rate alternation on cash and cash

equivalents

V.Net increase of cash and cash equivalents 894853040.24 642816011.37

Add: balance of cash and cash equivalents at the beginning of term 1811814561.84 1859614927.30

48Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

VI ..Balance of cash and cash equivalents at the end of term 2706667602.08 2502430938.67

49Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

7. Consolidated Statement on Change in Owners’ Equity

Amount in this period

In RMB

The first half year of 2023

Owner’s equity Attributable to the Parent Company

Other Equity

instrument

Less: Other Minor

Items Su Specializ Common Total of owners’

Capital Share Comprehe Surplus Retaine shareholders’

Share Capital Prefer sta ed risk Other Subtotal equity

Othe reserves s in nsive reserves d profit equity

red ina reserve provision

r stock Income

stock ble

de

bt

I.Balance at

the end of last 209080612 7431335 1706336 1373056 469802 907565 2293020019.8 11368679182.67

6.0057.0356.67469.029354.089162.807

year

Add: Change

of

accountin

g policy

Correcting of

previous errors

Merger of

entities under

common

control

Other

II.Balance at 209080612 7431335 1706336 1373056 469802 907565 2293020019.8

11368679182.67

the beginning 6.00 57.03 56.67 469.02 9354.08 9162.80 7

50Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2023

Owner’s equity Attributable to the Parent Company

Other Equity

instrument

Less: Other Minor

Items Su Specializ Common Total of owners’

Capital Share Comprehe Surplus Retaine shareholders’

Share Capital Prefer sta ed risk Other Subtotal equity

Othe reserves s in nsive reserves d profit equity

red ina reserve provision

r stock Income

stock ble

de

bt

of current year

III.Changed in - -

the current 8615116-73970.47 922083 679688. 175328975.25 174649286.86.02

year 3.94 39

（1）Total

comprehensive 8615116 885644 894259 308534149.33 1202793453.34.02187.99304.01

income（II）

Investment or

decreasing of 88470000.47 88470000.47

capital by

owners

1．Ordinary S

hares invested

88470000.4788470000.47

by shareholder

s

2．Holders of

other equity in

struments inve

51Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2023

Owner’s equity Attributable to the Parent Company

Other Equity

instrument

Less: Other Minor

Items Su Specializ Common Total of owners’

Capital Share Comprehe Surplus Retaine shareholders’

Share Capital Prefer sta ed risk Other Subtotal equity

Othe reserves s in nsive reserves d profit equity

red ina reserve provision

r stock Income

stock ble

de

bt

sted capital

3．Amount of

shares paid

and accounted

as owners’

equity

4．Other（III）Profit - -

894865894865-221675174.55-1116540196.48

allotment 021.93 021.93

1.Providing of

surplus

reserves

2.Providing

of common

risk provisions

3．Allotment

to the owners - -

894865894865-221675174.55-1116540196.48

(or 021.93 021.93

shareholders)

52Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2023

Owner’s equity Attributable to the Parent Company

Other Equity

instrument

Less: Other Minor

Items Su Specializ Common Total of owners’

Capital Share Comprehe Surplus Retaine shareholders’

Share Capital Prefer sta ed risk Other Subtotal equity

Othe reserves s in nsive reserves d profit equity

red ina reserve provision

r stock Income

stock ble

de

bt

4．Other

(IV) Internal

transferring of

owners’ equity

1. Capitalizing

of capital

reserves (or to

capital shares)

2. Capitalizing

of surplus

reserves (or to

capital shares)

3．Making up

losses by

surplus

reserves.

4.Change

amount of

defined benefit

53Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2023

Owner’s equity Attributable to the Parent Company

Other Equity

instrument

Less: Other Minor

Items Su Specializ Common Total of owners’

Capital Share Comprehe Surplus Retaine shareholders’

Share Capital Prefer sta ed risk Other Subtotal equity

Othe reserves s in nsive reserves d profit equity

red ina reserve provision

r stock Income

stock ble

de

bt

plans that

carry forward

Retained

earnings

5．Other

comprehensive

income carry-

over retained

earnings

6．Other

(V). Special

reserves

1. Provided

this year

2．Used this

term

-（VI）Other -73970.47 73970.4 -73970.47

7

IV. Balance at 209080612 7430595 1792487 1373056 468880 907497 2468348995.1 11543328469.53

54Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2023

Owner’s equity Attributable to the Parent Company

Other Equity

instrument

Less: Other Minor

Items Su Specializ Common Total of owners’

Capital Share Comprehe Surplus Retaine shareholders’

Share Capital Prefer sta ed risk Other Subtotal equity

Othe reserves s in nsive reserves d profit equity

red ina reserve provision

r stock Income

stock ble

de

bt

the end of this 6.00 86.56 72.69 469.02 8520.14 9474.41 2

term

55Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Amount in last year

In RMB

The first half year of 2022

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Le

ss:

Items Pref Su

Sh Comm Minor

Other Special Total of owners’

erre sta Capital ar Surplus on risk Retained shareholders’Share Capital Oth Comprehensive ized Other Subtotal equity

d ina reserves es reserves provisi profit equity

er Income reserve

stoc ble in on

k de sto

bt ck

I.Balance at

the end of last 209080612 713460518. 1225375 4760618 8982437192177466.34 2338551172.96 11320989158.13

6.0049330.56543.78985.17

year

Add: Change

of

accounti 510117.60 510117.60 330.74 510448.34

ng

policy

Correcting of

previous

errors

Merger of

entities under

common

control

56Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2022

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Le

ss:

Sh Comm Minor

Items Pref Su Other Special Total of owners’

erre sta Capital ar Surplus on risk Retained shareholders’Share Capital Oth Comprehensive ized Other Subtotal equity

d ina reserves es reserves provisi profit equity

er Income reserve

stoc ble in on

k de sto

bt ck

Other

II.Balance at

the beginning 209080612 713460518. 1225375 4761128 8982948

192177466.342338551503.7011321499606.47

of current 6.00 49 330.56 661.38 102.77

year

III.Changed - -

in the current 19708141.1 -34872070.60 41802258 43318651 -28984430.49 -462170943.45

7

year 3.53 2.96

（1）Total

comprehensiv 77373690 73886483-34872070.60 287767551.70 1026632389.39

8.297.69

e income（II）

Investment or

decreasing of

capital by

owners

1．Ordinary

Shares invest

ed by shareho

lders

57Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2022

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Le

ss:

Pref Su Sh Comm MinorItems Other Special Total of owners’

erre sta Capital ar Surplus on risk Retained shareholders’Share Capital Oth Comprehensive ized Other Subtotal equity

d ina reserves es reserves provisi profit equity

er Income reserve

stoc ble in on

k de sto

bt ck

2．Holders o

f other equity

instruments i

nvested capit

al

3．Amount

of shares paid

and

accounted as

owners’

equity

4．Other（III）Profit - -

11917591191759-316751982.19-1508511474.01

allotment 491.82 491.82

1.Providing

of surplus

reserves

2.Providing

of common

58Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2022

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Le

ss:

Pref Su Sh Comm MinorItems Other Special Total of owners’

erre sta Capital ar Surplus on risk Retained shareholders’Share Capital Oth Comprehensive ized Other Subtotal equity

d ina reserves es reserves provisi profit equity

er Income reserve

stoc ble in on

k de sto

bt ck

risk

provisions

3．Allotment

to the owners - -

11917591191759-316751982.19-1508511474.01

(or 491.82 491.82

shareholders)

4．Other

(IV) Internal

transferring

of owners’

equity

1.

Capitalizing

of capital

reserves (or

to capital

shares)

2.

Capitalizing

of surplus

59Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2022

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Le

ss:

Pref Su Sh Comm MinorItems Other Special Total of owners’

erre sta Capital ar Surplus on risk Retained shareholders’Share Capital Oth Comprehensive ized Other Subtotal equity

d ina reserves es reserves provisi profit equity

er Income reserve

stoc ble in on

k de sto

bt ck

reserves (or

to capital

shares)

3．Making

up losses by

surplus

reserves.

4.Change

amount of

defined

benefit plans

that carry

forward

Retained

earnings

5．Other

comprehensiv

e income

carry-over

retained

60Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2022

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Le

ss:

Items Pref Su

Sh Comm Minor

Other Special Total of owners’

Capital ar Surplus on risk Retained shareholders’

Share Capital erre sta Oth Comprehensive ized Other Subtotal equity

d ina reserves es reserves provisi profit equity

er Income reserve

stoc ble in on

k de sto

bt ck

earnings

6．Other

(V). Special

reserves

1. Provided

this year

2．Used this

term

VI Other 19708141.1 19708141（ ） 19708141.17

7.17

IV. Balance

at the end of 209080612 733168659. 1225375 4343106 8549761157305395.74 2309567073.21 10859328663.02

6.0066330.56077.85589.81

this term

61Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

Amount in this period

In RMB

The first half year of 2023

Other Equity instrument Less

:

Other Speciali Total of

Items Preferr Capital Shar Surplus Retained OthShare capital Oth Comprehen zed owners’

ed Sustaina

er reserves es in reserves profit er

stock ble debt sive Income reserve equitystoc

k

I.Balance at the end of last year 209080612 93490829 17063365 119308420 472363318 911306545

6.003.696.671.462.069.88

Add: Change of accounting policy

Correcting of previous errors

Other

II.Balance at the beginning of current 209080612 93490829 17063365 119308420 472363318 911306545

year 6.00 3.69 6.67 1.46 2.06 9.88

--

III.Changed in the current year 8615116.018430.04 50075059.5 41441513.5

2

71

I Total comprehensive income 8615116.0 844789962. 853405078.（ ）

23638

(II) Investment or decreasing of capital

by owners

1．Ordinary Shares invested by shareh

olders

2．Holders of other equity instruments

invested capital

3.Amount of shares paid and accounted

as owners’ equity

4．Other

62Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2023

Other Equity instrument Less

:

Other Speciali Total of

Items Preferr Capital Shar Surplus Retained OthShare capital Oth Comprehen zed owners’

ed Sustaina

er reserves es in reserves profit er

stock ble debt sive Income reserve equitystoc

k

--（III）Profit allotment 894865021. 894865021.

9393

1.Providing of surplus reserves

2．Allotment to the owners (or - -

894865021.894865021.

shareholders) 93 93

3．Other

(IV) Internal transferring of owners’

equity

1. Capitalizing of capital reserves (or to

capital shares)

2. Capitalizing of surplus reserves (or

to capital shares)

3．Making up losses by surplus

reserves.

4.Change amount of defined benefit

plans that carry forward

Retained earnings

5．Other comprehensive income carry-

over retained earnings

6．Other

(V) Special reserves

1. Provided this year

63Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2023

Other Equity instrument Less

:

Other Speciali Total of

Items Preferr Capital Shar Surplus Retained OthShare capital Oth Comprehen zed owners’

ed Sustaina

er reserves es in reserves profit er

stock ble debt sive Income reserve equitystoc

k

2．Used this term（VI）Other 18430.04 18430.04

IV. Balance at the end of this term 209080612 93492672 17924877 119308420 467355812 907162394

6.003.732.691.462.496.37

64Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Amount in last year

In RMB

The first half year of 2022

Other Equity instrument Less

:

Other Speciali Total of

Items Preferr Capital Shar Surplus Retained OthShare Capital Oth Comprehen zed owners’

ed Sustaina reserves es in reserves profit er

er

stock ble debt sive Income reserve equitystoc

k

I.Balance at the end of last year 209080612 93485128 19217746 104540306 458648201 884971995

6.005.516.343.006.106.95

Add: Change of accounting policy 509125.37 509125.37

Correcting of previous errors

Other

II.Balance at the beginning of current 209080612 93485128 19217746 104540306 458699114 885022908

year 6.00 5.51 6.34 3.00 1.47 2.32

---

III.Changed in the current year 88237.17 34872070. 207870189. 242654022.

602669

-

（I）Total comprehensive income 983889302. 949017231.34872070.

5696

60

(II) Investment or decreasing of capital

by owners

1．Ordinary Shares invested by shareh

olders

2．Holders of other equity instruments

invested capital

3.Amount of shares paid and accounted

as owners’ equity

4．Other（III）Profit allotment - -

65Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2022

Other Equity instrument Less

:

Other Speciali Total of

Items Preferr Capital Shar Surplus Retained OthShare Capital Oth Comprehen zed owners’

ed Sustaina reserves es in reserves profit er

er

stock ble debt sive Income reserve equitystoc

k

119175949119175949

1.821.82

1.Providing of surplus reserves

2．Allotment to the owners (or - -

119175949119175949

shareholders) 1.82 1.82

3．Other

(IV) Internal transferring of owners’

equity

1. Capitalizing of capital reserves (or to

capital shares)

2. Capitalizing of surplus reserves (or

to capital shares)

3．Making up losses by surplus

reserves.

4.Change amount of defined benefit

plans that carry forward

Retained earnings

5．Other comprehensive income carry-

over retained earnings

6．Other

(V) Special reserves

1. Provided this year

2．Used this term

66Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The first half year of 2022

Other Equity instrument Less

:

Other Speciali Total of

Items Preferr Capital Shar Surplus Retained OthShare Capital Oth Comprehen zed owners’

ed Sustaina reserves es in reserves profit er

er

stock ble debt sive Income reserve equitystoc

k（VI）Other 88237.17 88237.17

IV. Balance at the end of this term 209080612 93493952 15730539 104540306 437912095 860757505

6.002.685.743.002.219.63

67Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

III. Company Profile

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

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

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

Co. Ltd. after reorganization pursuant to the approval of the Office of Joint Examination Group of

Experimental Units of Share Holding System with YLSB (1993)No. 68 document. The share capital structure

after reorganization is as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

July 1996.

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

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

stock company limited.

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

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

reserve on 3.3-for-10 basis.

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

No. 487 document the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term

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

RMB 1 in January 1998.

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

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

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

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

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

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

68Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

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

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

2001.

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

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

2000 i.e. 838078499 shares as base. The date of stock right registration was May 21 2001. The ex-right date

was May 22 2001.

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

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

12. On December 21 2005 the Company's plan for share holding structure reform was voted through at the

shareholders' meeting concerning A shares. On January 26 2006 The Ministry of Commerce of PRC issued

“The approval on share converting of Guangdong Provincial Expressway Development Co. Ltd.” to approvethe share equity relocation and transformation. On October 9 2006 according to the “Circular aboutimplementing of share equity relocation and relative trading” issued by Shenzhen Stock Exchange the

abbreviation ID of the Company’s A shares was restored from “G-Expressway” “Expressway A”.Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to Parties

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

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

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

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

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

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

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

Yadong Fuxing Yalian Investment Co.Ltd Tibet Yinyue Investment Management Co.Ltd and Guangfa

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

July 8 2016.

2. Company's registered place and headquarters address

Company name：Guangdong Provincial Expressway Development Co. Ltd.Registration placeNo.85 Baiyun Road Yuexiu District Guangzhou.Headquarters Office ：45-46/F Litong Plaza No.32 Zhujiang East Road Zhujiang New City Tihe Disrtict

Guangzhou

3. Business nature and main business activities

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

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

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

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

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

be operated only after being approved by relevant departments).

69Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai ExpresswayJingzhu

Expressway Guangzhu Section and Guanghui Expressway investment in technological industries

and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangzhou

Guanghui Expressway Co. Ltd.. Guangdong Jiangzhong Expressway Co.Ltd. Zhaoqing Yuezhao Expressway

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

Petty Loan Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd Hunan Lianzhi

Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.and Shenzhen Garage Electric Pile

Technology Co. Ltd.

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

(1) Scope of current consolidated financial statements

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

Investment Co. Ltd. Yuegao Capital Holding (Guangzhou) Co. Ltd. its holding subsidiaries Guangfo

Expressway Co. Ltd. Jingzhu Expressway Guangzhu Section Co. Ltd. and Guanghui Expressway Co. Ltd..

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

None.

5. Approval and submission date of financial report

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

282023.

IV. Basis for the preparation of financial statements

1.Preparation basis

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

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

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

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

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

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

Regulatory Commission (CSRC).According to the relevant accounting regulations in Chinese Accounting Standards for Business Enterprises

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

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

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

2.Continuation

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

cause material doubts as to the continuation capability of the Company.

70Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

V. Significant Accounting Policies and Accounting Estimates

Specific accounting policies and accounting estimates are indicated as follows:

None

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

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

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

position business result and cash flow of the Company. In addition the financial statements of the Company

comply in all material respects with the revised disclosing requirements for financial statements and the

Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15—General

Provisions on Financial Reports (2014 Revision) issued by China Securities Regulatory Commission (CSRC) in

2014Notice on Matters Related to the Implementation of New Enterprise Accounting Standards by Listed

Companies issued in 2018.

2. Accounting period

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

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

calendar year from January 1 to December 31.

3.Operating cycle

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

processing to the time when cash or cash equivalents are realized. The Company takes 12 months as a business

cycle and uses it as a criterion for liquidity classification of assets and liabilities.

4.Standard currency for bookkeeping

The Company adopts CNY to prepare its functional statements.

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

Same Control

1.Business Combinations under the Same Control

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

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

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

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

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

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

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

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

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

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

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

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

shall be adjusted.All directly related expenses incurred by the Company as a combining party for business combination

71Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

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

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

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

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

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

sheet consolidated income statement and consolidated cash flow statement.For the consolidated balance sheet the book value of the combined party in the consolidated financial

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

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

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

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

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

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

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

consolidated financial statements.

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

and after the combination it is a business combination not under the same control.Business Combinations not under the Same Control

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

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

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

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

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

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

initial recognized amount of equity securities or debt securities.For the long-term equity investment obtained by holding combination not under the same control the

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

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

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

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

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

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

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

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

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

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

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

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

72Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

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

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

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

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

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

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

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

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

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

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

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

invested party.

6. Compilation method of consolidated financial statements

(1) Consolidation scope

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

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

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

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

investee(s) structured subjects etc.).

(2) Compilation method of consolidated financial statements

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

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

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

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

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

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

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

periods of the parent company before combination.

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

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

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

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

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

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

consolidated balance sheet is not adjusted when the consolidated balance sheet is prepared.During the reporting period the income expenses and profits of subsidiaries added by business combination

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

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

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

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

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

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

73Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

7.Recognition Standard of Cash & Cash Equivalents

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

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

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

change.

8.Foreign Currency Transaction

(1) Foreign currency business

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

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

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

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

74Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

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

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

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

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

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

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

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

the capitalization conditions.

(2) Translation of foreign currency financial statements

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

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

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

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

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

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

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

financial statements shall be handled according to the above provisions.

9.Financial instruments(Does not include impairment)

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

agreements.

（1）Classification recognition and measurement of financial assets

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

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

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

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

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

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

initial recognition amount.* Financial assets measured at amortized cost

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

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

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

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

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

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

losses.* Financial assets measured at fair value and changes included in other comprehensive income

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

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

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

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

75Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

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

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

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

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

comprehensive income and not be included in current profit and loss.* Financial assets measured at fair value and changes included in current profits and losses

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

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

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

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

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

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

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

（2）Classification recognition and measurement of financial liabilities

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

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

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

relating to other financial liabilities are included in the initial recognition amounts.* Financial liabilities measured by the fair value and the changes recorded in profit or loss

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

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

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

their changes are recorded in the current profit or loss

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

76Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(4) Termination confirmation of financial liabilities

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

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

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

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

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

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

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

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

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

and losses of the current period.

（5）Offsetting financial assets and financial liabilities

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

77Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

values are not available or are not practicable.

（7）Equity instruments

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

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

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

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

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

10. Impairment of financial instruments

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

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

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

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

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

(1) Method of confirming impairment provision

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

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

simplified method).Credit loss refers to the difference between the cash flow of all contracts discounted according to the

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

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

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

78Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

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

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

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

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

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

including forward-looking information when evaluating expected credit losses.Assuming that their credit risk has not increased significantly since the initial recognition the Company may

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

instruments with low credit risk on the balance sheet date.

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

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

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

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

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

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

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

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

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

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

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

(4) Accounting treatment of impairment of financial assets

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

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

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

provision the difference is deemed as impairment profit.

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

* Receivable Account and Contract assets

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

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

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

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

different portfolios based on their credit risk characteristics:

Items Basis for determining combination:

Protfolio 1：Aging protfolio This portfolio is characterized by the aging of receivables as a credit risk.Portfolio 2：Quality Guarantee portfolio This portfolio is the contract quality guarantee fund and other funds

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

specifically as follows：

Aging Proportion （%）

Within 1 year（Including 1 year） 0

1-2 years 10

79Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

2-3 years 30

3-4 years 50

4-5 years 90

Over 5 years 100

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

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

contract assets.* Other receivable

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

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

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

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

Items Basis for determining combination:

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

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

business activities.Protfolio 3 Other receivables other than the above portfolio.Combination of deposit quality assurance fund and deposit and reserve fund combination except for

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

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

other combinations is aging analysis and the accrual proportion is the same as accounts receivable.* Creditor's rights investment

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

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

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

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

11.Contract assets and Contract liabilities

In the contract between the Company and customers the Company has the right to charge the contract price

for the goods and related services that have been transferred to customers and meanwhile undertake the

performance obligation of transferring the goods or services to customers. When the customer actually pays the

contract consideration or the enterprise has transferred the goods or services to the customer before the

consideration becomes due and payable the right to receive the consideration due to the transferred goods or

services shall be listed as contract assets and recognized as accounts receivable or long-term receivables when the

unconditional right of collection is obtained. `

In the contract between the Company and customers the Company has the right to receive the contract

consideration before transferring the goods or services to customers and in the meantime list the obligation to

transfer goods or services to customers due to the consideration received or receivable from customers as

contractual liabilities. When the Company fulfills its obligation to transfer goods or provide services to customers

the contractual liabilities are recognized as income.The Company shall list the contract assets and liabilities under the same contract in net amount.

80Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

12. Long-term equity investments

(1) Initial measurement

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

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

determined in accordance with the following provisions:

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

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

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

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

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

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

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

audit fees evaluation fees legal service fees etc. are included in the current profits and losses when they occur.B. In the business combination not under the same control the Company determines the combination cost by

distinguishing the following situations:

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

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

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

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

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

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

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

occur;

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

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

combination cost can be reliably measured they will be included in the combination cost.* Except for the long-term equity investment formed by business combination the initial investment cost of

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

provisions:

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

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

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

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

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

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

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

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

long-term equity investment.

(2) Subsequent measurement

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

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

81Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

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

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

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

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

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

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

current profits and losses and the cost of long-term equity investment shall be adjusted at the same time.After obtaining the long-term equity investment the investment income and other comprehensive income

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Company and the investee are asset impairment losses which shall be fully recognized.Part of the company's equity investment in affiliated enterprises is indirectly held through venture capital

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

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

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

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

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

accounted by equity method when disposing of the investment it adopts the same basis as the investee's direct

disposal of related assets or liabilities and accounts for the part originally included in other comprehensive

income according to the corresponding proportion.

(3) Basis to determine joint control over and significant influence on the investee

Joint control refers to the common control of an arrangement in accordance with the relevant agreement and

82Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

the relevant activities of such arrangement must be unanimously agreed by the participants who share the control

rights before making decisions. Significant influence means that the investor has the right to participate in the

decision-making on the financial and operating policies of the investee but cannot control or jointly control the

formulation of these policies with other parties. When determining whether the investee can be controlled or exert

significant influence the potential voting rights factors such as current convertible bonds and current executable

warrants of the investee held by the Company and other parties shall be considered at the same time.

13.Investment Property

The measurement mode of investment property

The measurement by the cost method

Depreciation or amortization method

Investment property is held to earn rentals or for capital appreciation or for both. Investment property

includes leased or ready to transfer after capital appreciation land use rights and leased buildings.

（1）The measurement mode of investment property

* Depreciation or amortization method

The estimated service life net salvage value rate and annual depreciation (amortization) rate of investment

real estate are listed as follows:

Type Estimated service life (years) Estimated net salvage Annual depreciation

value rate (amortization) rate

Land use right Remaining useful life

Houses and buildings 20-30 years 3%-10% 3%-4.85%

* Impairment test method and accounting treatment method

See "30. Asset Impairment" for details of impairment test methods and impairment provision accrual

methods of investment real estate.

(2) Conversion of investment real estate

The Company has conclusive evidence that the use of real estate has changed. When converting investment

real estate into self-use real estate or inventory the fair value on the day of conversion is taken as the book value

of self-use real estate and the difference between fair value and original book value is included in current profits

and losses. When self-use real estate or inventory is converted into investment real estate measured by fair value

model the investment real estate is priced according to the fair value on the conversion day. If the fair value on

the conversion day is less than the original book value the difference is included in the current profits and losses;

If the fair value on the conversion date is greater than the original book value the difference shall be included in

other comprehensive income.

14.Fixed assets

（1）Confirmation conditions

The Company's fixed assets refer to tangible assets held for the production of commodities provision of

labor services leasing or operation management which have a service life of more than one year and whose

economic benefits are likely to be included into the Company and whose costs can be reliably measured.

1）The classification of the fixed asset

The Company's fixed assets include roads and bridges houses and buildings machinery and equipment

electronic equipment transportation tools and other equipment.

83Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

（2）Depreciation method

Expected useful Residual rate Annual depreciation

Type Depreciation method

life(Year) （%） rate(%)

Guangfo Expressway Working flow basis 28 years 0%

Fokai Expressway-Xiebian to

Working flow basis 40 years 0%

Sanbao Section

Fokai Expressway-Sanbao to

Working flow basis 47.5 years 0%

Shuikou Section

Jingzhu Expressway Guangzhu

Working flow basis 30 years 0%

Section

Guanghui Expressway Co. Ltd. Working flow basis 23 years 0%

House Building The straight-line

20-30 years 3%-5% 3.17%-4.85%

method

The straight-line

Machine Equipment 3-10 years 3%-5% 9.50%-32.33%

method

The straight-line

Transportation Equipment 5-8 years 3%-5% 11.88%-19.40%

method

The straight-line

Other 5 years 3%-5% 19.00%-19.40%

method

For the fixed assets formed by special reserve expenditure the special reserve shall be offset according to the

cost to form the fixed assets and the accumulated depreciation of the same amount shall be recognized. The fixed

assets will not be depreciated in future periods.According to the nature and usage of fixed assets the Company determines the service life and estimated net

salvage value of fixed assets. At the end of the year the service life estimated net salvage value and depreciation

method of fixed assets shall be rechecked and if there is any difference with the original estimate corresponding

adjustments shall be made.

15.Construction-in process

The construction in progress of the Company refers to the plant equipment and other fixed assets under

construction which are accounted for in detail according to the project and recorded according to the actual cost

including direct construction and installation costs and borrowing costs that meet the capitalization conditions.When the construction in progress reaches the scheduled usable state it will be carried over to fixed assets by

temporary estimation stop interest capitalization and start to accrue depreciation according to the determined

depreciation method of fixed assets. After the project is completed and final accounts are made the original

estimated amount will be adjusted according to the amount of final accounts but the original accrued depreciation

amount will not be adjusted.

16.Borrowing cost

(1) Recognition principle and capitalization period of borrowing cost capitalization

Borrowing costs incurred by the Company can be directly attributed to the purchase construction or

production of assets that meet the capitalization conditions and shall be capitalized when the following conditions

are met at the same time and included in the relevant asset costs:

* Production and expenditure have occurred;

84Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

* Borrowing costs have already occurred;

* The purchase construction or production activities required to make the assets reach the intended usable

or saleable state have started.Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are

abnormally interrupted in the process of purchase construction or production and the interruption time

continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as

expenses and included in the current profits and losses until the purchase and construction of assets or the

resumption of production activities. If the interruption is a necessary procedure for the purchased built or

produced assets that meet the capitalization conditions to reach the intended usable or saleable state the

capitalization of borrowing costs will continue.Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased built

or produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as

expenses in the current period.

(2) Calculation method of capitalization amount of borrowing costs

Where a special loan is borrowed for the purpose of purchasing building or producing assets that meet the

capitalization conditions it shall be determined by deducting the interest income obtained by depositing unused

loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the

investment income obtained by temporary investment.If the general loan is occupied for the purpose of purchasing building or producing assets that meet the

capitalization conditions the interest amount of the general loan that should be capitalized shall be calculated and

determined according to the weighted average of the accumulated asset expenditure exceeding the special loan

portion multiplied by the capitalization rate of the occupied general loan. Capitalization rate is calculated and

determined according to the weighted average interest rate of general borrowings.

17.Intangible assets

(1) Pricing method useful life and impairment test

The Company recognizes the identifiable non-monetary assets owned or controlled by the enterprise as

intangible assets which have no physical form and the estimated future economic benefits related to the assets

are likely to flow into the enterprise and the cost of the assets can be reliably measured.The intangible assets of the Company are recorded according to the amount actually paid or the determined

value.

(1) If the purchase price of intangible assets exceeds the normal credit conditions which is of financing

nature in essence the cost of intangible assets is determined based on the present value of the purchase price. The

difference between the actual paid price and the present value of the purchase price shall be included in the

current profits and losses within the credit period except that it should be capitalized according to the regulations.

(2) The intangible assets invested by investors shall be taken as the cost according to the value agreed in the

investment contract or agreement unless the value agreed in the contract or agreement is unfair.Intangible assets with limited service life of the Company shall be amortized on average within the service

life since the intangible assets are available for use. Intangible assets with uncertain service life are not amortized.The amortization amount of intangible assets is the amount after deducting the estimated salvage value from its

cost. For intangible assets for which impairment provision has been made the accumulated amount of impairment

provision for intangible assets has to be deducted.

85Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The amortization period of intangible assets with limited service life is as follows:

Type Amortization period

Land use right Remaining useful life

Software 3-5 years

Toll road franchises Operating period for residual charges

（2）The expenditure of internal research and development projects

Research refers to an original and planned investigation to acquire and understand new scientific or technical

knowledge. Development refers to the application of research results or other knowledge to a plan or design to

produce new or substantially improved materials devices and products before commercial production or use.Expenditures during the research phase of internal research and development projects are included in the

current profits and losses when they occur. Expenditures in the development stage of internal research and

development projects that meet the following conditions are recognized as intangible assets: it is technically

feasible to complete the intangible assets so that they can be used or sold; Have the intention to complete the

intangible assets and use or sell them; The ways in which intangible assets generate economic benefits including

those that can prove that there is a market for products produced by using the intangible assets or that the

intangible assets themselves exist in the market and that the intangible assets will be used internally should prove

their usefulness; Have sufficient technical financial and other resources to complete the development of the

intangible assets and have the ability to use or sell the intangible assets; Expenditures attributable to the

development stage of the intangible assets can be measured reliably.

18. Long-term amortizable expenses

Long-term deferred expenses are recorded according to the actual amount incurred and are amortized

equally in installments during the benefit period or within the prescribed period. If the long-term prepaid expense

item cannot benefit the future accounting period the amortized value of the item that has not been amortized will

be transferred to the current profits and losses.

19. Employee Benefits

Employee compensation refers to various forms of remuneration or compensation given by the Company for

obtaining services provided by employees or dissolving labor relations. Employee compensation includes short-

term salary post-employment benefits dismissal benefits and other long-term employee benefits. Benefits

provided by the Company to spouses children dependents survivors of deceased employees and other

beneficiaries of employees are also employee compensation.

（1）Accounting methods of short-term benefits

During the accounting period when employees provide services the Company recognizes the actual short-term

salary as a liability which is included in the current profits and losses except that other accounting standards

require or allow it to be included in the cost of assets.

(2) Accounting methods for post-employment benefits

The Company classifies the post-employment benefit plan into defined contribution plan and defined benefit

plans. Post-employment benefit plan refers to the agreement reached between the Company and employees on

post-employment benefits or the rules or measures formulated by the Company to provide post-employment

benefits to employees among which the set deposit plan refers to the post-employment welfare plan in which the

Company no longer undertakes further payment obligations after paying a fixed fee to an independent fund;

86Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Defined benefit plans refers to the post-employment benefit plan except the set-up deposit plan.

(3) Accounting Treatment Method of Demission Welfare

If the Company provides dismissal benefits to employees the employee compensation liabilities arising from

the dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: when

the company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relations

plan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganization

involving the payment of dismissal benefits.

（4）Other long-term employee benefits

If other long-term employee benefits provided by the Company to employees meet the conditions of the set

deposit plan they shall be handled according to the accounting policies of the set deposit plan mentioned above;

Otherwise the net liabilities or net assets of other long-term employee benefits shall be recognized and measured

in accordance with the accounting policies of defined benefit plans mentioned above.

20.Estimated liabilities

(1) Recognition criteria of estimated liabilities

If the obligations related to contingencies stipulated by the Company meet the following conditions at the

same time they are recognized as estimated liabilities:

* The obligations are the current obligations undertaken by the enterprise;

* Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;

* The amount of the obligations can be measured reliably.

(2) Measurement method of estimated liabilities

Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill

relevant current obligations. There is a continuous range of required expenditure and the possibility of occurrence

of various results in this range is the same and the best estimate is determined according to the intermediate value

in this range. In other cases the best estimates are treated as follows:

* Contingencies involving a single item shall be determined according to the most probable amount.* Contingencies involving multiple items shall be calculated and determined according to various possible

results and relevant probabilities.When determining the best estimate the risk uncertainty and time value of money related to contingencies

shall be considered comprehensively. If the time value of money has great influence the best estimate is

determined by discounting the related future cash outflow.If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be

compensated by a third party the compensation amount can be recognized as an asset only when it is basically

confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the

estimated liabilities.The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is

conclusive evidence that the book value cannot truly reflect the current best estimate the book value shall be

adjusted according to the current best estimate.

21. Revenues

Accounting policies adopted for income recognition and measurement

(1) Revenue recognition principle

87Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Since the starting date of the contract the company shall evaluate the contract identifies each individual

performance obligation contained in and determines whether each individual performance obligation is

performed within a certain period of time or at a certain point of time.The performance obligation is defined as fulfillment within a certain period of time if one of the following

conditions is met otherwise it is defined as fulfilled at a certain point in time: * The customer obtains and

consumes the economic benefits brought by the company's performance while the company performs the contract;

* The customer can control the goods under manufacturing or services during the company's performance; *

The goods or services produced during the company's performance have irreplaceable uses and the company has

the right to accumulate for the completed performances during the entire contract period.For obligations performed within a certain period of time the company recognizes revenue in accordance

with the performance progress in that period. If the performance progress cannot be reasonably determined and

the cost incurred is expected to be compensated the revenue shall be recognized according to the amount of the

cost incurred until the performance progress can be reasonably determined. For obligations performed at a certain

point in time revenue shall be recognized at the point when the customer obtains control of the relevant goods or

services. When judging whether the customer has obtained control of the product the company shall consider the

following points: * The company has the current right to receive payment for the product that is the customer

has the current payment obligation for the product; * The company has transferred the legal ownership of the

product to the customer that is the customer has the legal ownership of the product; * The company has

transferred the physical product to the customer that is the customer has physically taken possession of the

product; * The company has transferred the main risks and rewards on the ownership of the product to the

customer that is the customer has obtained the main risks and rewards on the ownership of the product; * The

customer has accepted the product;* Other signs that the customer has obtained control of the product.

(2) Principle of revenue measurement

* The company shall measure revenue based on the transaction price allocated to each individual

performance obligation. The transaction price is the amount of consideration that the company expects to be

entitled to receive due to the transfer of goods or services to customers while does not include payments received

on behalf of third parties and payments expected to be returned to customers.* If there is variable consideration in the contract the company shall determine its best estimate according

to the expected value or the most likely amount but the transaction price including the variable consideration shall

not exceed the accumulated amount that if relevant uncertainty is eliminated will most likely have no significant

reversal.* If there is any significant financing component in the contract the company shall determine the

transaction price based on the amount payable in cash when the customer assumes control of the goods or services.The difference between transaction price and contract consideration shall be amortized through effective interest

method during the contract period. On the starting date of contract if the company expects that the customer will

obtain control of the goods or services and pays the price within one year the significant financing component in

contract shall not be considered.* If the contract contains two or more performance obligations the company shall on date of the contract

allocate the transaction price to each individual obligation item in accordance with the relative proportion of the

separate selling price of promised goods.The adoption of different business models in similar businesses leads to differences in accounting policies for

revenue recognition

(3) Specific methods of revenue recognition

(1) Toll service fee income

88Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The toll income of roads and bridges is determined according to the amount collected and receivable by

vehicles when passing through.

(2) Income from providing labor services

For services started and completed in the same fiscal year income is recognized when the services are

completed. If the beginning and completion of labor services belong to different fiscal years the Company shall

on the balance sheet date recognize the related labor income by the percentage of completion method provided

that the result of the labor service transaction can be reliably estimated. When the following conditions can be

satisfied the results of the transaction can be reliably estimated: * the total income and total cost of labor

services can be reliably measured;* the economic benefits related to the transaction can flow into the enterprise;

（4） the degree of completion of labor services can be reliably determined.

For services started and completed in the same fiscal year income is recognized when the services are

completed. If the beginning and completion of labor services belong to different fiscal years the Company shall

on the balance sheet date recognize the related labor income by the percentage of completion method provided

that the result of the labor service transaction can be reliably estimated. When the following conditions can be

satisfied the results of the transaction can be reliably estimated: * the total income and total cost of labor

services can be reliably measured;* the economic benefits related to the transaction can flow into the enterprise;

If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably the

following situations shall be dealt with respectively:

* If the labor cost already incurred is expected to be compensated the income from the service shall be

recognized according to the amount of the labor cost already incurred and the labor cost shall be carried over at

the same amount.* If the incurred labor cost is not expected to be compensated the incurred labor cost shall be included in

the profits and losses of the current period and the income from the provision of labor service shall not be

recognized.When the contracts or agreements signed between the Company and other enterprises include selling goods

and providing services if the part for selling goods and the part for providing services can be distinguished and

measured separately the part for selling goods will be treated as goods sales and the part for providing services

will be treated as service provision. Sales of goods and services can not be distinguished or although they can be

distinguished they can not be measured separately. All parts for the selling goods and providing services will be

treated as sales of goods.The adoption of different business models in similar businesses leads to differences in accounting policies for

income recognition

None

22. Government Grants

Government subsidies are recognized when they meet the conditions attached to government subsidies and

can be received.Government subsidies for monetary assets shall be measured according to the amount received or receivable.Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be obtained

reliably it shall be measured according to the nominal amount of 1 yuan.Government subsidies related to assets refer to government subsidies obtained by the Company for

purchasing and building or forming long-term assets in other ways; Otherwise as a government subsidy related to

income.Where the government documents do not specify the object of the subsidy and the subsidy can form long-

term assets the part of the government subsidy corresponding to the value of the assets shall be regarded as the

89Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

government subsidy related to the assets and the rest shall be regarded as the government subsidy related to the

income; Where it is difficult to be distinguished government subsidies as a whole are treated as income-related

government subsidies.Government subsidies related to assets offset the book value of related assets or are recognized as deferred

revenue and included in profits and losses by stages according to a reasonable and systematic method within the

service life of related assets. Government subsidies related to income which are used to compensate related costs

or losses that have occurred shall be included in current profits and losses or offset related costs; If they are used

to compensate related costs or losses in later periods they will be included in the deferred revenue and they will

be included in the current profits and losses or offset related costs during the recognition period of related costs or

losses. Government subsidies measured in nominal amount are directly included in current profits and losses. The

Company adopts a consistent approach to the same or similar government subsidy business.Government subsidies related to daily activities according to the essence of economic business are included

in other income or offset related costs. Government subsidies irrelevant to routine activities shall be included into

the non-operating receipt and disbursement.When the recognized government subsidy needs to be returned if the book value of related assets is offset

during initial recognition the book value of assets will be adjusted; If there is a relevant deferred revenue balance

the book balance of the relevant deferred revenue will be offset and the excess will be included in the current

profits and losses; In other cases it is directly included in the current profits and losses.

23.Deferred income tax assets and deferred income tax liabilities

The Company adopts the balance sheet liability method for income tax accounting treatment.

(1) Deferred tax assets

* If there is a deductible temporary difference between the book value of an asset or liability and its tax

basis the deferred income tax assets generated by the deductible temporary difference shall be calculated and

confirmed according to the applicable tax rate during the expected period of recovering the asset or paying off the

liability.* On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be

obtained in the future period to offset the deductible temporary difference the unrecognized deferred income tax

assets in the previous period shall be recognized.* On the balance sheet date the book value of deferred income tax assets shall be reviewed. If it is unlikely

that enough taxable income will be obtained in the future period to offset the benefits of deferred income tax

assets the book value of deferred income tax assets will be written down. When sufficient taxable income is likely

to be obtained the written-down amount will be reversed.

(2) Deferred income tax liabilities

If there is a taxable temporary difference between the book value of assets and liabilities and their tax basis

the deferred income tax liabilities arising from the taxable temporary difference shall be recognized according to

the applicable tax rate during the expected period of recovering the assets or paying off the liabilities.

24Lease

(1) Identification of lease

On the commencement date of the contract the Company as the lessee or lessor evaluates whether the

customers in the contract have the right to obtain almost all economic benefits arising from the use of the

identified assets during the use period and has the right to lead the use of the identified assets during the use

90Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

period. If one party to the contract transfers the right to control the use of one or multiple identified assets within a

certain period of time in exchange for consideration the Company will consider the contract as lease or lease-

included.

（2）The Company as the lessee

On the start date of the lease term the Company recognizes the right-to-use assets and lease liabilities for all

leases except for short-term leases and low-value asset leases that are simplified.The accounting policy of the right-to-use assets is shown in Note V. 25.Lease liabilities are initially measured according to the unpaid lease payment amount on the start date of the

lease term and the present value calculated according to the implied interest rate of the lease or the incremental

borrowing interest rate. The lease payment amount includes: fixed payment amount and substantial fixed payment

amount. If there is lease incentive the related amount of lease incentive shall be deducted; variable lease

payments depending on index or ratio; the exercise price of the option provided that the lessee reasonably

determines that the option will be exercised; payment for exercising the option to terminate the lease provided

that the lease period reflects that the lessee will exercise the option to terminate the lease; and the amount

expected to be paid according to the residual guarantee value provided by the lessee. The interest expense of the

lease liability in each period of the lease term shall be calculated subsequently according to the fixed periodic

interest rate and included in the current profit and loss. Variable lease payments that are not included in the

measurement of lease liabilities are included in the current profits and losses when actually incurred.Short-term lease

Short-term lease refers to the lease with a lease term of no more than 12 months on the start date of the lease

term except for the lease with purchase option.The Company includes the lease payment of short-term lease into the related asset cost or current profit and

loss according to the straight-line method in each period of the lease term.Low-value asset lease

Low-value asset lease refers to the lease in which the value of a single leased asset is less than RMB 100000

when it is brand new.The Company includes the lease payment of low-value assets into the related asset cost or current profit and

loss according to the straight-line method in each period of the lease term.For the lease of low-value assets the Company chooses to adopt the simplified treatment method mentioned

above according to the specific conditions of each lease.

(3) The Company serves as the lessor

The Company when as the lessor recognizes the leases that have substantially transferred all risks and

rewards related to asset ownership as financial leases and other leases except financial leases as operating leases.Accounting methods for operating leases

For the rent in the operating lease the Company recognizes the current profits and losses according to the

straight-line method in each period of the lease term. The initial direct expenses incurred in connection with the

operating lease shall be capitalized allocated on the same basis as the rental income recognition during the lease

term and included in the current profits and losses by stages. The variable lease payments obtained related to

operating leases that are not included in the lease receipts are included in the current profits and losses when they

actually occur.Accounting treatment method of leasing

In financing lease at the beginning of the lease term Japanese companies take the net investment in leasing

as the recorded value of the financing lease receivable and the net investment in leasing is the sum of the

unsecured residual value and the present value of the lease proceeds that have not yet been received on the start

91Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

date of the lease term discounted according to the implied interest rate of the lease. As the lessor the Company

calculates and recognizes the interest income of each period in the lease term according to the fixed periodic

interest rate. The variable lease payments obtained by the Company as the lessor that are not included in the

measurement of net lease investment are recorded into the current profits and losses when they actually occur.The derecognition and impairment of financial lease receivables shall be treated according to the provisions

of Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments

and Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets.

25.The right to use assets

(1) Conditions for recognition of the right-to-use assets

The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased assets

during the lease term.On the start date of the lease term the right-to-use assets are initially measured at cost. The cost includes:

The initial measurement amount of lease liabilities; if there is lease incentive for the lease payment issued on or

before the start date of the lease term the amount related to the lease incentive enjoyed shall be deducted; initial

direct expenses incurred by the Company as the lessee; the estimated costs that the Company as the lessee will

incur for dismantling and removing the leased assets restoring the leased assets' site or restoring the leased assets

to the state agreed in the lease terms. The Company as the lessee recognizes and measures the demolition and

restoration costs in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies. It

makes subsequent adjustments to any remeasurement of lease liabilities.

(2) Depreciation method of right-to-use assets

The Company adopts the straight-line method to accrue depreciation. If the Company as the lessee can be

reasonably determined that the ownership of the leased asset is acquired at the expiration of the lease term it shall

accrue depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine

that the ownership of the leased asset can be acquired at the expiration of the lease term it shall accrue

depreciation within the shorter of the lease term and the remaining service life of the leased asset.

(3) See "27. Impairment of Assets" in "Section V Important Accounting Policies and Accounting Estimates"

for the impairment test method and the provision method for impairment of right-to-use assets.

26. Impairment of assets

The following signs indicate that the assets may be impaired:

(1) The market price of assets fell sharply in the current period which was significantly higher than the

expected decline due to the passage of time or normal use.

(2) The economic technical or legal environment in which the Company operates and the market in which

the assets are located have undergone major changes in the current period or in the near future which will have

adverse effects on the Company.

(3) The market interest rate or other market return on investment has increased in the current period which

affects the discount rate used by enterprises to calculate the present value of the estimated future cash flow of

assets resulting in a significant decrease in the recoverable amount of assets.

(4) There is evidence that the assets are outdated or their entities have been damaged.

(5) Assets have been or will be idle terminated or planned to be disposed of in advance.

(6) The evidence reported by the company shows that the economic performance of assets has been or will

be lower than expected such as the net cash flow created by assets or the realized operating profit (or loss) is far

lower than the expected amount.

92Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(7) Other indications that assets may have been impaired.

On the balance sheet date the Company judges various assets that are applicable to the Accounting

Standards for Business Enterprises No.8-Impairment of Assets such as long-term equity investment fixed assets

engineering materials construction in progress intangible assets (except those with uncertain service life) and

conducts impairment test when there are signs of impairment-estimating their recoverable amount. The

recoverable amount is determined by the higher of the net amount of the fair value of the asset minus the disposal

expenses and the present value of the estimated future cash flow of the asset. If the recoverable amount of an asset

is lower than its book value the book value of the asset shall be written down to the recoverable amount and the

written-down amount shall be recognized as the asset impairment loss which shall be included in the current

profits and losses and the corresponding asset impairment reserve shall be accrued at the same time.If there are signs that an asset may be impaired the Company usually estimates its recoverable amount on the

basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset the recoverable

amount of the asset group is determined based on the asset group to which the asset belongs.Asset group is the smallest asset portfolio that can be recognized by the Company and its cash inflow is

basically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. The

identification of asset group is based on whether the main cash inflow generated by asset group is independent of

other assets or cash inflow of asset group.The Company conducts impairment test every year for intangible assets with uncertain goodwill and service

life formed by business combination and not yet in serviceable condition regardless of whether there is any sign

of impairment. The impairment test of goodwill is carried out in combination with its related asset group or

combination of asset groups.Once the asset impairment loss is confirmed it will not be reversed in the following accounting period.

27. Fair value measurement

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

transaction that occurs on the measurement date.The Company measures related assets or liabilities at fair value assuming that the orderly transaction of

selling assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is no

major market the Company assumes that the transaction will be conducted in the most favorable market of related

assets or liabilities. The main market (or the most favorable market) is the trading market that the Company can

enter on the measurement day. The Company adopts the assumptions used by market participants to maximize

their economic benefits when pricing the assets or liabilities.When measuring non-financial assets at fair value the ability of market participants to use the assets for the

best purpose to generate economic benefits or the ability to sell the assets to other market participants for the best

purpose to generate economic benefits shall be considered.The Company adopts the valuation technology which is applicable in the current situation and supported by

sufficient available data and other information and gives priority to the relevant observable input values and only

uses the unobservable input values when the observable input values are unavailable or impractical.For assets and liabilities measured or disclosed at fair value in financial statements it shall determine the fair

value level according to the lowest level input value which is of great significance to fair value measurement as a

whole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained

on the measurement date in an active market; The second-level input value is directly or indirectly observable

input values of related assets or liabilities except the first-level input value; The third level input value is the

unobservable input value of related assets or liabilities.

93Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

On each balance sheet date the Company reassesses the assets and liabilities recognized in the financial

statements that are continuously measured at fair value to determine whether there is a conversion between the

fair value measurement levels.

28.Change of main accounting policies and estimations

(1)Change of main accounting policies

□Applicable □Not applicable

The content and reasons for the change in accounting policies Approval process Remark

On November 30 2022 the Ministry of Finance issued the No. 16

Interpretation of Accounting Standards for Business Enterprises (No. 31

[2022] Cai Hui).According to the provisions of the No. 16Interpretation for

lease transactions in which the lessee initially recognizes lease liabilities and Adopted by resolution The Company

includes them in right-of-use assets on the beginning date of the lease period by the seventh implements the relevant

the taxable temporary differences and deductible temporary differences meeting of the 10th provisions of the No. 16

arising from the initial recognition of assets and liabilities in the transaction Board of Directors on Interpretation from

shall be in accordance with the relevant provisions of Accounting Standard March 20 2023. January 1 2023.for Business Enterprises No. 18 - Income Tax and other relevant provisions

and the corresponding deferred tax liabilities and deferred tax assets are

recognized separately at the time of the transaction by enterprises.On November 30 2022 the Ministry of Finance issued the No. 16Interpretation of Accounting Standards

for Business Enterprises (No. 31[2022]Cai Hui) (hereinafter referred to as "No. 16Interpretation"). Adopted by

the resolution of the seventh meeting of the 10th Board of Directors of the Company on March 20 2023 the

Company implements the relevant provisions of the No. 16Interpretation from January 1 2023.According to the No. 16Interpretation for a lease transaction in which the lessee recognizes lease liabilities

and includes them in right-of-use assets on the beginning date of the lease period the taxable temporary

differences and deductible temporary differences arising from the initial recognition of assets and liabilities in

the transaction shall be in accordance with the relevant provisions of Accounting Standard for Business

Enterprises No. 18 - Income Tax and other relevant provisions and the corresponding deferred tax liabilities

and deferred tax assets are recognized separately at the time of the transaction by enterprises.The impact of the implementation of the above regulation on the financial statement for the year ended January

1 2023 and for comparable periods is as follows:

1). Impact on consolidated financial statement

In RMB

December 312022/January -June January 12023/January-June 2022

Items Influence number

2022（Before the change） （after change）

Long term share equity

2923368667.842923305042.30-63625.54

investment

Deferred income tax assets 128179543.02 129044978.46 865435.44

Deferred income tax

306806527.72307825916.581019388.86

liability

Retained profit 4698247435.40 4698029354.08 -218081.32

Minority shareholders’

2293019517.512293020019.87502.36

equity

94Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Investment income 162384354.53 162320728.99 -63625.54

Income tax expenses 290240426.63 290224512.53 -15914.10

2).Impact on Parent company financial statement

In RMB

December 312022/January-June 2022 January 12023/January-June 2022 Influence

Items

（（Before the change） （after change） numberLong term share equity

6096479269.506096415643.96-63625.54

investment

Deferred income tax assets 122968519.19 123579950.33 611431.14

Deferred income tax

61217804.4261985198.42767394.00

liability

Retained profit 4723852770.46 4723633182.06 -219588.40

Investment income 791745612.18 791681986.64 -63625.54

Income tax expenses 54008183.42 54001197.13 -6986.29

（2）Significant estimates changes

□Applicable √Not applicable

（3）The information of the adjusting items related to the financial statements at the beginning of the year of

first implementation due to the first implementation of new accounting standards from 2023.Adjustment

description

□Applicable □Not applicable

Note

On November 302022 the Ministry of Finance issued the No. 16Interpretation of Accounting Standards

for Business Enterprises (No. 31[2022]Cai Hui) (hereinafter referred to as "No. 16Interpretation"). According to

the relevant requirements of No.16 the company shall make adjustments to the relevant accounting policies

adopted accordingly.VI. Taxation

1. Major category of taxes and tax rates

Tax category Tax basis Tax rate

VAT Taxable income 3%5%6%9%13%

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%

The disclosure on the rate of income tax of taxpayers in different enterprises is stated below

None

2.Preferential tax treatment

None

95Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

VII. Notes on major items in consolidated financial statements of the Company

1. Monetary funds

In RMB

Items Amount in year-end Balance Year-beginning

Cash 56693.11 43420.71

Bank deposit 5275421651.44 4285350107.61

Among them: Deposits with financial

2824451248.422389294052.10

companies

Other monetary funds 516123.20 515903.01

Interest receivable 8855524.15 4672059.45

Total 5284849991.90 4290581490.78

Other note

1）. As of June 30 2023 the interest receivable is RMB8855524.15 from interest accrued on seven-day call

deposits.

2）.As of June 302023The balance of restricted bank deposits at the end of the period was 1221200.00 yuan

which was the land reclamation fund deposited into the fund custody account for the reconstruction and expansion

project of Sanbao to Shuikou section of Fokai Expressway.

96Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

2. Account receivable

1.Classification account receivables.

In RMB

Amount in year-end Balance Year-beginning

Category Book Balance Bad debt provision Book value Book Balance Bad debt provision Book value

Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)

Accrual of bad

debt provision 3143664.00 2.74% 3143664.00 100.00% 3143664.00 2.80% 3143664.00 100.00%

by single

Including：

Accrual of bad

debt provision 111455816.08 97.26% 2593346.23 2.33% 108862469.85 109016714.23 97.20% 647916.67 0.59% 108368797.56

by portfolio

Including：

Aging portfolio 111455816.08 97.26% 2593346.23 2.33% 108862469.85 109016714.23 97.20% 647916.67 0.59% 108368797.56

Other

Total 114599480.08 5737010.23 108862469.85 112160378.23 3791580.67 108368797.56

97Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Accrual of bad debt provision by single：

In RMB

Balance in year-end

Name

Book balance Bad debt provision Withdrawal proportion Reason

Guangdong Taiheng

It is not expected to be

Expressway 3143664.00 3143664.00 100.00% recovered

Development Co. Ltd.Total 3143664.00 3143664.00

Accrual of bad debt provision by portfolio: Provision for bad debts according to the aging portfolio

In RMB

Balance in year-end

Aging

Account receivable Bad debt provision Expected credit loss rate (%

Within 1 year 95338891.41

1-2 years 4200258.00 210012.90 5.00%

2-3 years 11916666.67 2383333.33 20.00%

Total 111455816.08 2593346.23

Note：

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of

other receivables if the provision for bad debts of bills receivable is accrued according to the general model of

expected credit loss:

□ Applicable √ Not applicable

Disclosure by aging

In RMB

Aging Balance in year-end

Within 1 year 95338891.41

1-2 years 4200258.00

2-3 years 11916666.67

Over 3 year 3143664.00

3-4 years 2077392.00

4-5 years 1066272.00

Subtotal 114599480.08

Bad debt reserves 5737010.23

Total 108862469.85

(2) Accounts receivable withdraw reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

In RMB

Opening Amount of change in the current period

Category Closing balance

balance Accrual Reversed or Write-off Other

98Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

collected

amount

Accrual of bad

debt provision 3143664.00 3143664.00

by single item

Accrual of bad

debt provision 647916.67 1945429.56 2593346.23

by credit risk

Total 3791580.67 1945429.56 5737010.23

Of which the significant amount of the reversed or collected part during the reporting period

None

(3) The actual write-off accounts receivable

None

(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party

In RMB

Amount of Proportion of Amount ofCompany Name ending balance total accounts ending balancereceivable % for bad debts

Services Co. Ltd. 68965060.84 60.18%

1083333.330.95%

Guangdong Lulutong Traffic Development

4200258.003.67%210012.90

Co. Ltd.

11916666.6710.40%2383333.33

Guangdong Humen Bridge Co. Ltd. 16631182.47 14.51%

Guangdong Jingzhu Expressway Guangzhu

5818074.995.08%

North Section Co. Ltd.Guangdong Taiheng Expressway 2077392.00 1.81% 2077392.00

Development Co. Ltd. 1066272.00 0.93% 1066272.00

Total 111758240.30 97.53%

（5）Account receivable which terminate the recognition owning to the transfer of the financial assets

None

(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of

accounts receivable

None

3. Prepayments

（1）Aging analysis

In RMB

Balance in year-end Balance Year-beginning

Aging Amount Proportion（%） Amount Proportion（%）

Within 1 year 4575446.85 95.37% 7645192.95 98.20%

1-2 years 82300.00 1.71%

2-3 years 140000.00 1.80%

Over 3 years 140000.00 2.92%

Total 4797746.85 7785192.95

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:

99Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

None

(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target

In RMB

Name Relations Amount Aging Reasons for non- Proportion %

with the settlement

Company

Non- No settlement

Guangdong Guanyue Road & Bridge Co. Within 1

Related 2792608.35 conditions have 58.21

Ltd. year

party been reached

Non- No settlement

China Ping An Property Insurance Co. Ltd. Within 1

Related 1444860.00 conditions have 30.12

Guangdong Branch year

party been reached

Non- No settlement

Over 3

Excellence Appraisal Related 140000.00 conditions have 2.92

years

party been reached

Guangzhou Branch of China Mobile Non- No settlement

Within 1

Communications Group Guangdong Co. Related 109830.00 conditions have 2.29

year

Ltd. party been reached

Non- No settlement

Within 1

China Insurance Guangdong Branch Related 77738.12 conditions have 1.62

year

party been reached

Total 4565036.47 95.15

4.Other accounts receivable

In RMB

Items Balance in year-end Balance Year-beginning

Dividend receivable 45903912.26 1205472.90

Other receivable 10832520.50 33250771.74

Total 56736432.76 34456244.64

（1）Interest receivable

None

（2）Dividend receivable

1) Dividend receivable

In RMB

Items Balance in year-end Balance Year-beginning

Guangdong Radio and Television

Networks investment No.1 Limited 1205472.90 1205472.90

partnership enterprise

China Everbright Bank Co. Ltd 44698439.36

Total 45903912.26 1205472.90

2）Significant dividend receivable aged over 1 year

In RMB

Balance in Whether with

Items Aging Reasons for non-recovery

year-end impairment and the

100Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

judgment basis

Guangdong Radio and Television The partnership agreement expires No it can be

Networks investment No.1 Limited 1205472.90 4-5 years and can be recovered after the recovered in the

partnership enterprise extension procedures are completed future

Total 1205472.90

3）The bad debt provision

□ Applicable √ Not applicable

（3） Other accounts receivable

1) Other accounts receivable classified

In RMB

Nature Balance in year-end Balance Year-beginning

Securities trading settlement funds 30844110.43 30844110.43

Petty cash 4489023.58 4017944.81

Highway maintenance expenditure 141431005.33 97749481.71

Deposit 2882022.39 26630350.18

Other 3461474.53 2602476.75

Total 183107636.26 161844363.88

2）The withdrawal amount of the bad debt provision：

In RMB

Stage 1 Stage 2 Stage 3

Expected credit losses

Bad Debt Reserves Expected credit losses Expected credit loss for the entire duration Total

over the next 12 over life (no credit

(credit impairment

months impairment)

occurred)

Balance as at January

97749481.7130844110.43128593592.14

12023

Balance as at January

12023 in current

This period of

43681523.6243681523.62

provision

Balance as at June

302023141431005.3330844110.43172275115.76

Loss provision changes in current period change in book balance with significant amount

□Applicable √ Not applicable

Disclosure by aging

In RMB

Aging Book balanceWithin 1 year(Including 1 year） 147426676.53

1-2 years 1410372.20

2-3 years 271243.57

Over 3 years 33999343.96

101Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

3-4 years 1713224.35

4-5 years 26560.70

Over 5 years 32259558.91

Total 183107636.26

3） Accounts receivable withdraw reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

The provision for bad debts in the current period is RMB43681523.62; and the amount of bad debt reserve

recovered or reversed in the current period is RMB0.00.Where the current bad debts back or recover significant amounts:None

4） Other account receivables actually cancel after write-off

None

5） Other receivables are classified according to the nature

In RMB

Proportion of the

total year end Closing balance

Closing

Name Nature Aging balance of the of bad debt

balance

accounts provision

receivable(%)

Department of

Highway maintenance

Transport of 141431005.33 Within 1 year 77.24% 141431005.33

expenditure

Guangdong Province

Kunlun Securities Securities trading settleme

30844110.43 Over 5 years 16.84% 30844110.43

Co.Ltd nt funds

Guangdong Litong

Real Estates Rent deposit 1816266.94 Within 1 year 0.99%

Investment Co. Ltd.Guangdong Litong

Real Estates Vehicle parking deposit 22980.00 2-3 years 0.01%

Investment Co. Ltd.Guangdong

Expressway Media Advertising revenue 693103.73 Within 1 year 0.38%

Co. Ltd.Guangdong

Expressway Media Water and electricity 2119.81 Within 1 year

Co. Ltd.Guangdong

Provincial Freeway Current account 463491.88 Over 5 years 0.25%

Co.Ltd.Total 175273078.12 95.71% 172275115.76

(6) Accounts receivable involved with government subsidies

None

(7) Other account receivable which terminate the recognition owning to the transfer of the financial

assets

None

102Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other

accounts receivable

None

5.Other current assets

I n RMB

Items Year-end balance Year-beginning balance

Advance tax payment 34733.27 1931251.29

VAT retention tax credits 111143.99

Total 34733.27 2042395.28

Other note：

103Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

6. Long-term equity investment

In RMB

Increase/decrease

Investment profit Closing

Adjustment of Cash bonus or Withdrawal

and loss Changes balance of

Investees Opening balance Additional Negative other profits of Closing balance

recognized under of other Other impairment

investment investment comprehensive announced to impairmentequity provision

the equity income issue provision

method

I. Joint venture

2. Affiliated Company

Zhaoqing

Yuezhao

310209765.8730133975.22340343741.09

Highway Co.Ltd.Guangdong

Jiangzhong

446883150.4045000000.006731118.4916005.854627613.17494002661.57

Expressway Co.Ltd.Ganzhou

Gankang

163154438.009568563.16172723001.16

Expressway Co.Ltd.Ganzhou Kangda

Expressway Co. 246268935.13 20692056.64 266960991.77

Ltd.Shenzhen Huiyan

Expressway Co. 348669767.32 14856921.37 363526688.69

Ltd.

104Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Guoyuan

Securities Co. 987867627.42 22017218.07 12110298.33 2424.19 15522387.30 1006475180.71

Ltd.Guangdong

Yuepu Small

219031496.394689969.97223721466.36

Refinancing Co.Ltd(Note)

Hunnan Lianzhi

Technology 97539945.74 2636209.56 -92400.51 100083754.79

Co. .Ltd.SPIC Yuetong

Qiyuan Chip

Power 4981238.50 -360145.07 4621093.43

Technology Co.Ltd.Shenzhen Garage

Electric Pile

98698677.53-1334752.881391816.0095972108.65

Technology Co.Ltd

Subtotal 2923305042.30 45000000.00 109631134.53 12110298.33 -73970.47 21541816.47 3068430688.22

Total 2923305042.30 45000000.00 109631134.53 12110298.33 -73970.47 21541816.47 3068430688.22

Other note

Guoyuan Securities Co. Ltd. implements the provisions of the "No. 16Interpretation of Accounting Standards for Business Enterprises" in the current period

retrospectively adjusts the financial statement of the previous period and the Company retrospectively adjusts the investment amount in Guoyuan Securities Co.Ltd.at the beginning of the period according to the shareholding ratio.

105Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

7.Other Equity instrument investment

In RMB

Items Closing balance Opening balance

Guangle Expressway Co. Ltd. 775045413.21 779705656.29

Guangdong Radio and Television

Networks investment No.1 Limited 55365396.61 55365396.61

partnership enterprise

China Everbright Bank Co. Ltd. 722232678.08 722232678.08

Huaxia Securities Co. Ltd.（Notes1）

Huazheng Asset Management Co. Ltd.（Notes2）

Total 1552643487.90 1557303730.98

Breakdown disclosure of investment in non-tradable equity instruments in the current period

In RMB

Amount of Reasons for Reasons for

other designation as other

Dividend consolidated measured at fair consolidated

Cumulative Cumulative

Items income income value and changes income

gain loss

recognized transferred to included in other transferred to

retained comprehensive retained

earnings income earnings

Non-

Guangle

transactional

Expressway Co. 26551300.00 26697111.48

purpose for

Ltd.shareholding

Guangdong

Radio and

Television Non-

Networks transactional

5365396.61

investment No.1 purpose for

Limited shareholding

partnership

enterprise

Non-

China Everbright transactional

44698439.36204671801.28

Bank Co. Ltd. purpose for

shareholding

Non-

Huaxia Securities transactional

5400000.00

Co. Ltd. purpose for

shareholding

Huazheng Asset Non-

Management Co. 1620000.00 transactional

Ltd. purpose for

106Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

shareholding

Total 71249739.36 236734309.37 7020000.00

Other note:

Note 1: The owner's equity of Huaxia Securities Co. Ltd. was negative and it entered liquidation procedure in

December 2005. The Company made full provision for impairment in respect of this long-term equity

investment of RMB 5.4 million.Note 2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal

Co. Ltd. As the June 30 2005 the amount of net assets of Huazheng Asset Management Co. Ltd. in book

was 279.132 million yuan and the appraised value was - 2299.5486 million yuan On October 14 2005

Jianyin CITIC Asset Management Co. Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to

the Company. Jianyin CITIC Asset Management Co. Ltd. was willing to pay the price of not more than 42

million yuan to acquire 100% equity of Huazheng Asset Management Co. Ltd. and solicited the Company's

opinions. The Company replied on December 5 2005 abandoning the preemptive right under the same

conditions. The Company made provision of 1.62 million yuan for impairment in respect of this long-term

equity investment of 1.62 million yuan.

8.Other non-current financial assets

In RMB

Items Closing balance Opening balance

Classified as financial assets measured at

fair value and whose changes are 181400000.00 101400000.00

included in the current profit and loss

Total 181400000.00 101400000.00

Other note：

9. Investment property

(1) Investment property adopted the cost measurement mode

√ Applicable □Not applicable

In RMB

Items Houses and buildings Land use right Construction in process Total

I. Original value

1.Opening balance 12664698.25 2971831.10 15636529.35

2.Increased amount of

the period

（1）Outsourcing

(2)Inventory Fixed

assets and

Construction project

into

(3) )Increased of

107Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Enterprise

consolidation

3.Decreased amount of

the period

（1）Disposal

（2）Other Out

4.Closing balance 12664698.25 2971831.10 15636529.35

II.Accumulated

depreciation

accumulated

amortization

1.Opening balance 10989739.14 1978645.28 12968384.42

2.Increased amount of

73774.5636784.68110559.24

the period

(1)Withdrawal or

73774.5636784.68110559.24

amortization

3.Decreased amount of

the period

（1）Disposal

（2）Other Out

4.Closing balance 11063513.70 2015429.96 13078943.66

III. Impairment

provision

1.Opening balance

2.Increased amount of

the period

（1）Withdrawal

3.Decreased amount of

the period

（1）Disposal

（2）Other Out

108Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

4.Closing balance

IV. Book value

1.Closing book value 1601184.55 956401.14 2557585.69

2.Opening book 1674959.11 993185.82 2668144.93

(2) Investment property adopted fair value measurement mode

□Applicable√ Not applicable

(3) Details of investment property failed to accomplish certification of property

In RMB

Items Book balance Reason

Transportation and other ancillary

Houses and Building 923873.94

facilities Not accreditation

10. Fixed assets

In RMB

Items Year-end balance Year-beginning balance

Fixed assets 9552205782.97 10098252638.07

liquidation of fixed assets 6503095.14

Total 9558708878.11 10098252638.07

109Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(1) List of fixed assets

In RMB

Jingzhu

Electricity

Guanghui House and Machinery Transportation

Items Guangfo ExpresswayFokai Expressway equipment and Total

Expressway Expressway Guangzhu buildings equipment equipment

other

section

I. Original price

1.Opening balance 1460270190.66 10916901136.52 6824139977.48 5136471234.45 664476347.75 1849144772.30 61642618.63 142268138.54 27055314416.33

2.Increased amount

-659820.18503520.001250706.342009004.663103410.82

of the period

（1）Purchase 49300.00 1250706.34 2009004.66 3309011.00

（2）Transfer of

project under 454220.00 454220.00

construction

(3)Increased of

Enterprise

consolidation

（4）Other -659820.18 -659820.18

3.Decreased amount

14920857.1836073395.95787665.004287225.7156069143.84

of the period

（1）Disposal or

14920857.1836073395.95787665.004287225.7156069143.84

scrap

（2）Disposition

subsidiary

（3）Other out 659820.18

4.Closing balance 1460270190.66 10916901136.52 6824139977.48 5136471234.45 648895670.39 1813574896.35 62105659.97 139989917.49 27002348683.31

II. Accumulated

depreciation

110Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Jingzhu

Electricity

Guanghui House and Machinery Transportation

Items Guangfo ExpresswayFokai Expressway Total

Expressway Expressway

equipment and

Guangzhu buildings equipment equipment

other

section

1.Opening balance 1460270190.66 5857558616.40 4285503165.86 3319516101.13 480209669.57 1409241923.31 47930132.30 92710665.93 16952940465.16

2.Increased amount of

167001611.98205719649.4895478011.1915431227.0851663388.651129558.436195843.97542619290.78

the period

（1）Withdrawal 167001611.98 205719649.48 95478011.19 15431227.08 51663388.65 1129558.43 6195843.97 542619290.78

（2）Other

3.Decreased amount

11290376.0833435034.30734341.754078416.5749538168.70

of the period

(1)Disposal or scrap 11290376.08 33435034.30 734341.75 4078416.57 49538168.70

（2）Disposition

subsidiary

4.Closing balance 1460270190.66 6024560228.38 4491222815.34 3414994112.32 484350520.57 1427470277.66 48325348.98 94828093.33 17446021587.24

III.Impairment

provision

1.Opening balance 2889394.16 1231918.94 4121313.10

2.Increased amount of

the period

(1)Withdrawal

3.Decreased amount

of the period

(1)Disposal or scrap

4.Closing balance 2889394.16 1231918.94 4121313.10

IV. Book value

111Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Jingzhu

Electricity

Items Guangfo

Guanghui Expressway House and Machinery Transportation

Fokai Expressway Total

Expressway Expressway

equipment and

Guangzhu buildings equipment equipment

other

section

1.Closing book value 4892340908.14 2332917162.14 1721477122.13 161655755.66 384872699.75 13780310.99 45161824.16 9552205782.97

2.Opening book 5059342520.12 2538636811.62 1816955133.32 181377284.02 438670930.05 13712486.33 49557472.61 10098252638.07

112Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(2)Temporarily idle fixed assets

In RMB

Accumulated Impairment

Items Original price Book value Remark

depreciation provision

House and

6176339.214767637.501408701.71

buildings

Machinery

2322167.001090248.061231918.94

equipment

(3) Fixed assets leased out from operation lease

None

（4） Details of fixed assets failed to accomplish certification of property

In RMB

Items Book balance Reason

Transportation and other ancillary

House and buildings 145880426.60

facilities，Not accreditation.

（5）liquidation of fixed assets

In RMB

Items Year-end balance Year-beginning balance

House and buildings 3630481.10

Machinery equipment 2638361.65

Transportation equipment 25443.25

Office equipment and other 208809.14

Total 6503095.14

11. Project under construction

In RMB

Items Year-end balance Year-beginning balance

Project under construction 1287072029.02 753565502.12

Total 1287072029.02 753565502.12

（1）Project under construction

In RMB

Year-end balance Year-beginning balance

Items Book balance Provision for Book value Book balance Provision for Book value

devaluation devaluation

Reconstruction and

Expansion of Nansha-

Zhuhai section of 1021162978.77 1021162978.77 553543942.17 553543942.17

Guangzhou-Macao

Expressway

Reconstruction and

Expansion of Fokai

208792748.04208792748.04152274277.83152274277.83

Expressway Sanbao to

Shuikou

Jiangxi-Shenzhen

high-speed railway 15664172.98 15664172.98 15664172.98 15664172.98

cross-section

113Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

expansion project

Guangzhou-Shantou

Railway Crossing 15098082.43 15098082.43 10576570.43 10576570.43

project

Boluo Central Station

office and living

6406068.376406068.373768689.373768689.37

facilities renovation

and expansion project

Tanwei Bridge Ship

1749246.001749246.001749246.001749246.00

Collision Project

Other 18198732.43 18198732.43 15988603.34 15988603.34

Total 1287072029.02 1287072029.02 753565502.12 753565502.12

114Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(2) Changes of significant construction in progress

In RMB

Including:

Sourc

Transferr capitalizatio Capitalizati

Other Capitalizatio e

Name of Opening ed to Proportion Project n of on of

Budget Increase decreas End balance n of of

project balance fixed % process interest interest

e interest fundin

assets this rate (%)

g

period

Reconstructi

on and

Expansion of

Nansha-

13735989200.553543942.467619036.1021162978.31820755.821918319.

Zhuhai 7.43% 7.43% 2.91% Other

00176077401

section of

Guangzhou-

Macao

Expressway

Reconstructi

on and

Expansion of

3426210000.0152274277.56518470.2208792748.075533679.32318123.5

Fokai 80.76% 93.00% 3.30% Other

0831431

Expressway

Sanbao to

Shuikou

Jiangxi-

Shenzhen

high-speed

15664172.9100.00

railway 16966900.00 15664172.98 92.32% Other

8%

cross-section

expansion

project

Guangzhou-

Shantou

10576570.4100.00

Railway 21460000.00 4521512.00 15098082.43 70.35% Other

3%

Crossing

project

115Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Boluo

Central

Station

office and

living

17000000.00 3768689.37 2637379.00 6406068.37 37.68% 37.68% Other

facilities

renovation

and

expansion

project

Tanwei

Bridge Ship

50000000.00 1749246.00 1749246.00 3.50% 3.50 Other

Collision

Project

17267626100.737576898.531296397.1268873296.107354435.24236442.

Total

007881591752

116Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(3)Provision for impairment of construction projects in the current period

None

（4）Engineering Materials：None

None

12.Use right assets

In RMB

Machinery Transportation Other

Items House and buildings Total

equipment equipment

I. Original price

1.Opening balance 21487031.29 357112.19 1007747.00 22851890.48

2.Increased amount of the

30634734.72673169.0631307903.78

period

（1）New lease 30634734.72 673169.06 31307903.78

（2）Other

3.Decreased amount of

21487031.2921487031.29

the period

（1）Transfer or hold for

sale

（2）Disposal subsidiary

（3）Other out 21487031.29 21487031.29

4.Closing balance 30634734.72 357112.19 673169.06 1007747.00 32672762.97

II. Accumulated

depreciation

1.Opening balance 18417455.29 142844.88 214034.88 18774335.05

2.Increased amount of the

4785441.3035711.22168292.2653508.725042953.50

period

（1）Withdrawal 4785441.30 35711.22 168292.26 53508.72 5042953.50

（2）Other increase

3.Decreased amount of the

21487031.2921487031.29

period

（1）Disposition

（2）Transfer or hold for

sale

（3）Other out 21487031.29 21487031.29

4.Closing balance 1715865.30 178556.10 168292.26 267543.60 2330257.26

III. Impairment provision

1.Opening balance

2.Increased amount of the

period

（1）Withdrawal

（2）Other increase

3.Decreased amount of the

period

（1）Disposition

（2）Transfer or hold for

sale

4.Closing balance

117Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Machinery Transportation Other

Items House and buildings Total

equipment equipment

IV. Book value

1.Closing book value 28918869.42 178556.09 504876.80 740203.40 30342505.71

2.Opening book value 3069576.00 214267.31 793712.12 4077555.43

13. Intangible assets

(1) List of intangible assets

In RMB

The Turnpike

Items Land use right Non-patentedPatent right Total

technology franchise

I. Original price

1.Opening balance 2701738.76 38254516.12 318348741.86 359304996.74

2.Increased amount of the

83247.9683247.96

period

(1) Purchase 83247.96 83247.96

(2)Internal Development

(3)Increased of Enterprise

Combination

3.Decreased amount of

11005016.4011005016.40

the period

（1）Disposal 11005016.40 11005016.40

（2）Government

subsidies cut

（3）Disposal subsidiary

4.Closing balance 2701738.76 27332747.68 318348741.86 348383228.30

II.Accumulated

amortization

1.Opening balance 2366543.74 32357841.52 77808140.04 112532525.30

2.Increased amount of the

7705.621003484.4711794307.9812805498.07

period

(1) Withdrawal 7705.62 1003484.47 11794307.98 12805498.07

3.Decreased amount of

11005016.4011005016.40

the period

（1）Disposal 11005016.40 11005016.40

（2）Disposal subsidiary

118Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The Turnpike

Items Land use right Non-patentedPatent right Total

technology franchise

4.Closing balance 2374249.36 22356309.59 89602448.02 114333006.97

III. Impairment provision

1.Opening balance

2.Increased amount of the

period

(1) Withdrawal

3.Decreased amount of

the period

（1）Disposal

4.Closing balance

IV. Book value

1.Closing book value 327489.40 4976438.09 228746293.84 234050221.33

2.Opening book value 335195.02 5896674.60 240540601.82 246772471.44

At the end of this period there is no intangible assets formed through the company's internal research and At the

end of this period the intangible assets formed through the company's internal research and development

accounted for 0.00% of the balance of intangible assets

⑵Details of Land use right failed to accomplish certification of property

In RMB

Reason for not obtaining the title

Items Book value

certificate

Gonghe Town Land 327489.40 Reasons left over from history

14. Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets had not been off-set

In RMB

Balance in year-end Balance Year-beginning

Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax

difference assets difference assets

Assets impairment

9858323.332464580.847912893.771978223.45

provisions

Deductible loss 25253836.36 6313459.09 363420806.96 90855201.74

Asset appraisal

appreciation

106518448.6826629612.17120375258.2430093814.56

depreciation and

amortization

Deferred income 15980161.74 3995040.44 21009212.70 5252303.27

119Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Operation lease 29736108.16 7434027.04 3461741.75 865435.44

Total 187346878.27 46836719.58 516179913.42 129044978.46

(2) Deferred income tax liabilities had not been off-set

In RMB

Balance in year-end Balance Year-beginning

Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax

difference liabilities difference liabilities

Changes in the fair

value of other equity 236734309.37 59183577.34 241394552.45 60348638.11

instruments

Deductible temporary

differences in the

916831006.67229207751.66965577119.54241394279.90

formation of asset

impairment

Difference of

amortization method of 11048885.57 2762221.40 9854438.83 2463609.71

franchise of toll road

Changes in the fair

value of trading 10400000.00 2600000.00 10400000.00 2600000.00

financial assets

Tax accounting

difference of use right 30342505.71 7585626.43 4077555.45 1019388.86

asset

Tax accounting

differences of projects 18136690.84 4534172.71

under construction

Total 1223493398.16 305873349.54 1231303666.27 307825916.58

(3) Deferred income tax assets or liabilities listed by net amount after off-set

None

(4)Details of income tax assets not recognized

In RMB

Items Balance in year-end Balance in year-begin

Deductible temporary difference 37864110.43 37864110.43

Deductible loss 21327524.22 18536190.43

Total 59191634.65 56400300.86

(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years

In RMB

Year Balance in year-end Balance in year-begin Remark

20233129535.723129535.72

20243618779.073618779.07

20253571100.293571100.29

20263889857.993889857.99

20274326917.364326917.36

20282791333.79

Total 21327524.22 18536190.43

120Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

15 .Other non-current assets

In RMB

Balance in year-end Balance Year-beginning

Items Book balance Provision Book value Book balance Provision Book value

for for

devaluation devaluation

Prepaid engineering fees 57853104.62 57853104.62 6258116.72 6258116.72

Prepaid business tax 1915476.96 1915476.96 2116662.12 2116662.12

Total 59768581.58 59768581.58 8374778.84 8374778.84

Other note：

Note

16. Short-term Borrowing

（1）Short-term Borrowing

In RMB

Items Balance in year-end Balance Year-beginning

Credit Borrowing 430000000.00

Interest payable not due 387597.20

Total 430387597.20

Note：

(2) Situation of Overdue Outstanding Short-Term Borrowing

None

17.Account payable

（1） List of account payable

In RMB

Items Balance in year-end Balance Year-beginning

Within 1 year（Including 1 year） 35191561.22 106284617.63

1-2 years（including2 years） 48777577.09 15315242.17

2-3 years（including 3 years） 9891578.33 2693624.18

Over 3 years 73471862.24 73495298.79

Total 167332578.88 197788782.77

（2）Significant payable aging more than 1 year

In RMB

Items Balance in year-end Reason

Foshan Land and resources Bureau. 30507598.21 Unsettled

Guang Zhongjiang Expressway project

17466700.00 Unsettled

Management Dept

Heshan Land and resources Bureau 9186893.60 Unsettled

Poly Changda Engineering Co. Ltd. 5415553.30 Unsettled

Foshan Chancheng District Zhang Cha

4626817.32 Unsettled

Sub-district Office

Total 67203562.43

121Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

18. Prepayment received

(1) List of Prepayment received

In RMB

Items Balance in year-end Balance Year-beginning

Within 1 year（Including 1 year） 2169988.91 1913639.06

1-2 years（Including 2 years） 1082898.18 805117.91

Total 3252887.09 2718756.97

（2）Significant payable aging more than 1 year

In RMB

Items Balance in year-end Reason

Hebei Jianhong Power Engineering Co.

1082898.18 Unsettled

Ltd.Total 1082898.18

19. Payable Employee wage

（1）Payable Employee wage

In RMB

Items Year-beginning Increase in the current Decrease in the current Year-end balance

balance period period

I. Short-term

20660328.60186686717.85187605961.9419741084.51

compensation

II.Post-

employment benefits -

32786473.0931308371.021478102.07

defined contribution pl

ans

III. Dismissal benefits 1315216.92 1315216.92

Total 20660328.60 220788407.86 220229549.88 21219186.58

（2）Short-term Remuneration

In RMB

Items Year-beginning Increase in the current Decrease in the Year-end balance

balance period current period

1.Wages bonuses allowances

465063.49136477235.72136477235.72465063.49

and subsidies

2.Employee welfare 8521719.59 8521719.59

3. Social insurance premiums 17057493.93 17032657.59 24836.34

Including ：Medical

10213027.9210189709.4023318.52

insurance

Work injury insurance 506588.92 505071.10 1517.82

Other 6337877.09 6337877.09

4.Public reserves for housing 19702163.00 19702163.00

122Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

5.Union funds and staff

17883045.404329599.115273679.5416938964.97

education fee

8.Other 2312219.71 598506.50 598506.50 2312219.71

Total 20660328.60 186686717.85 187605961.94 19741084.51

（3）Defined contribution plans listed

In RMB

Balance Year- Increase in this period Payable in this period Balance in year-end

Items

beginning

1. Basic old-age

19582722.7819540840.3841882.40

insurance premiums

2.Unemployment

791820.39789225.182595.21

insurance

3.Enterprise annuity

12411929.9210978305.461433624.46

payment

Total 32786473.09 31308371.02 1478102.07

20. Tax Payable

In RMB

Items Balance in year-end Balance Year-beginning

VAT 12628710.29 9619067.45

148023789.1858889929.38

Enterprise Income tax

Individual Income tax 550351.13 2552347.21

City Construction tax 788554.59 633666.06

Education subjoin 383867.08 306387.03

Locality Education subjoin 237270.58 185315.25

Vehicle and vessel tax

Land use tax 523762.40

Property tax 504597.91 60799.58

Stamp tax 35981.87 60261.45

Total 163676885.03 72307773.41

21.Other accounts payable

In RMB

Items Balance in year-end Balance Year-beginning

Dividend payable 920558170.17 59994517.46

Other account payable 124167228.26 131173042.77

Total 1044725398.43 191167560.23

（1）Interest payable

None

（2）Dividends payable

In RMB

Items Balance in year-end Balance Year-beginning

Common stock dividends 920558170.17 25694517.46

123Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Dividends payable- Guangdong

11550000.00

Provincial Freeway Co.Ltd.Dividends payable-Guangdong Zhujiang

21000000.00

Highway and Bridge Investment Co. Ltd

Dividends payable-HZCI 1750000.00

Total 920558170.17 59994517.46

Other explanations including significant dividends payable that have not been paid for more than 1 year it shall

disclose the reasons for non-payment:

Note: Including significant unpaid dividends payable over one year the unpaid reason shall be disclosed:

Final dividend payable 25693148.24 yuan for more a year in unpaid dividends to shareholders over the year

was mainly due to non- payment of shareholder dividends did not provide information on interest- bearing bank

did not share reform of shareholders to receive dividends or provide application

to receive dividends the bank information is incorrect resulting in failure to pay a dividend or refund.

（3）Other accounts payable

(1) Other accounts payable listed by nature of the account

In RMB

Items Year-end balance Year-Beginning balance

Estimated project cost 33034549.95 40097538.05

Deposit warranty and security deposit 64237381.43 64205413.61

Other 26895296.88 26870091.11

Total 124167228.26 131173042.77

(2) Other significant accounts payable with aging over one year

In RMB

Items Closing balance Unpaid/un-carry over reason

Poly Changda Highway Engineering Co.

20101922.48 The settlement conditions are not met

Ltd.Yayao to Xiebian extension 12499448.48 The settlement conditions are not met

Guangdong Guanyue Road & Bridge

7954762.80 The settlement conditions are not met

Co. Ltd.CCCC First Navigation Engineering

6604491.16 The settlement conditions are not met

Bureau Co. Ltd.China Railway Tunnel Group Co. Ltd. 5711835.48 The settlement conditions are not met

Total 52872460.40

22. Non-current liabilities due within 1 year

In RMB

Items Balance year-end Year-beginning balance

Long-term loans due within 1 year 145147041.19 72870082.19

Payable Bonds due within 1 year 695329608.09 40679999.99

Long-term payable due within 1 year 495283.01 944339.62

Lease liabilities due within 1 year 10151743.03 2517045.16

Total 851123675.32 117011466.96

23.Other current liabilities

In RMB

124Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Items Balance year-end Year-beginning balance

Tax to be rewritten 169097.00 600639.56

Entrusted loans and interest 500395833.33 500122916.67

Total 500564930.33 500723556.23

24. Long-term loan

(1) Category of long-term loan

In RMB

Items Balance year-end Year-beginning balance

Pledge loans 14525000.00

Credit loan 6008445000.00 5619259650.00

Interest payable when not due 5421991.19 5680782.19Less:Long-term loans due within one year（Note -145147041.19 -72870082.19V.22）

Total 5868719950.00 5566595350.00

25.Bond payable

（1）Bond payable

In RMB

Items Balance year-end Year-beginning balance

Medium- term note 1428850956.61 1428381232.94

Interest payable when not due 15625753.43 40679999.99Less:Long-term loans due within one year（Note -695329608.09 -40679999.99V.22）

Total 749147101.95 1428381232.94

125Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial

liability

In RMB

The Overflow

Withdraw Pay in current Closing

Name of the bond Book value Issue date Period Issue amount Opening balance current discount

interest at par period balance

issue amount

19 Guangdong

Expressway 2019.3.1-680000000.00 2019.2.27 680000000.00 702279764.69 13488219.16 -227377.67 27200000.00 688795361.52

2024.3.1

MTN001

20 Guangdong

Expressway 2020.3.17-750000000.00 2020.3.13 750000000.00 766781468.24 11157534.28 -242346.00 22500000.00 755681348.52

2025.3.17

MTN001

Less: Bonds

payable due within

-40679999.99695329608.09one year（NoteVII.22）

Total 1430000000.00 1428381232.94 24645753.44 -469723.67 49700000.00 749147101.95

126Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(3) Note to conditions and time of share transfer of convertible bonds

None

（4）Other financial instruments that are classified as financial liabilities

None

26.Lease liabilities

In RMB

Items Balance year-end Year-beginning balance

Long-term lease liabilities 30471738.14 2709232.95

Less：Financing costs are not

1463771.3841203.32

recognized

Less:Long-term loans due within one

10151743.032517045.16

year(Note V.22)

Total 18856223.73 150984.47

27. Long-term payable

In RMB

Items Balance year-end Year-beginning balance

Long-term payable 2022210.11 2517493.12

Total 2022210.11 2517493.12

(1) Long-term payable listed by nature of the account

In RMB

Items Balance year-end Year-beginning balance

Non-operating asset payable 2022210.11 2022210.11

Medium term bill underwriting fee 495283.01 1439622.63

Less:Long-term loans due within one

495283.01944339.62

year(Note V.22)

Total 2022210.11 2517493.12

28. Deferred income

In RMB

Items Opening balance Increase Decrease Closing balance Cause

Government

21009212.70185000000.005029050.96200980161.74

subsidy

Lease income 40073768.93 3804705.42 36269063.51

Total 61082981.63 185000000.00 8833756.38 237249225.25

Details of government subsidies：

In RMB

Amount

Amount Other Asset-

of cost

transferred income related

Beginning of New subsidy in deducted Other

Items to non- recorded in End of term or

term current period in the changes

operational the current income-

current

income period related

period

Cancellation 15907669.2 Related

20931143.875023474.62

of 5 to asset

127Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Expressway

Provincial

Toll Station

Project

Charging

Related

infrastructure 78068.83 5576.34 72492.49

to asset

rewards

Qijiang New

South city

185000000. Related

interchange 185000000.00

00 to asset

construction

project

29. Stock capital

In RMB

Changed（+，-）Balance Year- Issuance

Bonus Capitalizatio Balance in year-end

beginning of new Other Subtotal

shares n of public

share

reserve

Total of

2090806126.002090806126.00

capital shares

30. Capital reserves

In RMB

Year- beginning Increase in the current Decrease in the

Items Year-end balance

balance period current period

Share premium 508711146.99 508711146.99

Other capital reserves 234422410.04 18430.04 92400.51 234348439.57

Total 743133557.03 18430.04 92400.51 743059586.56

- The situation of change in the current capital reserve is as follows:

1. The joint venture Guangdong Jiangzhong Expressway Co. Ltd. recognized the special reserve in the

current period and the Company adjusted the book value of long-term equity investment according to the

shareholding ratio resulting in an increase in the capital reserve of 16005.85 yuan.

2. The capital reserve of Guoyuan Securities Co. Ltd. an associated enterprise has changed in the current

period.

3. Hunan Lianzhi Technology Co. Ltd. an associate of the subsidiary Yuegao Capital (Holdings)

Guangzhou Co. Ltd. repurchased the equity of other shareholders resulting in a change in the long-term equity

investment of the subsidiary accounted for by the equity method and reducing the capital reserve by 92400.51

yuan.

128Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

31. Other comprehensive income

In RMB

Amount of current period

Less：Amount transferred Less：Prior period

into profit and loss in the included in other After-tax

Year-beginning Amount After-tax

Items Year-endcurrent period that composite income Less：Income attribute to

balance incurred before attribute to the balance

recognied into other transfer to retained tax expenses minority

income tax parent company

comprehensive income in income in the shareholder

prior period current period

1.Other comprehensive

income will be reclassified

181045914.34-4660243.08-1165060.77-3495182.31177550732.03

into income or loss in the

future

Changes in fair value of

investments in other equity 181045914.34 -4660243.08 -1165060.77 -3495182.31 177550732.03

instruments

2.Other comprehensive

income reclassifiable to

-10412257.6712110298.3312110298.331698040.66

profit or loss in subsequent

periods

Including：Share of other

comprehensive income of

the investee that cannot be

-10412257.6712110298.3312110298.331698040.66

transferred to profit or loss

accounted for using the

equity method

Total of other

170633656.677450055.25-1165060.778615116.02179248772.69

comprehensive income

129Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

32. Surplus reserve

In RMB

Items Year-beginning Increase in the current Decrease in the current Year-end balance

balance period period

Statutory surplus

1373056469.021373056469.02

reserve

Total 1373056469.02 1373056469.02

33. Retained profits

In RMB

Items Amount of this period Amount of last period

Before adjustments: Retained profits in

4698029354.084760618543.78

last period end

Adjust the total undistributed profits at

510117.60

the beginning of the period

After adjustments: Retained profits at the

4698029354.084761128661.38

period beginning

Add：Net profit belonging to the owner

885644187.991276341322.98

of the parent company

Less: Statutory surplus reserve 147681138.46

Common stock dividend payable 894865021.93 1191759491.82

Retained profit at the end of this term 4688808520.14 4698029354.08

As regards the details of adjusted the beginning undistributed profits

(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations the

affected beginning undistributed profits are RMB -218081.32.

(2) As the change of the accounting policy the affected beginning undistributed profits are RMB 0.00.

(3) As the correction of significant accounting error the affected beginning undistributed profits are RMB 0.00 .

(4) As the change of consolidation scope caused by the same control the affected beginning undistributed

profits are RMB 0.00.

(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .

34.Operation income and operation cost

In RMB

Amount of this period Amount of last period

Items

Income Cost Income Cost

Main operation 2310707369.57 726266759.50 2022637008.32 682014744.35

Other operation 29729405.51 14403550.99 34783801.36 14128978.15

Total 2340436775.08 740670310.49 2057420809.68 696143722.50

35. Business tax and subjoin

In RMB

Items Amount of this period Amount of last period

Urban construction tax 4414027.47 3906433.43

130Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Education surcharge 2126579.28 1870308.46

Property tax 579768.50 1026637.79

Land use tax 523762.40 523762.40

Vehicle use tax 42143.75 43285.07

Stamp tax 136313.89 132962.51

Business tax 185247.66 185247.66

Locality Education surcharge 1414531.04 1243683.98

Total 9422373.99 8932321.30

36. Administrative expenses

In RMB

Items Amount of current period Amount of previous period

Wage 55924172.80 58799341.19

Depreciation of fixed assets 4754414.20 6814076.61

Intangible assets amortization 754955.47 953099.24

Low consumables amortization 305671.18 259600.97

Rental fee and Management fee 5680829.07 6027123.06

Business fee 276707.37 282100.73

Office expenses 3253204.38 4275751.24

Travel expenses 299557.29 114358.72

Consultation expenses 100000.00

The fee for hiring agency 2756001.59 3376068.01

Repairs cost 152240.53 189544.16

Vehicle fee 1353271.68 1304983.31

Listing fee 143396.22 11320.75

Information cost and maintenance fee 559255.14 961765.47

Other 3810168.79 2304133.58

Total 80023845.71 85773267.04

37.R& D expenses

In RMB

Items Amount of this period Amount of last period

Wage 81651.82 945204.60

Material cost 412566.35

Depreciation 5521.90

Low consumables amortization 885.00

Office expenses 4318.22

Repairs cost 391.15

Total 81651.82 1368887.22

38.Financial expenses

In RMB

Items Amount of this period Amount of last period

131Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Interest expenses 109161060.69 123517238.10

Deposit interest income（-） -18067700.31 -36907508.27

Exchange Income and loss（Gain-）

Bank commission charge 56504.09 84179.23

Other 3226.00 608147.56

Total 91153090.47 87302056.62

39.Other gains

In RMB

Items Amount of this period Amount of last period

Government Subsidy-Cancel the Special

Subsidy for Provincial Toll Station 5023474.62 5023474.62

Project of Expressway

Government Subsidy- Charging

5576.34

infrastructure incentive funds

Government subsidy-- Jiujiang Bridge

structure health monitoring system

600000.00

optimization and upgrade of vehicle

purchase tax subsidy funds

Government subsidy- Stable job

25500.00

subsidies - Expansion subsidy

Government subsidy- Stable job

1250935.46

subsidies

Government subsidy-- Enterprises with

1074875.00

industrial training subsidies

Maternity allowance 577849.71 435454.91

Withholding and remitting enterprise

39147.73156133.38

prepaid income tax fees

Withhold personal income tax handling

164638.95159544.67

fee refund

Veterans' VAT reduction and exemption 13786.43 15009.81

Withholding and remitting enterprise

62924.53

prepaid income tax fees

Total 6449973.78 8178352.38

40. Investment income

In RMB

Items Amount of this period Amount of last period

Long-term equity investment income by

109631134.53101561222.92

equity method

Disposition of the investment income

generated by the long-term equity 13564262.33

investment

Investment income of trading financial

601253.78

assets during the holding period

Dividends earned during the holding

period on investments in other equity 71249739.36 47286243.74

instrument

Other -80000.00 -91000.00

Total 181402127.67 162320728.99

132Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

41. Credit impairment losses

In RMB

Items Amount of this period Amount of last period

Impairment losses on other receivable -43681523.62

Impairment losses on account receivable -1945429.56

Total -45626953.18

Other note

42. Asset impairment loss

In RMB

Items Amount of this period Amount of last period

Total disposal gains or losses of non-

463363.89

current assets

Including: Loss on impairment of fixed

463363.89

assets

Total 463363.89

43. Non-Operation income

In RMB

The amount of non-operating

Items Amount of current period Amount of previous period gains & losses

Non-current assets are

damaged and scrapped for 237412.50

profit

Among them: Fixed assets 237412.50

Insurance claim income 967952.70 4141948.49 967952.70

Road property claim income 1126095.64 1419966.31 1126095.64

Other 54244.51 22304.35 54244.51

Total 2148292.85 5821631.65 2148292.85

44. Non-Operation expenses

In RMB

Items Amount of current period Amount of previous period Recorded in the amount of the

non-recurring gains and

losses

Non-current assets are

damaged and scrapped for 15753.62 252895.85 15753.62

profit

Road rehabilitation

176042.002624379.66176042.00

expenditure

Fine 570.97 2254.33 570.97

Other 47856.00 76129.55 47856.00

Total 240222.59 2955659.39 240222.59

45. Income tax expense

(1) Lists of income tax expense

In RMB

Items Amount of current period Amount of previous period

Current income tax expense 287619631.20 246703707.49

133Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Deferred income tax expense 81420752.61 43520805.04

Total 369040383.81 290224512.53

(2) Adjustment process of accounting profit and income tax expense

In RMB

Items Amount of current period

Total 1563218721.13

Current income tax expense accounted by tax and relevant

390804680.28

regulations

Influence of income tax before adjustment 248156.86

Influence of non taxable income -17962748.29

Impact of non-deductible costs expenses and losses 10334504.26

Effect of deductible losses from using previously unrecognized

-14384209.30

deferred income tax assets

Income tax expense 369040383.81

46.Items of Cash flow statement

（1）Other cash received from business operation

In RMB

Items Amount of current period Amount of previous period

Interest income 14000060.50 20528520.76

Unit current account 40874222.93 46907015.63

Qijiang new city south interchange

185000000.00

construction subsidy funds

Total 239874283.43 67435536.39

（2）Other cash paid related to operating activities

In RMB

Items Amount of current period Amount of previous period

Management expense 10883695.76 14342965.21

Unit current account 27999921.65 32790555.31

Total 38883617.41 47133520.52

(3)Cash receivable related to other Financing activities

In RMB

Items Amount of current period Amount of previous period

Government infrastructure investment

38470400.00

subsidies

Interest income from special borrowing 1460847.67

Total 1460847.67 38470400.00

（4）Cash paid related to other Financing activities

In RMB

Items Amount of current period Amount of previous period

Issuance fee of medium-term notes 1001869.75 1001869.75

Cash paid for the lease liabilities 7325653.27 5240644.14

Total 8327523.02 6242513.89

134Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

47. Supplement Information for cash flow statement

（1）Supplement Information for cash flow statement

In RMB

Supplement Information Amount of current Amount of previous

period period

I. Adjusting net profit to cash flow from operating activities

Net profit 1194178337.32 1061504459.99

Add：Credit loss preparation

Depreciation of fixed assets oil and gas assets and consumable biological

542423799.22479906745.78

assets

Depreciation of Use right assets 5042953.50 4910817.45

Amortization of intangible assets 12833960.75 11410277.66

Amortization of Long-term deferred expenses

Loss on disposal of fixed assets intangible assets and other long-term

-463363.89

deferred assets

Fixed assets scrap loss 15753.62 15483.35

Loss on fair value changes

Financial cost 109276885.58 123517238.10

Loss on investment -181402127.67 -162320728.99

Decrease of deferred income tax assets 82208258.88 55802962.55

Increased of deferred income tax liabilities -787506.27 -12282157.51

Decrease of inventories

Decease of operating receivables -82590730.82 -46196406.71

Increased of operating Payable 287090654.41 -72254061.48

Provision for credit losses 45626953.18

Net cash flows arising from operating activities 2013917191.70 1443551266.30

II. Significant investment and financing activities that without cash flows:

Conversion of debt into capital

Convertible corporate bonds maturing within one year

Financing of fixed assets leased

3．Movement of cash and cash equivalents：

Ending balance of cash 5274773267.75 4042994649.07

Less: Beginning balance of cash equivalents 4284688231.33 2955183190.55

Add：End balance of cash equivalents

Less: Beginning balance of cash equivalents

Net increase of cash and cash equivalent 990085036.42 1087811458.52

135Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

（2）Composition of cash and cash equivalents

In RMB

Items Balance in year-end Balance in year-Beginning

5274773267.754284688231.33

Cash

56693.1143420.71

Of which: Cash in stock

Bank savings could be used at any time 5274200451.44 4284128907.61

Other monetary capital could be used at any

516123.20515803.01

time

Balance of cash and cash equivalents at the

5274773267.754284688231.33

period end

48. The assets with the ownership or use right restricted

In RMB

Items Book value at the end of the period Restricted reason

Monetary fund Land reclamation funds in the fund1221200.00

escrow account

Total 1221200.00

VIII. Equity in other entities

1. Equity in subsidiary

(1) The structure of the enterprise group

Shareholding Ratio

Main Places of Registration Nature of Obtaining

Name of Subsidiary (%)

Operation Place Business Method

direct indirect

Under the

same

Expressway

Guangfo Expressway Co. Ltd. Guangzhou Guangzhou 75.00% control

Management

business

combination

Under the

same

Expressway

Guanghui Expressway Co. Ltd. Guangzhou Guangzhou 51.00% control

Management

business

combination

Under the

same

Jingzhu Expressway Guangzhu Expressway

Zhongshan Guangzhou 75.00% control

Section Co.Ltd. Management

business

combination

Yuegao Capital Investment

Guangzhou Guangzhou 100.00% Establishment

Investment(Guangzhou)Co. Ltd. management

Notes: holding proportion in subsidiary different from voting proportion: None

Basis of holding half or less voting rights but still been controlled investee and holding more than half of the

136Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

voting rights not been controlled investee: None

Significant structure entities and controlling basis in the scope of combination: None

Basis of determine whether the Company is the agent or the principal: None

Other note

(2) Important Non-wholly-owned Subsidiary

In RMB

Shareholding

Profit or Loss Owned by Dividends Distributed to

Ratio of Equity Balance of the

the Minority the Minority

Name of Subsidiary Minority Minority Shareholders

Shareholders in the Shareholders in the

Shareholders in the End of the Period

Current Period Current Period

(%)

Guangfo Expressway Co. Ltd. 25.00% -10159876.83 54191863.16

Guangdong Guanghui

49.00%248592282.67133205174.082090255570.22

Expressway Co. Ltd.Jingzhu Expressway Guangzhu

25.00%70101743.4988470000.47323901561.73

Section Co.Ltd.Holding proportion of minority shareholder in subsidiary different from voting proportion

None

137Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(3) The main financial information of significant not wholly owned subsidiary

In RMB

Year-end balance

Name

Current assets Non- current assets Total assets Current Liabilities Non- current liabilities Total liabilities

Guangfo Expressway Co. Ltd. 227792721.22 15224557.98 243017279.20 26249826.57 26249826.57

Guangdong Guanghui

1878332015.302744797728.054623129743.35203516148.58153785900.44357302049.02

Expressway Co. Ltd.Jingzhu Expressway Guangzhu

913861914.062932963715.033846825629.091880885837.14670333545.032551219382.17

Section Co.Ltd.In RMB

Year-beginning balance

Name

Current assets Non- current assets Total assets Current Liabilities Non- current liabilities Total liabilities

Guangfo Expressway Co. Ltd. 270445990.72 15689069.15 286135059.87 28728099.92 28728099.92

Guangdong Guanghui

1463091700.932980427023.344443518724.27242093924.47171081000.56413174925.03

Expressway Co. Ltd.Jingzhu Expressway Guangzhu

1097313535.802536899303.013634212838.812477933314.32141080251.542619013565.86

Section Co.Ltd.In RMB

Amount of current period Amount of previous period

Name Total TotalCash flows from Business Cash flows from

Business income Net profit Comprehensive Net profit Comprehensive

operating activities income operating activities

income income

Guangfo Expressway

1472953.28-40639507.32-40639507.32-2029459.2566566527.4538386003.1238386003.12200857877.57

Co. Ltd.Guangdong Guanghui

1024822529.29507331189.13507331189.13777984620.05893298497.64469177363.59469177363.59591588578.50

Expressway Co. Ltd.Jingzhu Expressway 574690822.31 280406973.97 280406973.97 495884944.24 452938785.68 193096571.04 193096571.04 271398716.46

138Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Guangzhu Section

Co.Ltd.Other note：

139Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt

None

(5) Provide financial support or other support for structure entities incorporate into the scope of

consolidated financial statements

None

2. The transaction of the Company with its owner’s equity share changed but still controlling the

subsidiary

(1) Significant joint venture arrangement or associated enterprise

None

（2）Affect of the transaction on the minority equity and owner's equity attributable to the parent

company

None

3. Equity in joint venture arrangement or associated enterprise

(1) Significant joint venture arrangement or associated enterprise

Accounting

treatment of the

Main

Registration Proportion investment of joint

Name operating Business nature venture or

place

place associated

enterprise

Directly Indirectly

Zhaoqing Yuezhao Highway Co. Zhaoqing Zhaoqing Expressway

25.00% Equity method

Ltd. Management

Guangdong Guangdong

Shenzhen Huiyan Expressway Expressway

Shenzhen Shenzhen 33.33% Equity method

Co. Ltd. Management

Guangdong Jiangzhong Expressway

Zhongshan Zhongshan 15.00% Equity method

Expressway Co. Ltd. Management

Ganzhou kangda Expressway Co. Expressway

Gangzhou Ganzhou 30.00% Equity method

Ltd. Management

Ganzhou Gankang Expressway Expressway

Gangzhou Ganzhou 30.00% Equity method

Co. Ltd. Management

Guangdong Yuepu Small Hand all kinds of

Guangzhou Guangzhou 15.48% Equity method

Refinancing Co. Ltd small loans

Guangyuan Securities Co. Ltd. Hefei Hefei Security business 2.37% Equity method

Research and

Hunan Lianzhi Technology Co.Changsha Changsha experimental 12.53% Equity method

Ltd.development

SPIC Yuetong Qiyuan Chip New Energy

Guangzhou Guangzhou 5.00% Equity method

Power Technology Co. Ltd service

Software and

Shenzhen Garage Electric Pile

Shenzhen Shenzhen Information 17.40% Equity method

Technology Co. Ltd

technology

Notes to holding proportion of joint venture or associated enterprise different from voting proportion:

None

140Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting

rights but does not have a significant impact:

Guangdong Jiangzhong Expressway Co. Ltd. Guangyuan Securities Co. Ltd.，Yuepu Small Refinancing Co.Ltd.and Hunan Lianzhi Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.and

Shenzhen Garage Electric Pile Technology Co.Ltd. holds 20% of the voting rights but has the power to participate in making decisions on their financial and o

perating decisions and therefore deemed to be able to exert significant influence over the investee.

(2) Main financial information of significant joint venture

None

(3) Main financial information of significant associated enterprise

In RMB

Year-end balance/ Amount of current Balance at the end of last year/ Amount

period of previous period

Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.Current assets

Non-current assets

Total assets 136259314336.23 130765208142.95

Current liabilities

Non-current Liabilities

Total liabilities

Minority Shareholders’ Equity

Shareholders’ equity attributable to

33709197542.7532927214909.60

shareholders of the parent

Pro rata share of the net assets calculated 799379548.17 780835620.42

Adjustment items

--Goodwill 207095632.54 207095632.54

-- Internal transactions did not achieve

profits

--Other

The book value of equity investments in j

1006475180.71987931252.96

oint ventures

Fair value of equity investment of

associated enterprises with open 674706434.64 655044744.06

quotation

Buinsess incme 3110841516.79 2474031036.38

Net profit 914347343.11 749499017.55

Net profit from terminated operations

Other comprehensive income 510710079.37 -35288230.26

Total comprehensive income 1425057422.48 714210787.29

Dividends received from associates durin

15522387.3018626864.76

g the year

141Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(4) Summary financial information of insignificant joint venture or associated enterprise

In RMB

Year-end balance/ Amount of current Year-beginning balance/ Amount of

period previous period

Joint venture：

Total amount of the pro rata calculation

of the following items

Associated enterprise：

Total book value of the investment 2061955507.51 1935437414.88

Total amount of the pro rata calculation

of the following--Net profit ms

--Net profit 87613916.46 82950868.66

--Total comprehensive income 87613916.46 82950868.66

(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer

funds to the Company

None

(6) The excess loss of joint venture or associated enterprise

None

(7) The unrecognized commitment related to joint venture investment

None

(8) Contingent liabilities related to joint venture or associated enterprise investment

None

4. Significant common operation

None

5. Equity of structure entity not including in the scope of consolidated financial statements

None

6.Other note

None

IX. Risks Related to Financial Instruments

The company has the main financial instruments such as bank deposits receivables and payables investments

loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these

financial instruments mainly include credit risk market risk and liquidity risk. The company’s management

shall manage and monitor these risks and ensure above risks to be controlled within certain scope.The targets and policies of risk management

The target of risk management is to obtain the proper balance between the risk and benefit to reduce the

negative impact that is caused by the risk of the Company to the lowest level and to maximize the benefits of

shareholders and other equity investors. Based on the targets of risk management the basic strategy of the

Company’s risk management is to identify and analyze the risks which are faced by the Company establish

suitable risk tolerance baseline and proceed the risk management and supervise a variety of risks timely and

142Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

reliably and control the risks within a limited range.

1.Market risk

（1）Foreign exchange risk

Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations generally. Our foreign

exchange risk is mainly related to Hong Kong Dollar. Besides annual distribution of B-share shareholder

dividends other major business activities of our Company are settled in RMB. During the reporting period due to

the short credit period of the Company's income and expenditure related to foreign currency it was not affected

by foreign exchange risk.

（2）Interest rate risk

The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainly

related to floating rate bank borrowings. The Company's policy is to maintain the floating interest rate of these

borrowings and at the same time to reasonably reduce the risk of interest rate fluctuation by shortening the term

of a single loan and specifically agreeing on prepayment terms.

（3）Other price risk

The investments held by the Company are classified as financial assets measured at fair value and whose

changes are included in other comprehensive income and are measured at fair value on the balance sheet date.Therefore the Company bears the risk of changes in the securities market.

2.Credit risk

As of June 302023 the largest credit risk exposure that may cause financial losses of the Company mainly

comes from the loss of financial assets of the Company caused by the failure of the other party to perform its

obligations.In order to reduce credit risk the Company only deals with recognized and reputable customers. In addition

the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequate

bad debt provisions are made for unrecoverable amounts. Consequently the Company's management believes that

the Company's credit risk has been greatly reduced.The Group's working capital is deposited in banks with higher credit rating so the credit risk of working

capital is relatively low.Financial assets overdue or impaired;

(1) Aging analysis of financial assets with overdue impairment: Not existed

(2) Analysis of financial assets that have suffered single impairment: Refer to "4 Other Receivables" in VII

and "7 Investment in Other Equity Instruments" in VII of this section for details.

3.Liquidity risk

When managing liquidity risks the Company maintains sufficient cash and cash equivalents as deemed by

the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow

fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the

loan agreement.X. The disclosure of the fair value

1. Closing fair value of assets and liabilities calculated by fair value

In RMB

143Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Closing fair value

Items Fir value measurement Fir value measurement Fir value measurement

Total

items at level 1 items at level 2 items at level 3

I. Consistent fair value

--------

measurement

(I) Trading financial assets 181400000.00 181400000.00

（2）Equity instrument

181400000.00181400000.00

investment（II）Other equity 722232678.08 830410809.82 1552643487.90

instrument investment

Total assets continuously

722232678.081011810809.821734043487.90

measured at fair value

II. Non –persistent measure -- -- -- --

2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.

As at the end of the period the company holds shares 235254944 shares of China Everbright Bank

According to the closing price of June 302023 of 3.07 yuan the final calculation of fair value was

722232678.08 yuan.

3. Fair value of financial assets and liabilities not measured at fair value The valuation techniques

adopted and the qualitative and quantitative information of important parameters for continuous and

non-continuous level 3 fair value measurement items

Items Fair value as of June 302032 Valuation technology Unobservable input value

Hire a third party for evaluation or enjoy the

Unlisted equity

1011810809.82 share of the net book assets of the investee based

investment

on the shareholding ratio

4. Fair value of financial assets and liabilities not measured at fair value

The Company's financial assets and liabilities measured in amortized cost mainly include: accounts

receivable other receivables contract assets short-term loans accounts payable other payables non-current

liabilities due within one year long-term loans bonds payable and long-term payables.There is no significant difference between the book value of financial assets and liabilities not measured at

fair value and the fair value.XI. Related parties and related-party transactions

1. Parent company information of the enterprise

The parent The parent

Redistricted company of the company of the

Name Registered address Nature

capital Company's Company’s vote

shareholding ratio ratio

Equity

management

Guangdong

traffic

communication Guangzhou 26.8 billion yuan 24.56% 50.12%

infrastructure

Group Co. Ltd

construction and

railway project

144Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

operation

Notes ：

Guangdong Communication Group Co. Ltd. is the largest shareholder of the Company. legal representative:

Deng Xiaohua. Date of establishment: June 23 2000. As of June 30 2023Registered capital: 26.8 billion yuan.It is a solely state-owned limited company. Business scope ： equity management organization of asset

reorganization and optimized allocation raising funds by means including mortgage transfer of property rights

and joint stock system transformation project investment operation and management traffic infrastructure

construction highway and railway project operation and relevant industries technological development

application consultation and services highway and railway passenger and cargo transport ship industry

relevant overseas businesses; The value-added communication business.The finial control of the Company was State owned assets supervision and Administration Commission of

Guangdong Provincial People's Government.

2.Subsidiaries of the Company

Subsidiaries of this enterprise see VIII(1) the rights of other entity

3. Information on the joint ventures and associated enterprises of the Company

Details refer to the VI-3 Interests in joint ventures or associates

Information on other joint venture and associated enterprise of occurring related party transactions with the

Company in reporting period or form balance due to related party transactions in previous period:

Name Relation with the Company

Shenzhen Huiyan Expressway Co. Ltd. Associated enterprises of the Company

Zhaoqing Yuezhao Highway Co. Ltd. Associated enterprises of the Company

Ganzhou Kangda Expressway Co. Ltd. Associated enterprises of the Company

Ganzhou Gankang Expressway Co. Ltd. Associated enterprises of the Company

Guangdong Jiangzhong Expressway Co. Ltd. Associated enterprises of the Company

4. Other Related parties

Name Relation with the Company

Guangdong East Thinking Management Technology

Fully owned subsidiary of the parent company

Development Co. Ltd.Guangdong Expressway Media Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Expressway Technology Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Humen Bridge Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Hualu Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Communications Testing Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Litong Development Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Litong Technology Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Litong Property Investment Co. Ltd. Fully owned subsidiary of the parent company

145Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Guangdong Union Electron Service Information technology

Fully owned subsidiary of the parent company

Co. ltd.Guangdong Lulutong Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Luoyang Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Provincial Freeway Co.Ltd. Fully owned subsidiary of the parent company

Guangdong Highway Construction Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Communication Group Finance Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Tongyi Expressway Service Area Co. Ltd Fully owned subsidiary of the parent company

Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Yueyun Traffic Rescue Co. Ltd. Fully owned subsidiary of the parent company

Guangzhou Xinyue Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company

Guangzhou Xinyue Asphalt Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Traffic Development Co. Ltd. Fully owned subsidiary of the parent company

Poly Changda Engineering Co. Ltd. Shares of parent company

Guangdong Communication Planning & Design Institute Co.Shares of parent company

Ltd.Guangdong Changda Road Conservation Co. Ltd. Shares of parent company

Guangzhou Aitesi Communication equipment Co. Ltd. Associated enterprises controlled by the same parent company

Guangdong Jingzhu Expressway Guangzhu North Section Co.Associated enterprises controlled by the same parent company

Ltd.Guangdong Feida Traffic Engineering Co. Ltd. Associated enterprises controlled by the same parent company

Guangdong Road Network Digital Media Information

Fully owned subsidiary of the parent company

Technology Co. Ltd

Hunan Lianzhi Technology Co. Ltd. A wholly owned subsidiary of the Company

Guangzhongjiang Expressway Project Management Dept Managed by the parent company

5. List of related-party transactions

(1)Information on acquisition of goods and reception of labor service

Acquisition of goods and reception of labor service

In RMB

Amount of Amount of Over the

Content of related Amount of last

Related parties current period previous trading limit

transaction period

period or not

1. Operating costs

Guangdong Union electronic

Service 13229622.13 12021733.95

services co. Ltd.Guangdong Yueyun Traffic

Rescue service fee 1803701.00 494700.00

Rescue Co. Ltd.Daily maintenance fee of

Guangdong Xinyue Traffic

the electromechanical 1767361.32

Investment Co. Ltd.system

Guangdong Litong

Remote monitoring and

Technology Investment Co. 499250.40

technical support service fee

Ltd.Guangdong Humen Bridge

Electric charge 330692.01 310411.02

Co. Ltd.

146Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Amount of Amount of Over the

Content of related Amount of last

Related parties current period previous trading limit

transaction period

period or not

Guangdong Hualu Traffic

Service 306348.00

Technology Co. Ltd.Poly Changda Engineering

service 242574.00 11772757.00

Co. Ltd.Guangdong Tongyi

Expressway Service Area Co. Labour protection 176962.71 40808.70

Ltd

Guangdong Feida Traffic Mechanical and electrical

2003201.04

Engineering Co. Ltd. daily maintenance payment

Guangdong Communication

Planning & Design Institute Project 178243.00

Co. Ltd.Guangdong Lulutong Co. Ltd. Maintenance Project funds 52598.00

Guangdong Jingzhu

Expressway Guangzhu North Labour protection 8551.20

Section Co. Ltd.Guangzhou Aitesi

Maintenance of charging

Communication Equipment 2400.00

facilities

Co. Ltd.Subtotal of operating costs 18356511.57 26885403.91

2. Financial expenses

Guangdong Communication

Deposit interest income -9965887.73 -24475843.25

Group Finance Co. Ltd.Guangdong Communication Borrowing Interest

6590997.215112347.24

Group Finance Co. Ltd. expresses

Guangdong Communication

Commission charge 3785.00 920.00

Group Finance Co. Ltd.Guangdong Communication

Interest 7402083.32

Group Co. Ltd.Subtotal of Financial expenses 4030977.80 -19362576.01

3. Administrative expenses

Guangdong Tongyi

Expressway Service Area Co. Labour protection 74591.29

Ltd

Guangdong Union electronic

maintenance fee 288500.00

services co. Ltd.Guangdong East Thinking

Management Technology OA Maintenance，Service 10000.00Development Co. Ltd.Subtotal of management

74591.29298500.00

expenses

4. Non operating expenses

Expenditure for repairing

Poly Changda Engineering

damaged civil engineering 1.00 1009397.00

Co. Ltd.facilities

Subtotal of Non operating

1.001009397.00

expenses

147Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Amount of Amount of Over the

Content of related Amount of last

Related parties current period previous trading limit

transaction period

period or not

5. Construction in progress

Guangdong Communication

Planning & Design Institute Purchase assets 5422739.00 5973981.00

Co. Ltd.Guangdong Communications Purchase assets 2028475.00

Testing Co. Ltd.Guangdong Highway Purchase assets 480000.00 9089990.48

Construction Co. Ltd.Poly Changda Engineering Purchase assets 26630344.47

Co. Ltd.Guangdong Xinyue Traffic

Purchase assets 6127813.56

Investment Co. Ltd.Guangdong Hualu Traffic

Purchase assets 907894.50

Technology Co. Ltd.Subtotal of Construction in

7931214.0048730024.01

progress

6. Fixed assets

Guangdong Expressway

Technology Investment Co. Purchase assets 82895.00

Ltd.Guangdong Communication

Planning & Design Institute Purchase assets 483543.00

Co. Ltd.Subtotal of Fixed assets 566438.00

7. Other current assets

Guangdong Feida Traffic

Contract acquisition cost 182274.01

Engineering Co. Ltd.Subtotal of Other current

182274.01

assets

Related transactions on sale goods and receiving services

In RMB

Related party Content

Amount of current period Amount of previous period

Operating income

Jingzhu Expressway Guangzhu North Commission

10977500.0010603632.04

section Co. Ltd. management fee

Salaries of expatriate

Zhaoqing Yuezhao Highway Co. Ltd. 613816.63 512977.97

staff

Salaries of expatriate

Ganzhou Gankang Expressway Co. Ltd. 578774.80 525660.83

staff

Guangdong Traffic Development Co. Ltd. electricity 486046.23 336290.97

Guangdong Tongyi Expressway Service

water and electricity 479678.14 486716.96

Area Co. Ltd

Salaries of expatriate

Shenzhen Huiyan Expressway Co. Ltd. 464466.28 260849.89

staff

Ganzhou Kangda Expressway Co. Ltd. Salaries of expatriate 142237.06 138547.02

148Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

staff

Guangdong Jiangzhong Expressway Co. Salaries of expatriate

168312.27176119.41

Ltd. staff

Bidding documents

Poly Changda Engineering Co. Ltd. income water and 21011.51 1000.00

electricity bills

Guangdong Yueyun Traffic Rescue Co.Water and electricity 5770.73

Ltd.Guangdong Expressway Media Co. Ltd. Water and electricity 4637.51

Guangdong Provincial Freeway Co.Ltd. Project fund 886950.00

Guangdong Luoyang Expressway Co. Ltd. Test 58490.57

Subtotal of Operating income 13942251.16 13987235.66

(2) Information of related lease

The Company was lessor：

In RMB

Category of lease The lease income confirmed in The lease income confirmed in

Name of lessee

assets this year last year

Guangdong Expressway Media Co. Advertising lease

1292283.511379412.57

Ltd.Guangdong Litong Technology Communication

1067169.99522034.27

Investment Co. Ltd. Piping

Poly Changda Engineering Co. Ltd. Rental income 555557.14 555557.14

Guangdong Expressway Advertising lease

543695.69

Technology Co. Ltd.Guangdong Traffic Development Rental income of

267958.87149850.34

Co. Ltd. charging pile

Guangdong Road Network Digital

Media Information Technology Co. Advertising 2777.78

Ltd.

149Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

- The company was lessee：

In RMB

Variable lease payments

Rental charges for short-

not included in lease Interest expenses on lease

term and low-value assets Rent paid Increased use right assets

liabilities measurement (if liabilities assumed

(if any)

any)

Category of

Lessor Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount of Amount

leased assets

current previous current previous current period previous current previous current period of

period period period period period period period previous

period

Guangdong

Litong

Office space

Decelopment 5065766.04 4798232.52 276207.92 223498.78 30404063.26

Investment Co.Ltd

Guangdong

Litong Property Office space

18093.0027586.0015732.001490.55230671.46

Development

Co. Ltd.

150Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

(3 ）Rewards for the key management personnel

In RMB

Items

Amount of current period Amount of previous period

Rewards for the key management

2969700.002834900.00

personnel

（4） Transactions with associated financial companies

（1）Deposit business

Related party Relationship Maximum Deposit Beginning The amount of this perioddaily deposit interest rate balance（10，Total amount Total amount Ending

limit（10， range 000）

for this period is withdrawn balance

000）

（10000） for this period （10，000)

（10000）

Guangdong

Controlled by the

Communications

same parent 300000.00 0.35%-2.85% 239396.61 298189.83 254255.77 283330.67

Group Finance

company

Co. Ltd

（2）Loan business

Related party Relationship Beginning The amount of this period

balance

Total loan Total EndingLoan limit

Loant interest （10，000）

（10， amount of the repaymentbalance

rate range

000） current period amount of the

（10，

（10000） current period 000）

（10000）

Guangdong

Communications Controlled by the

400000.002.95%-3.40%62859.33659.1043797.1319721.30

Group Finance same parent company

Co. Ltd

（3）Credit extension or other financial servicesRelated party Relationship Business type Total amount（10， Actual amount000） incurred（10，000)Guangdong Communications Controlled by the same Credit extension

220000.0019700.00

Group Finance Co. Ltd parent company

The Company respectively signed the "Cash Management Business Cooperation Agreement" with

Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial

Bank of China on December 25 2017; and signed the "Cash Management Business Cooperation Agreement" with

Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial

Bank of China on December 22 2017 respectively joined the cash pool of Guangdong Communications Group

Finance Co. Ltd.Guangdong Guanghui Expressway Co. Ltd respectively signed the "Cash Management Business

Cooperation Agreement" with Guangdong Communications Group Finance Co. Ltd and Agricultural Bank of

China Co. Ltd Guangdong Branch on May 19 2020 joined the cash pool of Guangdong Communications Group

151Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Finance Co. Ltd.

（5）Asset transfer and debt restructuring of related parties

None

(6) Other related-party transactions

-On June 15 2016The company’s 29th meeting (Provisional) of the seventh board of directors was

convened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project

of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting

agreed that Guangdong Provincial Fokai Expressway Co. Ltd entrusts Guangdong Provincial Highway

Construction Co. Ltd with the construction management of the renovation and expansion project of Sanbao-to-

Shuikou Section of Shengyang-to-Haikou National Expressway and handling the related matters of the

entrustment of the construction management. The above transactions have been approved and implemented by

the board of directors of Guangdong Fokai Expressway Co. Ltd.On March 25 2021 the Sixteenth Meeting of the Ninth Board of Directors of the Company held and

reviewed the Proposal on the Company's Estimated Daily Related Party Transactions in 2021. It is estimated

that the daily related party transactions include the Agreement on the Entrusted Management of the Preliminary

Work of the Reconstruction and Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao

Expressway signed by Beijing-Zhuhai Expressway Guangzhou-Zhuhai Section Co. Ltd. and Guangdong

Highway Construction Co. Ltd. in which the latter is responsible for the main management responsibilities and

all the preliminary work before the approval of the reconstruction and expansion project. The above transactions

have been approved and implemented by the board of directors of Beijing-Zhuhai Expressway Guangzhou-

Zhuhai Section Co. Ltd.On November 30 2022 the fifth (interim) meeting of the 10th Board of Directors of the Company

reviewed and approved the Proposal on Entrusted Construction Management of the Reconstruction and

Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway and agreed that the subsidiary

Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway Co. Ltd. entrusted Guangdong Provincial Highway

Construction Co. Ltd. to carry out the whole-process construction management of the reconstruction and

expansion project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway. The above transactions have

been approved and implemented by the Board of Directors of Guangzhu Section of Beijing-Zhuhai Expressway

Co. Ltd The above transactions have been approved and implemented by the board of directors of Beijing-

Zhuhai Expressway Guangzhou-Zhuhai Section Co. Ltd.

6. Receivables and payables of related parties

（1）Receivables

In RMB

Amount at year end Amount at year beginning

Name Related party Balance of Bad debt Bad debt

Balance of Book

Book Provision Provision

Account Guangdong Union electron Service Co.

68965060.8467197924.19

receivable Ltd.Account Guangdong Humen Bridge Co. Ltd. 16631182.47 6072995.36

152Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

receivable

Account Jingzhu Expressway Guangzhu North

5818074.998321625.03

receivable Section Co. Ltd.Account Guangdong Litong Technology

533136.00

receivable Investment Co. Ltd.Account Guangdong Expressway Technology

126986.702315719.18

receivable Investment Co. Ltd.Account Guangdong Expressway Media Co.

522805.00

receivable Ltd.Account

Poly Changda Engineering Co. Ltd. 265054.16

receivable

Total 92074441.00 84696122.92

Other Account Guangdong Litong Technology

1839246.941653447.36

receivable Investment Co. Ltd.Other Account Guangdong Expressway Media Co.

695223.54978997.66

receivable Ltd.Other Account Guangdong Provincial Freeway

463491.88463491.88

receivable Co.Ltd.Other Account Guangdong Expressway Technology

318319.0065605.71

receivable Investment Co. Ltd.Other Account Guangdong Traffic Development Co.

183157.04

receivable Ltd.Other Account Guangdong Union electron Service Co.

147018.71137851.04

receivable Ltd.Other Account Guangdong Litong Property

25475.0018344.00

receivable Develpment Co. Ltd.Other Account

Guangdong Humen Bridge Co. Ltd. 15000.00

receivable

Other Account

Poly Changda Engineering Co. Ltd. 6657.71

receivable

Other Account Guangdong Yueyun Traffic Rescue

3897.19

receivable Co. Ltd.Total 3697487.01 3317737.65

Other Non-Current

Poly Changda Engineering Co. Ltd. 48226078.70

Assets

Other Non-Current Guangdong Xinyue Traffic Investment

834973.80

Assets Co. Ltd.Other Non-Current Guangdong Traffic Development Co.

333398.00333398.00

Assets Ltd.Total 49394450.50 333398.00

（2）Payables

In RMB

Amount at year Amount at year

Name Related party end beginning

Short-term loan Guangdong Communication Group Finance Co. ltd. 430387597.20

Total 430387597.20

153Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Amount at year Amount at year

Name Related party end beginning

Guangzhongjiang Expressway Project Management

Account payable 17466700.00 17466700.00

Dept

Account payable Poly Changda Engineering Co. Ltd. 5415553.30 12590171.30

Account payable Guangdong Xinyue Traffic Investment Co. Ltd 3498917.77 6381639.70

Account payable Guangdong Union Electron Service Co.Ltd. 2818047.86 188039.97

Account payable Guangdong Communications Testing Co. Ltd. 2023485.00 2400079.00

Account payable Guangdong Yueyun Traffic Rescue Co. Ltd. 1407941.00 261800.00

Account payable Guangdong Provincial Freeway Co.Ltd. 1245443.50 1245443.50

Account payable Guangdong Expressway Technology Investment 980578.00 6935455.12

Co. Ltd.Account payable Guangdong Feida Traffic Engineering Co. Ltd. 774876.84 3716816.94

Account payable Guangdong Communication Planning & Design 585379.10 3008670.10

Institute Co. Ltd.Account payable Guangdong Hualu Traffic Technology Co. Ltd. 466616.91 1769785.29

Account payable Guangdong Litong Technology Investment Co. 335569.11 843562.91

Ltd.Account payable Guangdong Changda Road Maintenance Co. Ltd. 231869.00 231869.00

Guangdong East Thinking Management Technology

Account payable 86630.00 950630.00

Development Co. Ltd.Account payable Guangzhou Xinyue Asphalt Co. Ltd. 46779.00 46779.00

Account payable Guangdong Lulutong Co. Ltd. 3787627.94

Account payable Hunan Lianzhi Technology Co. Ltd. 640088.00

Account payable Guangzhou Aitesi Communication Equipment Co. 25194.00

Ltd.Total 37384386.39 62490351.77

Advance received Guangdong Union electronic services co. Ltd. 1417034.63 1330729.13

Total 1417034.63 1330729.13

Dividend payable Guangdong Provincial Freeway Co.Ltd. 11550000.00

Total 11550000.00

Other Payable account Poly Changda Engineering Co. Ltd. 21556770.48 20866108.48

Other Payable account Guangdong Hualu Traffic Technology Co. Ltd. 2874595.06 1905833.06

Other Payable account Guangdong Highway Construction Co. Ltd. 2137605.14 2000000.00

Other Payable account Guangdong Expressway Technology Investment 1687217.46 2298424.75

Co. Ltd.Other Payable account Guangdong Changda Road Maintenance Co. Ltd. 1628345.00 1628345.00

Other Payable account Guangdong Xinyue Traffic Investment Co. Ltd. 1503467.33 1415273.20

Other Payable account Guangdong Feida Traffic Engineering Co. Ltd. 1436828.89 1522615.96

Other Payable account Guangdong Xinyue Traffic Investment Co. Ltd. 1415273.20 1332556.89

Other Payable account Guangdong Union Electron Service Co.Ltd. 1355836.70

Other Payable account Guangzhou Xinyue Asphalt Co. Ltd. 1054919.00 1054919.00

Other Payable account Guangdong Lulutong Co. Ltd. 809377.06 859377.06

Other Payable account Guangdong Communications Testing Co. Ltd. 238186.00 971085.90

Other Payable account Guangzhongjiang Expressway Project Management 200000.00 200000.00

Dept

Other Payable account Guangdong Tongyi Expressway Service Area Co. 120000.00 120000.00

Ltd.

154Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Amount at year Amount at year

Name Related party end beginning

Other Payable account Guangdong Communication Planning & Design 110422.00 110422.00

Institute Co. Ltd.Other Payable account Guangdong Litong Technology Investment Co. 92594.24 92594.24

Ltd.Other Payable account Guangdong Expressway Media Co. Ltd. 50000.00 50000.00

Other Payable account Guangdong East Thinking Management Technology 26568.18 156534.54

Development Co. Ltd.Other Payable account Hunan Lianzhi Technology Co. Ltd. 19797.00 85785.50

Other Payable account Guangdong Yueyun Traffic Rescue Co. Ltd. 2000.00 2000.00

Total 38319802.74 36671875.58

Non-current liabilities due 1 Guangdong Litong Development Investment Co.

9648206.792445724.55

year Ltd.Non-current liabilities due 1

Guangdong Communication Group Finance Co. ltd. 2213033.33 2205700.01

year

Non-current liabilities due 1

Guangdong Litong Property Development Co. Ltd. 100708.20

year

Total 11961948.32 4651424.56

Other current liabilities Guangdong Communication Group Co. ltd. 500395833.33 500122916.67

Total 500395833.33 500122916.67

Guangdong Litong Development Investment Co.Lease Liabilities 18412022.93

Ltd.Lease Liabilities Guangdong Litong Property Development Co. Ltd. 115721.81

Total 18527744.74

Long-term loans Guangdong Communication Group Finance Co. ltd. 195000000.00 196000000.00

Total 195000000.00 196000000.00

7. Related party commitment

None

XII. Stock payment

1. The Stock payment overall situation

□ Applicable √ Not applicable

2. The Stock payment settled by equity

□ Applicable √ Not applicable

3. The Stock payment settled by cash

□ Applicable √ Not applicable

XIII. Commitments

1. Significant commitments

Significant commitments at balance sheet date

Significant commitments The Company held the second (interim) meeting of the 10th Board of Directors

on October 22 2022. The meeting deliberated and passed the Proposal on Investing in the Reconstruction and

Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway with Capital Increase from

155Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Guangzhou-Zhuhai Section Co. Ltd. of Beijing-Zhuhai Expressway and agreed that the company would

invest in the construction of the Reconstruction and Expansion Project of Nansha-Zhuhai Section of

Guangzhou-Macao Expressway with Capital Increase from Guangzhou-Zhuhai Section Co. Ltd. of Beijing-

Zhuhai Expressway based on the estimated investment amount of 15.425 billion yuan approved by Guangdong

Provincial Development and Reform Commission.The project capital is 35% of the estimated investment amount after deducting the expenses borne by the

government and the company undertakes the capital contribution of about 3.414 billion yuan according to the

shareholding ratio. This matter has been reviewed and approved by the Company's third extraordinary general

meeting in 2022.As of June 30 2023 the accumulated cost of the reconstruction and expansion project of Nansha- Zhuhai

section of Guangzhou-Macao Expressway was 1021162978.77 yuan

2. Contingency

(1) Significant contingency at balance sheet date

As of June 302023 the Company did not need to disclose important commitments.

(2) The Company have no significant contingency to disclose also should be stated

None

XIV. Events after balance sheet date

None

XV.Other significant events

1. Segment information

The company's business for the Guangfo Expressway the Fokai Expressway Guanghui Expressway and

Jingzhu Expressway Guangzhu Section toll collection and maintenance work the technology industry and

provide investment advice no other nature of the business no reportable segment.

156Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

2.Government Subsidy

(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method

In RMB

Subsidy item Category Opening New subsidy amountThe carry-over in currentOther Closing Presentation items carriedAsset-

balance in current period period is included in profit changes balance over into profit or loss in related/revenue-

and loss amount the current period related

Cancel the special subsidy for theFinancial Other income

expressway provincial toll stationappropriation 20931143.87 5023474.62 15907669.25 Assets related

project

Qijiang new city south interchange Financial

185000000.00 185000000.00 Other income Assets related

construction Project appropriation

Charging infrastructure incentive Financial

78068.83 5576.34 72492.49 Other income Assets related

funds appropriation

(2) Government subsidies included in current profits and losses using the total amount method

In RMB

Subsidy item Category Amount included in profit or lossPresentation items included inAsset-related/revenue-

in the current period profit or loss in the current related

period

Subsidy for post stabilization Financial appropriation 25500.00 Other income Income related

Jiujiang Bridge structure health monitoring system optimization and

Financial appropriation 600000.00 Other income Income related

upgrade of vehicle purchase tax subsidy funds

157Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

3.Other important transactions and events have an impact on investors decision-making

(1) Performance compensation

The net profit of Guangzhou-Huizhou Company (excluding non-recurring gains and losses) in 2020 was

RMB 769232600 RMB 116755100 more than the promised amount; the net profit of Guangzhou-Huizhou

Company (excluding non-recurring gains and losses) in 2021 was RMB 1105444400 RMB 7142900 less

than the promised amount; the net profit of Guangzhou-Huizhou Company (excluding non-recurring gains and

losses) in 2022 was RMB 8961019OO RMB 338099000 less than the promised amount by the end of 2022 the

accumulated net profit (excluding non-recurring gains and losses) was RMB 2770778900 RMB 228486800

more than the promised amount.In 2022 affected by the macroeconomic impact and in response to the State Council's 10% reduction in

truck tollsin toll roads in the fourth quarter of 2022 Guanghui Expressway toll revenue fell sharply. According

to the "Profit Compensation Agreement" signed between the Company and the Provincial Expressway

combined with the actual situation of the performance of Guanghui Expressway the Company negotiated

matters related to the performance commitment with the Provincial Expressway and the contingent

consideration formed by the performance compensation was not recognized in 2022.On August 72023The "Proposal on Changing the Performance Commitment of Major Asset

Restructuring Project in 2020 and Sinning the Supplementary Agreement to the Profit Compensation

Agreement " was deliberated and adopted in the 10thmeeting (interim) of the 10th Board of Directors of the

Company agreeing to change the performance commitment of major asset restructuring project in 2020 and

the performance compensation period of the restructuring is adjusted to 2020 2021 and 2023 and the

Provincial Expressway promises that the net profit accumulated by Guanghui Expressway in the three years of

2020 2021 and 2023 after deducting non-recurring profits and losses shall not be less than 2999265700 yuan.

If the cumulative net profit of Guanghui Company does not reach the afore-said cumulative committed net

profit within the afore-said adjusted compensation period the Provincial Expressway shall compensate the

Company in cash in accordance with the "Profit Compensation Agreement" and the provisions of this

agreement.The above-mentioned change to performance commitments need to be reviewed and approved by the

company at its first (extraordinary) general meeting of shareholders on August 23 2023.

(2) Follow-up management and maintenance issues after the expiration of the Guangzhou-Foshan

Expressway operation

The Company received the Notice of the Guangdong Provincial Department of Transport on Matters

Related to the Disposal of the Guangfo Expressway Toll Period (No. 24 [2022] Yue Jiaoying Memorandum)

and the Guangfo Expressway operated by its holding subsidiary Guangfo Expressway Co. Ltd (hereinafter

referred to as "Guangfo Company") stopped collecting tolls from midnight on March 3 2022. It retains the

existing toll facilities to operate as usual in a zero-rate manner exempts all vehicle tolls for vehicles passing

through this section of the road and collects vehicle tolls for other road sections on their behalf. After the toll

collection is stopped the Guangfo Company will continue to be responsible for the management and

maintenance of the Guangfo Expressway.

158Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

The source of funds for management and maintenance expenses paid by Guangfo on behalf of remains to

be further clarified and as of June 302023 the management and maintenance expenses paid by Guangfo

Company on behalf of is 141431005.33 yuan.

159Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

XVI..Notes of main items in financial reports of parent company

1. Account receivable

1.Classification account receivables.

In RMB

Amount in year-end Balance Year-beginning

Book Balance Bad debt provision Book Balance Bad debt provision

Category

Amount Proporti Amou Proportio Book value Amount Proportio Amoun Proportion( Book value

on(%) nt n(%) n(%) t %)

Accrual of bad debt provision by

Single

Accrual of bad debt provision by 100.00

21127358.7321127358.7323817016.30100.00%23817016.30

portfolio %

Of which：

100.00

Aging portfolio 21127358.73 21127358.73 23817016.30 100.00% 23817016.30

%

Other

Total 21127358.73 21127358.73 23817016.30 23817016.30

160Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Accrual of bad debt provision by Single :None

Accrual of bad debt provision by portfolio: Accounts receivables with bad debt provision are recognised by

portfolio by age

In RMB

Balance in year-end

Aging

Account receivable Bad debt provision Expected credit loss rate(%)

Within 1 year 21127358.73

Total 21127358.73

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of

other receivables if the provision for bad debts of bills receivable is accrued according to the general model of

expected credit loss:

□ Applicable √ Not applicable

Disclosure by aging

In RMB

Aging Book balance

Within 1 year（Including 1 year） 21127358.73

Total 21127358.73

(2) Accounts receivable withdraw reversed or collected during the reporting period

None

（3）The current accounts receivable write-offs situation

None

（4）The ending balance of other receivables owed by the imputation of the top five parties

In RMB

Name Amount Proportion(%) Bad debt provision

Guangdong Union Electronic

21000372.0399.40%

Services Co. Ltd.Guangdong Expressway

126986.700.60%

Technology Investment Co. Ltd.Total 21127358.73 100.00%

（5）Account receivable which terminate the recognition owning to the transfer of the financial assets

None

(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of

accounts receivable

None

2.Other receivable

In RMB

Items Year-end balance Year-beginning balance

Dividend receivable 45903912.26 36905472.90

161Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Other receivable 1240260547.94 1505117198.28

Total 1286164460.20 1542022671.18

（1）Interest receivable：

None

（2）Dividend receivable

1)Dividend receivable

In RMB

Items Balance in year-end Balance Year-beginning

Guangdong Radio and Television Networks investment

1205472.901205472.90

No.1 Limited partnership enterprise

China Everbright Bank Co. Ltd. 44698439.36

Guangdong Guanghui Expressway Co. Ltd. 35700000.00

Total 45903912.26 36905472.90

2）Significant dividend receivable aged over 1 year

I n RMB

Whether or not the

Balance in

Items) Aging Reasons for non-recovery impairment and the basis

year-end

for its determination

The partnership agreement

Guangdong Radio and Television

expires and can be recovered No it can be recovered

Networks investment No.1 Limited 4-51205472.90

years after the extension procedures in the future

partnership enterprise

are completed

Total 1205472.90

3）The withdrawal amount of the bad debt provision

□ Applicable √ Not applicable

162Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

（3） Other accounts receivable

1) Other accounts receivable classified by the nature of accounts

In RMB

Balance in year-end Balance Year-beginning

Book balance Bad debt provision Book balance Bad debt provision

Category

Proportion Proportion Book value Proportion Proportion Book value

Amount Amount Amount Amount

(%)(%)(%)(%)

Other receivables

for individual bad 30844110.43 2.43 30844110.43 100.00 30844110.43 2.01 30844110.43 100.00

debt provision

Other receivables

for bad debt

provision according

1240260547.9497.571240260547.941505117198.2897.991505117198.28

to the combination

of credit risk

characteristics

Including: Aging

portfolio

Other 1240260547.94 97.57 1240260547.94 1505117198.28 97.99 1505117198.28

Total 1271104658.37 100.00 30844110.43 — 1240260547.94 1535961308.71 100.00 30844110.43 — 1505117198.28

163Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Accrual of bad debt provision by single：

In RMB

Closing book balance

Expected credit loss

Bad Debt Reserves Book balance Bad debt provision Reason

rate(%)

Kunlun Securities Co. Bad debts were

30844110.43 30844110.43 100.00 withdrawn in full in

Ltd bankruptcy

Total 30844110.43 30844110.43 / /

In the portfolio Disclosure by aging: None

In the portfolio other receivables with bad debt provision by other methods:

Name Balance in year-end Balance Year-beginning

Deposit money and quality guarantee 2412546.94 2090516.36

fund combination

Petty cash 1458213.38 1293602.05

Other 1236389787.62 1501733079.87

Subtotal 1240260547.94 1505117198.28

Less：Bad debt provision

Total 1240260547.94 1505117198.28

2）The withdrawal amount of the bad debt provision：

In RMB

Stage 1 Stage 2 Stage 3

Expected credit losses

Bad Debt Reserves Expected credit Expected credit loss for the entire duration Total

losses over the next over life (no credit

(credit impairment

12 months impairment)

occurred)

Balance as at January

30844110.4330844110.43

12023

Balance as at January

12023

Balance as at June

30844110.4330844110.43

302023

Loss provision changes in current period change in book balance with significant amount

□Applicable √ Not applicable

3） Accounts receivable withdraw reversed or collected during the reporting period

None

4）The actual write-off other accounts receivable: None

5)Other receivables are classified according to the nature

In RMB

Nature Closing book balance Opening book balance

Securities trading settlement funds 30844110.43 30844110.43

Deposit 2412546.94 2090516.36

Petty cash 1458213.38 1293602.05

Other 1236389787.62 1501733079.87

164Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Subtotal 1271104658.37 1535961308.71

Less：Bad debt provision 30844110.43 30844110.43

Total 1240260547.94 1505117198.28

6) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party

In RMB

Proportion of the

total year end Closing balance

Name Nature Closing balance Aging balance of the of bad debt

accounts provision

receivable(%)

Jingzhu

Expressway Reconstruction and expansion of Within

1235277549.5797.18%

Guangzhu investment funds and interest 1 year

Section Co. Ltd.Kunlun

Securities Securities trading settlement funds Over 530844110.43 2.43% 30844110.43

years

Co.Ltd

Guangdong

Litong

Within

Development Lease deposit 1816266.94 0.14%

1 year

Investment Co.Ltd

Guangdong

Litong

Development Vehicle parking deposit 22980.00 0.00%

years

Investment Co.Ltd.Guangdong

Provincial Over 5

Entrusted management fee 463491.88 0.04%

Freeway years

Co.Ltd.Water and electricity fee working

Savills Property 2-3

capital management fee deposit 4200.00 0.00%

Consulting years

vehicle parking space deposit

Water and electricity fee working

Savills Property 3-4

capital management fee deposit 414525.00 0.03%

Consulting years

vehicle parking space deposit

Total 1268843123.82 99.82% 30844110.43

7） Accounts receivable involved with government subsidies

None

8) Other account receivable which terminate the recognition owning to the transfer of the financial assets

None

9) The amount of the assets and liabilities formed by the transfer and the continues involvement of other

accounts receivable

None

165Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

3. Long-term equity investment

In RMB

End of term Beginning of term

Items

Book Balance Impairment provision Book value Book Balance Impairment provision Book value

Investment in subsidiaries 3692740464.84 3692740464.84 3374330463.43 3374330463.43

Investment in joint ventures

2867753731.352867753731.352722085180.532722085180.53

and associates

Total 6560494196.19 6560494196.19 6096415643.96 6096415643.96

（1）Investment to the subsidiary

In RMB

Increase /decrease in reporting period

Withdrawn Closing balance of

Name Opening balance Decreased Closing balance

Add investment impairment Other impairment provision

investment

provision

Jingzhu Expressway Guangzhu Section

871171883.08265410001.411136581884.49

Co. Ltd.Guangfo Expressway Co. ltd. 154982475.25 154982475.25

Yuegao Capital Investment

322500000.0053000000.00375500000.00

(Guangzhou) Co. Ltd.Guanghui Expressway Co. Ltd. 2025676105.10 2025676105.10

Total 3374330463.43 318410001.41 3692740464.84

166Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

（2）Investment to joint ventures and associated enterprises

In RMB

Increase /decrease in reporting period

Closing

Announced for

Decrease Investment Other Other Provision balance of

Name Opening balance Increase in distributing Closing balance

in income under comprehensive changes for Other impairment

investment cash dividend

investment equity method income in equity impairment provision

or profit

I. Joint ventures

II. Associated enterprises

Guangdong

Jiangzhong

446883150.4045000000.006731118.4916005.854627613.17494002661.57

Expressway

Co. Ltd.Ganzhou

Gankang

163154438.009568563.16172723001.16

Expressway

Co. Ltd.Ganzhou

Kangda

246268935.1320692056.64266960991.77

Expressway

Co. Ltd.Shenzhen

Huiyan

348669767.3214856921.37363526688.69

Expressway

Co. Ltd.Zhaoqing

Yuezhao

310209765.8730133975.22340343741.09

Highway

Co. Ltd.Guoyuan 987867627.42 22017218.07 12110298.33 2424.19 15522387.30 1006475180.71

167Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Securities

Co.Ltd.Guangdong

Yuepu

Small 219031496.39 4689969.97 223721466.36

Refinancing

Co. Ltd

Subtotal 2722085180.53 45000000.00 108689822.92 12110298.33 18430.04 20150000.47 2867753731.35

Total 2722085180.53 45000000.00 108689822.92 12110298.33 18430.04 20150000.47 2867753731.35

168Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

4. Business income and Business cost

In RMB

Items Amount of current period Amount of previous period

Revenue Cost Revenue Cost

Main business 734319820.33 242491456.98 636965610.55 249145875.83

Other 6352612.68 1795927.53 5689892.19 1926210.70

Total 740672433.01 244287384.51 642655502.74 251072086.53

5.Investment income

In RMB

Items

Amount of current period Amount of previous period

Long-term equity investment income

404052121.37681064177.01

accounted by cost method

Long-term equity investment income

108689822.9298360414.38

accounted by equity method

Investment income from disposal of

-45107982.42

Long-term equity investment

Dividend income from other equity

instrument investments during the 71249739.36 47286243.74

holding period

Interest income from debt investment

10079133.93

during holding period.Other 12728947.34

Total 596720630.99 791681986.64

XVII. Supplementary Information

1.Current non-recurring gains/losses

√ Applicable □Not applicable

In RMB

Items Amount Notes

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

-15753.62

off part for which assets impairment provision is made)

Government subsidies recognized in current gain and

loss(excluding those closely related to the Company’s 5654550.96

business and granted under the state’s policies)

Net amount of non-operating income and expense except

1923823.88

the aforesaid items

Other non-recurring Gains/loss items 795422.82

The impairment provision for the advance expenses that

have occurred but need to be defined from the source of -43681523.62

funds

Less :Influenced amount of income tax 2088521.91

Influenced amount of minor shareholders’ equity (after

-9372564.36

tax)

169Guangdong Provincial Expressway Development Co.. Ltd. The Semi-Annual Report 2023

Total -28039437.13 --

None ：

Due to its special nature the provision for impairment of the management and maintenance expenditures that ha

ve been paid for by Guangfo Expressway but whose source of funds needs to be clarified will affect the normal

judgment of the company's operating performance and profitability by the report users.Details of other profit and loss items that meet the non-recurring profit and loss definition

√Applicable□ Not applicable

Due to the special nature of the impairment provision for management and maintenance expenses of the

Guangzhou-Foshan Expressway that has been advanced but the source of funds needs to be clarified it will

affect the normal judgment to the Company's operating performance and profitability by the user of the report.Explanation on defining the non recurring profit and loss items listed in the Explanatory Announcement

No. 1 on Information Disclosure of Companies Issuing Securities to the Public as recurring profit and loss

items□ Applicable√ Not applicable

2. Return on equity (ROE) and earnings per share (EPS)

EPS（Yuan/share）

Profit as of reporting period Weighted average ROE (%)

EPS-basic EPS-diluted

Net profit attributable to common

9.30%0.420.42

shareholders of the Company

Net profit attributable to common

shareholders of the Company after

9.59%0.440.44

deduction of non-recurring profit

and loss

3. Differences between accounting data under domestic and overseas accounting standards（ 1）．Simultaneously pursuant to both Chinese accounting standards and international accounting

standards disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable

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

Chinese accounting standards.□ Applicable□√ Not applicable

(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign account

ing standards. If the data that has been audited by an overseas audit institution is adjusted for differences

the name of the overseas institution should be indicated

170