粤高速B:2021年半年度报告（英文版）

Guangdong Provincial Expressway Development Co. Ltd.The Semi-Annual Report 2021

August 2021

I. 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.Zheng Renfa 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.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

Documents available for inspection

1. Accounting statements carried with personal signatures and seals of legal representative Chief Financial officer

and Financial Principal.2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures

of certified Public accountants.Definition

Terms to be defined Refers to Definition

Reporting period Refers to January 1 2021 to June 302021

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

Reporting date Refers to

of directors of 2021 that is August 26 2021

YOY Refers to Compared with January-June 2020

The Company /This Company Refers to Guangdong Provincial Expressway Development Co.Ltd.Communication Group Refers to Guangdong Communication Group Co. Ltd.Provincial Expressway Refers to Guangdong Provincial Freeway Co.Ltd.Construction Company Refers to Guangdong Highway Construction Co. Ltd.Technology Company/Guangdong

Refers to Guangdong Expressway Technology Investment Co. Ltd

Expressway Technology

Fokai Company Refers to Guangdong Fokai Expressway Co. Ltd.Reconstruction and extension Project of the Reconstruction and Expansion Project of Sanbao-Shuikou Section

Refers to

South Section of Fokai Expressway of Fokai Expressway.Guangfo Company Refers to Guangdong Guangfo Expressway Co. Ltd.Guangdong Expressway Capital Refers to Yuegao Capital Investment (Guangzhou) Co. Ltd.Guangzhou Guangzhu Transporation Investment Management

Guangzhu Transportation Refers to

Co. Ltd.Guangzhu East Company Refers to Jingzhu Expressway Guangzhu Section Co. Ltd.Guanghui Company Refers to Guangdong Guanghui Expressway Co. Ltd.Guangdong Provincial Expressway Development Co. Ltd.acquired 21% equity of Guangdong Guangzhou-Huizhou

Major assets restructuring Refers to

Expressway Co. Ltd. held by Guangdong Provincial Expressway

Co. Ltd. by paying cash in 2020.II. Company Profile & Financial Highlights.1.Company Profile

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

Name in Chinese 广东省高速公路发展股份有限公司

Abbreviation of Registered粤高速

Company (if any)

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

GPED

any)

Legal Representative Zheng Renfa

2. Contact person and contact manner

Board secretary Securities affairs Representative

Name Yang Hanming Liang Jirong

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

address Zhujiang New City Tianhe Disrtict Guangzhou Zhujiang New City Tianhe Disrtict Guangzhou

Tel 020-29004619 020-29004523

Fax 020-38787002 020-38787002

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

3. Other

1. Way of contact

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

reporting period or not

□ Applicable √ Not applicable

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

reporting period found more details in annual report 2020.2. 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 2020.4. Summary of Accounting Data and Financial Indicators

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

√Yes □ No

Retroactive adjustment or restatement of causes

Merger of enterprises under the same control

Same period of last year YoY+/-（%）

Reporting period

Before adjustment After adjustment After adjustment

Operating income（yuan） 2488474669.81 660898961.79 1117754309.27 122.63%

Net profit attributable to the

shareholders of the listed company 848860350.64 -5830257.18 24616425.76 3348.35%（yuan）

Net profit after deducting of

non-recurring gain/loss attributable to

842743158.64 -9514717.42 -9514717.42 8957.26%

the shareholders of listed company（yuan）

Cash flow generated by business

1815293217.25 417906104.34 709663295.81 155.80%

operation net（yuan）

Basic earning per share(yuan/Share) 0.41 -0.0028 0.01 4000.00%

Diluted gains per share(yuan/Share) 0.41 -0.0028 0.01 4000.00%

Weighted average income/asset ratio

10.16% -0.06% 0.23% 9.93%

（%）

As at the end of As at the end of last year YoY+/-（%）

the reporting

period Before adjustment After adjustment After adjustment

Gross assets（yuan） 19948560358.43 19748578658.11 19748578658.11 1.01%

Shareholders’ equity attributable to

shareholders of the listed company 8184145884.55 7933136499.11 7933136499.11 3.16%（yuan）

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

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

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

None

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

accounting standards.□ Applicable √Not applicable

None

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

√Applicable □Not applicable

In RMB

Items Amount Note

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

-135447.06

for which assets impairment provision is made)

Government subsidies recognized in current gain and

loss(excluding those closely related to the Company’s business 9298314.52

and granted under the state’s policies)

Net amount of non-operating income and expense except the

2335345.98

aforesaid items

Other non-recurring Gains/loss items 624054.51

Less :Influenced amount of income tax 3030247.74

Influenced amount of minor shareholders’ equity (after tax) 2974828.21

Total 6117192.00 --

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

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

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

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

recurring gains and losses it is necessary to explain the reason.□ Applicable√ Not applicable

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

disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.III. Management Discussion &Analysis

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

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

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

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

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

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

pressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Technology Petty Loan Co. Ltd.Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd.and Hunan Lianzhi Technology Co. Ltd.As of the end of the reporting period the company’ s share-controlled expressway is 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

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

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

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

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

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

Ⅰ.General

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

□ Yes √No

In2020The sudden new coronavirus epidemic (hereinafter referred to as the "epidemic") the first-level response t

o nationwide emergency was launched and the original toll-free period during the holidays (January 24 to January

30)-legal Spring Festival was extended to February 8According to the relevant regulations of the Ministry of Tra

nsport From 0:00 on February 17 2020 to 24:00 On May 52020 the toll fees for vehicles on roads across the

country previously toll charged shall be exempted. This policy resulted in a decrease in the company's operating

income for the first half of 2020. In the First half of 2021 the number of toll days the company participated in the

holding expressway increased by 79 days YOY. The toll revenue of each expressway increased of the Company

are as follows:

Items Volume of vehicle traffic Toll income in the first half Toll income in the first half Increase

in the first half year of year of 2021 year of 2020（Ten thousand）/Decrease(%）2021

Guangfo Expressway 38137491 21506.82 10118.98 112.54%

Fokai Expressway 41173866 68716.50 28802.15 138.58%

Jingzhu Expressway 35139833 54681.68 21943.09 149.20%

Guangzhu East Section

Guanghui Expressway 38899252 99166.79 44716.78 121.77%

Huiyan Expressway 25705518 11662.36 5571.51 109.32%

Yuezhao Expressway 18466744 26278.83 13169.31 99.55%

Jiangzhong Expressway 32632829 23390.60 8711.84 168.49%

Guangle Expressway 19828928 163513.79 64411.57 153.86%

Kangda Expressway 743202 15008.00 5872.95 155.54%

Gangkang Expressway 2434649 9899.57 3880.08 155.14%

Among them the Fokai Expressway was influenced by the opening of the entire Kaiyang Expressway after it

completed the reconstruction and it is connected to Fokai Expressway the traffic capacity of the main line has

been greatly improved and it has also induced new traffic while the flow of traffic has returned thus the toll

income has increased significantly; Influenced by the opening of the Xinggan North Extension Expressway

Kangda Expressway has shortened the mileage from Zhejiang to Guangzhou and some traffic flow returned; on

the other hand the overall logistics industry has recovered truck traffic has increased and the toll revenue has

also increased significantly. .Year-on-year change of main financial data

In RMB

YOY

Same period last

This report period change Cause change

year

（%）

During the same period last year due to the

impact of the new coronavirus epidemic and

the exemption of expressway tolls the toll

Operating income 2488474669.81 1117754309.27 122.63% revenues decreased significantly; however

the tolls are restored normally in the current

period and the toll revenues increase

significantly.Operating cost 889127742.43 777474885.26 14.36%

Administrative

93357035.39 78662061.95 18.68%

expenses

Financial expenses 120868584.07 120703176.54 0.14%

Income tax expenses 354025065.47 94128013.74 276.11% During the same period last year due to the

YOY

Same period last

This report period change Cause change

year

（%）

impact of the new coronavirus epidemic and

the exemption of expressway tolls the

Company's taxable income has dropped

significantly.During the same period last year due to the

impact of the new coronavirus epidemic and

Cash flow generated the exemption of expressway tolls the toll

by business operation 1815293217.25 709663295.81 155.80% revenues decreased significantly; however

net the tolls are restored normally in the current

period and the toll revenues increase

significantly.Net cash flow

generated by -158820398.94 -186735227.73 -14.95%

investment

Mainly due to the payment of the remaining

Net cash flow 21% equity acquisition of Guangdong

-936574211.78 -83392292.82 1023.09%

generated by financing Guanghui Expressway Co. Ltd during the

current period.Mainly due to the joint influence of business

Net increasing of cash

719898606.53 439535775.26 63.79% activities investment activities and financing

and cash equivalents

activities.During the same period last year due to the

impact of the new coronavirus epidemic and

the exemption of expressway tolls ， Theperformance of share-participating

Investment Income 172050127.56 66754110.72 157.74% expressways has fallen sharply; the tolls have

restored normally in the current period the

performance has recovered and the

recognized investment income has increased

significantly.Mainly because the fair value changes of

Other Comprehensive

-35057445.36 -143912924.53 -75.64% Everbright Bank shares held are smaller than

Income

the same period last year

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

2488474669.81 100% 1117754309.27 100% 122.63%

revenue

Industry

Highway

2440717934.74 98.08% 1055810003.29 94.46% 131.17%

transportations

Other 47756735.07 1.92% 61944305.98 5.54% -22.90%

Product

Highway

2440717934.74 98.08% 1055810003.29 94.46% 131.17%

transportations

Other 47756735.07 1.92% 61944305.98 5.54% -22.90%

Area

Guangfo

215068229.34 8.64% 101189814.78 9.05% 112.54%

Expressway

Fokai Expressway 687165042.12 27.61% 288021522.60 25.77% 138.58%

Jingzhu

Expressway 546816777.61 21.98% 219430871.41 19.63% 149.20%

Guangzhu Section

Guanghui

991667885.67 39.85% 447167794.50 40.01% 121.77%

Expressway

Other 47756735.07 1.92% 61944305.98 5.54% -22.90%

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

Profit over 10%

√ Applicable □Not applicable

In RMB

Increase/decrea Increase/decrea

Increase/decrea

se of business se of gross

Gross se of revenue in

cost over the profit rate over

Turnover Operation cost profit the same period

same period of the same period

rate(%) of the previous

previous year of the previous

year(%)

(%) year (%)

Industry

Highway

2440717934.74 860306628.15 64.75% 131.17% 17.01% 30.53%

transportations

Product

Highway

2440717934.74 860306628.15 64.75% 131.17% 17.01% 30.53%

transportations

Area

Guangfo

215068229.34 43814271.77 79.63% 112.54% 14.05% 17.59%

Expressway

Fokai

687165042.12 364481245.62 46.96% 138.58% 11.62% 60.33%

Expressway

Jingzhu

Expressway

546816777.61 146984172.48 73.12% 149.20% 23.38% 27.41%

Guangzhu

Section

Guanghui

991667885.67 305026938.28 69.24% 121.77% 21.45% 25.40%

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

Any over 30% YoYMovements in the data above and why

√ Applicable □ Not applicable

During the same period last year due to the impact of the new coronavirus epidemic and the exemption of

expressway tolls the toll revenues decreased significantly; however the tolls are restored normally in the current

period and the toll revenues increase significantly.IV. Non-core business analysis

√ Applicable □Not applicable

In RMB

Ratio in total Whether be

Amount Note

profit sustainable

It is due to the operation accumulation

Investment Income 172050127.56 11.07% Sustainable

of participant companies

Gain and loss of

0.00%

changes in fair value

Fokai Company accrued impairment

Asset impairment -2889394.16 -0.19% Not sustainable

reserve for fixed assets

Non-operating Mainly insurance claims and road

4011220.05 0.26% Not sustainable

income property claims

Non-operating

1811321.13 0.12% Mainly road property repair expenses Not sustainable

expenses

Mainly is amortization and

Other income 9922369.03 0.64% cancellation of provincial boundary Sustainable

Toll station subsidies.Credit impairment -1310999.95 -0.08% Impairment provision of accounts Not sustainable

losses receivable and other receivables

accrual

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

Change in Reason for

As a percentage As a percentage percentage( significant

Amount of total Amount of total %) change

assets(%) assets(%)

Monetary fund 3567296610.42 17.88% 2847398003.89 14.42% 3.46%

Accounts

143817895.36 0.72% 168907517.56 0.86% -0.14%

receivable

Contract assets 5231809.89 0.03% 5452813.90 0.03% 0.00%

Inventories 375353.97 0.00% 53761.06 0.00% 0.00%

Investment real

2999822.65 0.02% 3110381.89 0.02% 0.00%

estate

Long-term

equity 2425787626.37 12.16% 2382381165.60 12.06% 0.10%

investment

Fixed assets 10897135679.38 54.63% 11540075929.69 58.43% -3.80%

Construction in

476068792.62 2.39% 340611095.47 1.72% 0.67%

process

Use right assets 18740252.76 0.09% Not applicable 0.09%

Shore-term

200175000.00 1.00% 200192500.00 1.01% -0.01%

loans

Contract

327734.51 0.00% 309734.51 0.00% 0.00%

liabilities

Long-term

5877040700.00 29.46% 4977438800.00 25.20% 4.26%

borrowing

Lease liabilities 7722763.42 0.04% Not applicable 0.04%

2.Main assets overseas

□ Applicable √Not applicable

3.Asset and Liabilities Measured by Fair Value

√ Applicable □Not applicable

In RMB

Gain/Loss Purcha

Impairm Sold

on fair sed

Cumulative fair ent amount

value amoun

value change provisio in the Other Closing

Items Opening amount change in t in the

recorded into ns in the reporti change amount

the reporti

equity reportin ng

reporting ng

g period period

period period

Financial

assets

4．Other

Equity 1687611990.1737015528.29 371702811.52

Instrument 05

Investment

Total of the 1687611990.1737015528.29 371702811.52

above 05

Financial

0.00 0.00

liabilities

Other change

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

period?

□ Yes √No

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

0.00 80000000.00 -100.00%

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

□ Applicable √Not applicable

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

□ Applicable √Not applicable

4.Investment of Financial Asset

（1）Securities investment

√ Applicable □ Not applicable

Purc

hase Sale

Mode of Changes amo amou

Book value Book value

Stock Initial accountin in fair Cumulative fair unt nt in Gain/loss of

Security Security balance at the balance at the Accounting Funding

Abbreviati investment g value of value changes in the the reporting

category code beginning of the end of the items source

on: cost measure the this in equity the this period

reporting period reporting period

ment period this perio

perio d

Domestic and Other equity

Everbright 517560876.8

foreign 601818 FVM 938667226.56 0.00 371702811.52 0.00 0.00 49403538.24 889263688.32 Instrument Self funds

Bank 0

stocks Investment

517560876.8

Total -- 938667226.56 0.00 371702811.52 0.00 0.00 49403538.24 889263688.32 -- --0

Disclosure Date of Announcement on

Securities Investment Approved by the July 222009

Board of Directors

Disclosure Date of Announcement on

Securities Investment Approved by the August 72009

Shareholders Meeting(If any)

（2）Investment in Derivatives

□ Applicable √ Not applicable

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

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 Registered

Company Name Leading products and services Total assets Net assets Operating Income Operating profit Net Profit

type capital

Operating Guangfo Expressway Co.Guangfo Ltd.(starts from Hengsha Guangzhou ends RMB 200

Subsidiary 514097101.98 433600597.86 223491338.35 164839345.28 125126708.37

Expressway in Xiebian Foshan. Total length 15.7 million

kilometers

The operation and management of

Jingzhu

Guangzhu Expressway and provision of

Expressway RMB 580

Subsidiary supporting services including fueling 2312034183.75 919053598.97 560521671.83 359238628.25 266411477.01

Guangzhu million

salvage and supply of parts and

Section Co. Ltd.components

Investment in and construction of

Guanghui Expressway Co. Ltd. and

Guangdong supporting facilities the toll collection and

RMB

Guanghui Sharing maintenance management of Guanghui

2.352 4443380555.83 3964191459.74 1004523049.04 694550415.51 516820409.74

Expressway Co. company Expressway The Guanghui Expressway's

billion

Ltd. 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

In the first half of 2021 the number of toll days for the Company’s share-participating expressways and holding expressways increased by 79 days YOY and the

toll income of each expressway increased. The operating income operating profit and net profit of Guangfo Expressway Co. Ltd Jingzhu Expressway Guangzhu

Section Co. Ltd and Guangdong Guanghui Expressway Co. Ltd increased significantly YOY.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.IV. Corporate Governance

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

1.Annual General Meeting

Investor

Meeting Type participatio Convened date Disclosure date Index to disclosed information

n ratio

1. The meeting examined and approved the Proposal on signing a supplementary agreement to

the "Financial Service Agreement" with Guangdong Communications Group Finance Co. Ltd.Agreed that the Company and Guangdong Communications Group Finance Co. Ltd will sign a

supplementary agreement to the "Financial Service Agreement". During the validity period of the

agreement Guangdong Guanghui Expressway Co. Ltd will be a subsidiary to the Company and

meanwhile increase the deposit and loan limit of Guangdong Communications Group Finance

Co. Ltd. It stipulates the quota of the total daily balance of deposits from the Company and its

Provisio

First provision affiliated companies shall not exceed RMB 3 billion and the daily balance of its credit business

Shareholders’ to the Company and its affiliated companies shall not exceed RMB 4 billion.Shareho

general 65.66% February 32021 February 42021 2. The meeting examined and adopted the "Proposal on Requesting the Increase of Audit Fees for

lders’

meeting of Annual Financial Reports etc."

general

2021 It agreed to increase the Company's annual financial report and other audit fees by 120000 yuan

meeting

and it’s expected that the annual financial report and other audit fees will be controlled within

RMB 1.32 million (including 1.32 million yuan).3. The meeting examined and adopted the "Proposal on Election of Mr. Lu Ming as a Director of

the Ninth Board of Directors of the Company"

Mr.Lu Ming was elected as Director of the Ninth board of directors of the

Company with the same term as the members of the ninth session of the board

Investor

Meeting Type participatio Convened date Disclosure date Index to disclosed information

n ratio

of directors.I.The meeting examined and adopted the Proposal Concerning Final Accounting Report for 2020

II.The meeting examined and adopted the Proposal Concerning Preplan for Profit Distribution for2020

1. It’s planned to draw RMB 93232912.82 that is based on 10% of the net profit realized by the

parent company for the statutory surplus reserve.Annual

2020 2. RMB 608424582.67 is to be allocated as the fund for dividend distribution for 2020. with

Shareho

Shareholders’

lders’ 65.63% June 222021 June 232021 the total shares at the end of 2020 i.e. 2090806126 shares as the base cash dividend of RMB

general

General

meeting 2.91 (including tax) is to be distributed for every 10 shares .The remaining undistributed profits

Meeting

are to be carried forward to the next year. The foreign exchange translation of the cash dividends

for shareholders holding B share and overseas corporate shares will be determined according to

HKD:RMB bank’s Middle rate quoted by People’s Bank of China on the first working day after

2020 annual shareholders’ general meeting makes resolution on dividend distribution.3. The meeting examined and adopted the Proposal Concerning Overall budget report of the

Company for 2021

Investor

Meeting Type participatio Convened date Disclosure date Index to disclosed information

n ratio

4.The meeting examined and adopted the Work Report of the Board of Directors for 2020

5.The meeting examined and adopted the Work Report of the supervisory Committee for 2020

6.The meeting examined and adopted Annual Report for 2020 and its summary

7. The meeting examined and adopted the Proposal for Hiring the 2021Annual Financial Report

Audit Agency

It’s agreed that the Company will continue to hire Yong Tuo Certified Public Accountants

(Special General Partnership) as the audit agency for the Company’s 2021 financial report. It’s

estimated that the annual financial report and other audit expenses will be 1.32 million yuan.The Company authorized the management to negotiate with the accounting firm to determine

the 2021 audit fee based on the Company's actual business situation in 2021.8.The meeting examined and adopted the Proposal for Hiring the 2021 Internal Control Audit

Institution

It’s agreed that the Company will continue to hire Yong Tuo Certified Public Accountants

(Special General Partnership) as the auditing body for internal control of the Company for 2021.The audit fee shall be less than RMB300000.9. The meeting examined and adopted the Proposal on Supplementing the Director Candidate

for the Ninth Board of Directors

Investor

Meeting Type participatio Convened date Disclosure date Index to disclosed information

n ratio

Mr.Ren Hua was elected as Director of the Ninth board of directors of the Company with

the same term as the members of the ninth session of the board of directors.10. The meeting examined and adopted the Proposal on the preparation of Guangdong

Provincial Expressway Development Co. Ltd.'s "Shareholder Return Plan for the Next Three

Years (2021-2023)"

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

Elected as Director of the Ninth board of directors of

Lu Ming Director Elected February 32021

the Company

Elected as Director of the Ninth board of directors of

Ren Hua Director Elected June 222021

the Company

Zhuo Resigned from the board of directors of the Company

Director Left February 242021

Weiheng due to job transfer.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

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

Not applicable

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

discharge units announced by the environmental protection department.II. Social responsibilities

In the first half of 2021 the Company actively fulfilled its social responsibilities worked hard to overcome

the adverse effects of the coronavirus epidemic soundly managed the work and positively overcame difficulties

strictly implemented various prevention and control measures and achieved zero infection in the Company's

system meanwhile stuck to the front line of epidemic prevention and protection to ensure the roads be

unobstructed and promoted the normalized epidemic prevention and control and soundly implemented the

Company’s various tasks by entirely planned thus effectively promoted the stability and improvement of

economic operations.1. Strengthen leadership and implement the main responsibility of prevention and control. According to the

unified deployment of Guangdong Province the State-owned Assets Supervision and Administration Commission

and the Transportation Group on the prevention and control of the new coronavirus epidemic the Company

responded quickly acted fast and positively and put the life safety and health of the employees first made every

effort to do a good job in the prevention and control of the coronavirus epidemic. The leadership team firmly

stood to their posts commanded in the front and followed the orders and led the subordinates. Since the epidemic

prevention and control the Company’s leaders have deeply gone down to the grassroots and the frontline of

epidemic prevention inspected the prevention and control measures of various units supervised relevant units to

implement prevention and control measures for service areas and charging sites and other key places key areas

key chains key groups and important nodes. The Company’s party committee actively mobilized party workers’

volunteers to participate in the epidemic prevention and control work for effectively fighting the epidemic.2. Toll-free policies for passenger cars with less than seven seats and preferential policies for green channels

continue to be implemented during major highway holidays. Guangfo Company Fokai Branch Guangzhu EastCompany and Guanghui Company will effectively “recognize the position and ensure that the personnel are inplace” responsibilities are in place and measures are in place" to successfully complete various tasks of ensuring

safety and smooth flow.3. Actively respond to government policies and provide preferential reductions and exemptions in accordance

with laws and regulations to reduce corporate transportation costs and public travel costs.VI. Important Events

I. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the

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

senior management personnel and other related parities.□ Applicable √Not applicable

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

the Company

II. Particulars about the non-operating occupation of funds by the controlling shareholder

□ Applicable √ Not applicable

None

III. Illegal provision of guarantees for external parties

□ Applicable √ Not applicable

None

IV. 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

No such cases in the Reporting Period.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.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

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

□ Yes √No

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 daily Deposit interest Beginning The amount Ending balance

deposit limit rate range balance（10， incurred（10，（10，000）

（10，000） 000） 000）

Guangdong

Communicatio Controlled by

ns Group the same parent 300000.00 1.725%-3.57% 103110.58 74933.67 178044.25

Finance Co. company

Ltd

Loan business

Related party Relationship Beginning The amount Ending balanceLoan limit（Ten Loant interestbalance（Ten incurred（Ten （Ten thousandthousand yuan） rate rangethousand yuan） thousand yuan） yuan）

Guangdong

Communicatio Controlled by

ns Group the same parent 400000.00 3.15% 20000.00 20000.00

Finance Co. company

Ltd

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

Guangdong

Communications Controlled by the same

Credit extension 20000.00 20000.00

Group Finance Co. parent company

Ltd

6. Other significant related-party transactions

√ Applicable □Not applicable

1.The 15th (Provisional) Meeting of the Ninth Board of Directors and the First provisional Shareholders' General

Meeting of 2021 of the Company examined and adopted the Proposal on Signing the Supplementary Agreement

to the Financial Services Agreement with Guangdong Communications Group Finance Co. Ltd.2.The 16th (Provisional) Meeting of the Ninth Board of Directors of the Company examined and adopted the

Proposal Concerning the Company Daily Associated Transactions Predicted of 2021.Agree on the predicted daily associated transactions for the company headquarters wholly-owned and holding

subsidiaries of 2021 whose amount in total is RMB 29.2285 million .3.The16th (Provisional) Meeting of the Ninth Board of Directors of the Company examined and adopted、theProposal on the signing of a contract for the entrusted operation and management from 2021 to 2023 of the

Guangzhu North Section of the Guangdong Jingzhu Expressway between the Guangdong Jingzhu Expressway

Guangzhu North Section Co. Ltd and the Jingzhu Expressway Guangzhu North Section Co. Ltd." It’s agreed that

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

sign the "Entrusted Operation and Management Contract for 2021-2023 for Guangdong Jingzhu Expressway

Guangzhu North Section" with the total contract amount not exceeding 75 million yuan.The website to disclose the interim announcements on significant related-party transactions

Date of disclosing provisional Description of the website for disclosing

Description of provisional announcement

announcement provisional announcements

Announcement of Resolutions of the 15th

(Provisional) Meeting of the Ninth Board of January 192021 www.cninfo.com.cn

Directors（Announcement No.:2021-001）

Announcement of related party transaction

January 192021 www.cninfo.com.cn

（Announcement No.:2021-002）

Announcement of Resolution of the First

Provisional Shareholder's Meeting of 2021 February 42021 www.cninfo.com.cn

（Announcement No.:2021-005）

Announcement of Resolutions of the 16th

(Provisional) Meeting of the Ninth Board of March 262021 www.cninfo.com.cn

Directors（Announcement No.:2021-008）

Estimates announcement of the Daily

Related Party Transaction of 2021 March 262021 www.cninfo.com.cn

（Announcement No.:2021-012）

Announcement on related transactions

concerning the entrusted operation of the March 262021 www.cninfo.com.cn

subsidiary（Announcement No.:2021-013）

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.3. Finance management on commission

□Applicable √ Not applicable

No such cases in the reporting period.4.Major contracts for daily operations

□ Applicable √ Not applicable

5. Other significant contract

□ Applicable √ Not applicable

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

√ Applicable □Not applicable

1. The Department of Transportation of Guangdong Province issued the "Letter of the Department of

Transportation of Guangdong Province on the Charge Period for the Reconstruction and Expansion Project of the

Sanbao-Shuikou Section of the Shenyang-Haikou National Expressway" (No 328-[2021] Guangdong

Transportation Regulation Letter) on June 8 2021 the approved fee period for the Sanbao-Shuikou section of the

Shenyang-Haikou National Expressway is 24.6011 years that is from November 8 2019 to June 14 2044. For

the relevant information on this matter please refer to the "Announcement on Significant Events" and

"Announcement on Changes in Accounting Estimates" published by the Company respectively on June 10 2021

（Announcement No.:2021-020）and June 29 2021 on www.cninfo.com.cn. （Announcement No.:2021-024）XIV. Significant event of subsidiary of the Company

□ Applicable √Not applicable

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 Capital

n ization

Bonu Su

Share of

s bt Quant

allotm comm Other Proportion

share ot ity

ent on

s al

reserve

fund4392

1.Shares with conditional

439254717 21.01% 5471 21.01%

subscription74100

1.State-owned shares 410040696 19.61% 4069 19.61%6

2.State-owned legal person 2171

21712738 1.04% 1.04%

shares 27387501

3.Other domestic shares 7501283 0.36% 0.36%283

Including ：Domestic Legal 69656965095 0.33% 0.33%

person shares 095

Domestic natural person 5361

536188 0.03% 0.03%

shares 88

4.Foreign shares 0 0.00% 0 0.00%

Including：Foreign legal0 0.00% 0 0.00%

person shares

Foreign natural person

0 0.00% 0 0.00%

shares1651

II.Shares with unconditional 165155140

78.99% 5514 78.99%

subscription 9091302130290273

1.Common shares in RMB 62.32% 9027 62.32%434

2.Foreign shares in 3486

348648675 16.68% 16.68%

domestic market 4867

3.Foreign shares in foreign

0 0.00% 0 0.00%

market

4.Other 0 0.00% 0 0.00%2090209080612

III. Total of capital shares 100.00% 8061 100.00%626

Reasons for share changed

□Applicable √Not applicable

Approval of Change of Shares

□Applicable √Not applicable

Ownership transfer of share changes

□Applicable √Not applicable

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

common shareholders of Company in latest year and period

□Applicable √Not applicable

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

regulators

□Applicable √Not applicable

Progress on any share repurchase:

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

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

common shareholders of Company in latest year and period

□ Applicable √ Not applicable

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

regulators

□ Applicable √Not applicable

2. Change of shares with limited sales condition

□ Applicable √Not applicable

II. Securities issue and listing

□ Applicable √Not applicable

III. Shareholders and actual controlling shareholder

1. Number of shareholders and shareholding

In Shares

Total number of common Total number of preferred shareholders that

shareholders at the end of the 53257 had restored the voting right at the end of 0

reporting period the reporting period (if any) (note 8)

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

Number of share

Proportio Number of

Changes in Amount of Amount of pledged/frozen

Nature of n of shares held

Shareholders reporting restricted un-restricted

shareholder shares at period State

period shares held shares held Amoun

held % -end of（） t

Guangdong

State-owned

Communication 24.56% 513420438 410040696 103379742

legal person

Group Co.Ltd

Guangdong Highway

State-owned

Construction Co. 22.30% 466325020 466325020

legal person

Ltd

Shangdong

Expressway

State-owned

Investment 9.68% 202429149 202429149

legal person

Development Co.Ltd.Tibet Yingyue

Investment State-owned

4.84% 101214574 101214574

Management Co. legal person

Ltd.Guangdong

State-owned

Provincial Freeway 2.53% 52937491 19582228 33355263

legal person

Co.Ltd.China Life Insurance

Co. Ltd.－Dividend

Other 1.96% 41009355 41009355

－Personal dividend

-005L-FH002 Shen

Domestic

Feng Wuchu natural 0.99% 20597146 -196707 20597146

person shares

GUOTAI JUNAN Overseas

0.64% 13469409 7062996 13469409

SECURITIES(HONG legal person

KONG) LIMITED

Overseas

Xinyue Co. Ltd. 0.63% 13201086 13201086

legal person

Happy life insurance

Other 0.56% 11617747 11617747 11617747

Co. Ltd.-Dividend

Strategic investor or general legal

person becoming top-10 ordinary

None

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 isRelated or acting-in-concert parties

unknown whether there is relationship between other shareholders and whether they are persons

among shareholders above

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 or None

waiving voting rights

Top 10 shareholders including the

special account for repurchase (if any) None

(see note 11)

Shareholding of top 10 shareholders of unrestricted shares

Quantity of unrestricted shares held at the end Share type

Name of the shareholder

of the reporting period Share type Quantity

Guangdong Highway Construction RMB Common

466325020 466325020

Co. Ltd shares

Shangdong Expressway Investment RMB Common

202429149 202429149

Development Co. Ltd. shares

Guangdong Communication Group RMB Common

103379742 103379742

Co.Ltd shares

Tibet Yingyue Investment RMB Common

101214574 101214574

Management Co. Ltd. shares

China Life Insurance Co. Ltd.－

RMB Common

Dividend －Personal dividend 41009355 41009355

-005L-FH002 Shen

Guangdong Provincial Freeway RMB Common

33355263 33355263

Co.Ltd. shares

RMB Common18291583

Feng Wuchu 20597146 shares

Foreign shares placed 2305563

in domestic

GUOTAI JUNAN

Foreign shares placed

SECURITIES(HONGKONG) 13469409 13469409

in domestic

LIMITED

Foreign shares placed

Xinyue Co. Ltd. 13201086 13201086

in domestic

Happy life insurance Co. RMB Common

11617747 11617747

Ltd.-Dividend shares

Explanation on associated relationship

or consistent action among the top 10 Guangdong Communication Group Co. Ltd. is the parent company of Guangdong Highway

shareholders of non-restricted Construction Co. Ltd. ，Guangdong Provincial Freeway Co.Ltd. and Xinyue Co. Ltd. It isnegotiable shares and that between the unknown whether there is relationship between other shareholders and whether they are persons

top 10 shareholders of non-restricted taking concerted action specified in the Regulations on Disclosure of Information about Change

negotiable shares and top 10 in Shareholding of Shareholders of Listed Companies.shareholders

Top 10 ordinary shareholders

conducting securities margin trading None

(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 2020 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.VIII. Situation of the Preferred Shares

□Applicable √Not applicable

The Company had no preferred shares in the reporting period

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.III. Debt financing instruments of non-financial enterprises

√Applicable □ Not applicable

1.Basic information

Inter

Bond short Bond

Bond name Issue day Value date Due day Bond balance est Servicing way Trading

name code

rate

Guangdong Prov Due payments once a

incial Expresswa 19 year The principal a

Interba

y Development Guangdong 10190025 February March March nd the last instalment

678798734.87 4% nk mark

Co. Ltd. 2019 fir Expresswa 2 272019 12019 12024 interest are paid in on

st phase medium y MTN001 e lump sum on the re

-term notes demption date.Guangdong Prov Due payments once a

incial Expresswa 20 year The principal a

Interba

y Development Guangdong 10200036 March March March nd the last instalment

748157926.49 3% nk mark

Co. Ltd. 2020 fir Expresswa 7 132020 172020 172025 interest are paid in on

st phase medium y MTN001 e lump sum on the re

-term notes demption date.Circulation and transfer in the national inter-bank bond market its listing and circulation will be carried

Applicable trading mechanism

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

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 222.53% 118.91% 103.62%

Debt ratio 47.54% 48.19% -0.65%

Quick ratio 222.30% 118.77% 103.53%

At the same time rate of

Amount of this period Amount of last period

change

Net profit after deducting

84274.32 -951.47 8957.28%

non-recurring profit and loss

EBITDA total debt ratio 30.89% 13.55% 17.34%

Time interest earned ratio 11.13 2.51 343.43%

Cash interest guarantee times 12.29 11.91 3.19%

EBITDATime interest earned

15.46 6.4 141.56%

ratio

Repayment of debt (%) 477.42% 176.34% 301.08%

Payment of interest (%) 111.13% 46.78% 64.35%

Note：

The data for the same period last year is the data after the retrospective restatement of the 2020 semi-annual finan

cial data in accordance with the relevant standards for business mergers under the same control after the company

's major asset reorganization

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 302021

In RMB

Items June 302021 December 302020

Current asset：

Monetary fund 3567296610.42 2847398003.89

Settlement provision

Outgoing call loan

Transactional financial assets

Derivative financial assets

Notes receivable

Account receivable 143817895.36 168907517.56

Financing of receivables

Prepayments 3629905.49 3607538.01

Insurance receivable

Reinsurance receivable

Provisions of Reinsurance contracts

receivable

Other account receivable 116279317.70 60925367.64

Including：Interest receivableDividend receivable 77609011.14 2705472.90

Repurchasing of financial assets

Items June 302021 December 302020

Inventories 375353.97 53761.06

Contract assets 5231809.89 5452813.90

Assets held for sales

Non-current asset due within 1 year 6188916.16 51745.32

Other current asset 793006.80 27051.69

Total of current assets 3843612815.79 3086423799.07

Non-current assets：

Loans and payment on other’s behalf

disbursed

Creditor's right investment

Other creditor's right investment

Long-term receivable

Long term share equity investment 2425787626.37 2382381165.60

Other equity instruments investment 1687611990.05 1737015528.29

Other non-current financial assets

Property investment 2999822.65 3110381.89

Fixed assets 10897135679.38 11540075929.69

Construction in progress 476068792.62 340611095.47

Production physical assets

Oil & gas assets

Use right assets 18740252.76 Not applicable

Intangible assets 283730534.72 302381356.52

Development expenses

Goodwill

Long-germ expenses to be amortized 2279062.50 3462122.00

Deferred income tax asset 287472257.16 330755418.39

Other non-current asset 23121524.43 22361861.19

Total of non-current assets 16104947542.64 16662154859.04

Total of assets 19948560358.43 19748578658.11

Current liabilities

Short-term loans 200175000.00 200192500.00

Loan from Central Bank

Borrowing funds

Items June 302021 December 302020

Transactional financial liabilities

Derivative financial liabilities

Notes payable

Account payable 306508695.83 369773342.71

Advance receipts 21801794.77 11309007.41

Contract liabilities 327734.51 309734.51

Selling of repurchased financial

assets

Deposit taking and interbank deposit

Entrusted trading of securities

Entrusted selling of securities

Employees’ wage payable 25320989.97 16726198.13

Tax payable 176211612.25 217748392.78

Other account payable 819156400.81 1512619359.78

Including：Interest payableDividend payable 630684374.92 22262804.39

Fees and commissions payable

Reinsurance fee payable

Liabilities held for sales

Non-current liability due within 1

175857862.51 266328017.47

year

Other current liability 1882974.53 648581.64

Total of current liability 1727243065.18 2595655134.43

Non-current liabilities：

Reserve fund for insurance contracts

Long-term loan 5877040700.00 4977438800.00

Bond payable 1426956661.36 1426488336.65

Including：preferred stockSustainable debt

Lease liability 7722763.42 Not applicable

Long-term payable 3461832.74 40406172.37

Long-term remuneration payable to

staff

Expected liabilities

Items June 302021 December 302020

Deferred income 79199331.40 89170569.64

Deferred income tax liability 362172755.30 387103060.74

Other non-current liabilities

Total non-current liabilities 7756554044.22 6920606939.40

Total of liability 9483797109.40 9516262073.83

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stockSustainable debt

Capital reserves 692034132.73 645969210.48

Less：Shares in stockOther comprehensive income 267838432.29 302895877.65

Special reserve

Surplus reserves 1167785965.63 1167785965.63

Common risk provision

Retained profit 3965681227.90 3725679319.35

Total of owner’s equity belong to the

8184145884.55 7933136499.11

parent company

Minority shareholders’ equity 2280617364.48 2299180085.17

Total of owners’ equity 10464763249.03 10232316584.28

Total of liabilities and owners’

19948560358.43 19748578658.11

equity

Legal Representative: Zheng Renfa

General Manager: Wang Chunhua

Person in charge of accounting：Lu MingAccounting Dept Leader: Zhou Fang

2.Parent Company Balance Sheet

In RMB

Items June 302021 December 312020

Current asset：

Monetary fund 2430212254.68 1781764519.09

Transactional financial assets

Derivative financial assets

Notes receivable

Account receivable 19737518.67 27004827.41

Financing of receivables

Prepayments 1020172.00 2181215.03

Other account receivable 107676866.16 54148114.53

Including：Interest receivableDividend receivable 77609011.14 2705472.90

Inventories

Contract assets

Assets held for sales

Non-current asset due within 1 year 271802985.60 256279340.60

Other current asset 405622.83 27051.69

Total of current assets 2830855419.94 2121405068.35

Non-current assets：

Creditor's right investment 277903684.98 287903684.98

Other creditor's right investment

Long-term receivable

Long term share equity investment 5594733537.89 5529362536.53

Other equity instruments investment 1687611990.05 1737015528.29

Other non-current financial assets

Property investment 2747684.40 2858243.64

Fixed assets 5925202476.53 6245462940.39

Construction in progress 46156802.33 43086545.58

Production physical assets

Oil & gas assets

Use right assets 17382834.74 Not applicable

Intangible assets 144488882.05 150582241.22

Items June 302021 December 312020

Development expenses

Goodwill

Long-germ expenses to be amortized

Deferred income tax asset 280334256.79 322365911.10

Other non-current asset 7089990.48 7089990.48

Total of non-current assets 13983652140.24 14325727622.21

Total of assets 16814507560.18 16447132690.56

Current liabilities

Short-term loans 200175000.00 200192500.00

Transactional financial liabilities

Derivative financial liabilities

Notes payable

Account payable 103250751.10 105919984.52

Advance receipts 752954.29

Contract Liabilities Not applicable

Employees’ wage payable 6208548.09 6472802.81

Tax payable 4754697.62 9165801.86

Other account payable 739961982.78 1431814861.38

Including：Interest payableDividend payable 630684374.92 22262804.39

Liabilities held for sales

Non-current liability due within 1

107306161.27 190331701.48

year

Other current liability 497710890.09 539618124.00

Total of current liability 1660120985.24 2483515776.05

Non-current liabilities：

Long-term loan 5323090700.00 4389653800.00

Bond payable 1426956661.36 1426488336.65

Including：preferred stockSustainable debt

Lease liability 7434009.98 Not applicable

Long-term payable 3461832.74 40406172.37

Long-term remuneration payable to

staff

Items June 302021 December 312020

Expected liabilities

Deferred income 11762103.38 13403327.12

Deferred income tax liability 93448933.15 105636866.50

Other non-current liabilities

Total non-current liabilities 6866154240.61 5975588502.64

Total of liability 8526275225.85 8459104278.69

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stockSustainable debt

Capital reserves 935191327.54 938969546.79

Less：Shares in stockOther comprehensive income 267838432.29 302895877.65

Special reserve

Surplus reserves 987813698.07 987813698.07

Retained profit 4006582750.43 3667543163.36

Total of owners’ equity 8288232334.33 7988028411.87

Total of liabilities and owners’

16814507560.18 16447132690.56

equity

3.Consolidated Income statement

In RMB

Items The first half year of 2021 The first half year of 2020

I. Income from the key business 2488474669.81 1117754309.27

Incl：Business income 2488474669.81 1117754309.27Interest income

Insurance fee earned

Fee and commission received

II. Total business cost 1114434707.99 982301522.18

Incl：Business cost 889127742.43 777474885.26Interest expense

Fee and commission paid

Items The first half year of 2021 The first half year of 2020

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 11081346.10 5461398.43

Sales expense

Administrative expense 93357035.39 78662061.95

R & D costs

Financial expenses 120868584.07 120703176.54

Including：Interest expense 149343110.61 134883778.08Interest income 29751089.44 15990606.72

Add: Other income 9922369.03 5936612.55

Investment gain（“-”for loss） 172050127.56 66754110.72

Incl: investment gains from affiliates 122646589.32 12358090.15

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 -1310999.95 -236683.81

Impairment loss of assets -2889394.16

Assets disposal income 4.37

III. Operational profit（“-”for loss） 1551812064.30 207906830.92

Add ：Non-operational income 4011220.05 5311689.24Less: Non-operating expense 1811321.13 2237538.58

IV. Total profit(“-”for loss) 1554011963.22 210980981.58

Less：Income tax expenses 354025065.47 94128013.74V. Net profit 1199986897.75 116852967.84

(I) Classification by business continuity

1.Net continuing operating profit

2.Termination of operating net profit

(II) Classification by ownership

Items The first half year of 2021 The first half year of 2020

1.Net profit attributable to the owners of parent company 848860350.64 24616425.76

2.Minority shareholders’ equity 351126547.11 92236542.08

VI. Net after-tax of other comprehensive income -35057445.36 -143912924.53

Net of profit of other comprehensive income attributable to o -35057445.36 -143912924.53

wners of the parent company.（I）Other comprehensive income items that will not be

reclassified into gains/losses in the subsequent accounting -37052653.68 -146446202.64

period

1.Re-measurement of defined benefit plans of changes in net

debt or net assets

2.Other comprehensive income under the equity method inve

stee can not be reclassified into profit or loss.3. Changes in the fair value of investments in other equity

-37052653.68 -146446202.64

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 1995208.32 2533278.11

ofit or loss.1.Other comprehensive income under the equity method inve 1995208.32 2533278.11

stee 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

Net of profit of other comprehensive income attributable to

Minority shareholders’ equity

VII. Total comprehensive income 1164929452.39 -27059956.69

Total comprehensive income attributable to the owner of the

813802905.28 -119296498.77

parent company

Items The first half year of 2021 The first half year of 2020

Total comprehensive income attributable minority

351126547.11 92236542.08

shareholders

VIII. Earnings per share

（I）Basic earnings per share 0.41 0.01

(II)Diluted earnings per share 0.41 0.01

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

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

General Manager：Wang ChunhuaPerson in charge of accounting：Lu MingAccounting Dept Leader: Zhou Fang

4. Income statement of the Parent Company

In RMB

Items The first half year of 2021 The first half year of 2020

I. Income from the key business 692634698.13 293579730.04

Incl：Business cost 367240160.93 328657958.84Business tax and surcharge 3738582.05 2414928.72

Sales expense

Administrative expense 47922792.66 40263656.49

R & D expense

Financial expenses 127541297.15 111941828.19

Including：Interest expenses 145100046.47 126623134.06Interest income 17596981.65 14718213.69

Add：Other income 2125443.39 1348815.87Investment gain（“-”for loss） 844032026.57 513084202.15

Including: investment gains from affiliates 119611129.91 55853351.49

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 -2889394.16

Assets disposal income 4.37

II. Operational profit（“-”for loss） 989459941.14 324734380.19

Items The first half year of 2021 The first half year of 2020

Add ：Non-operational income 655426.85 1033092.43Less：Non -operational expenses 22733.31 410045.97III. Total profit(“-”for loss) 990092634.68 325357426.65

Less：Income tax expenses 42194605.52 13012561.44IV. Net profit 947898029.16 312344865.21

1.Net continuing operating profit 947898029.16 312344865.21

2.Termination of operating net profit

V. Net after-tax of other comprehensive income -35057445.36 -143912924.53

（I）Other comprehensive income items that will not be

-37052653.68 -146446202.64

reclassified into gains/losses in the subsequent accounting period

1.Re-measurement of defined benefit plans of changes in net debt

or net assets

2.Other comprehensive income under the equity method investee c

an not be reclassified into profit or loss.3. Changes in the fair value of investments in other equity

-37052653.68 -146446202.64

instruments

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

5.Other

(II)Other comprehensive income that will be reclassified into profi 1995208.32 2533278.11

t or loss

1.Other comprehensive income under the equity method investee c 1995208.32 2533278.11

an 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 912840583.80 168431940.68

VII. Earnings per share

（I）Basic earnings per share

Items The first half year of 2021 The first half year of 2020

(II)Diluted earnings per share

5. Consolidated Cash flow statement

In RMB

Items The first half year of 2021 The first half year of 2020

I.Cash flows from operating activities

Cash received from sales of goods or rending of services 2575650836.44 1123228667.57

Net increase of customer deposits and capital kept for

brother company

Net increase of loans from central bank

Net increase of inter-bank loans from other financial

bodies

Cash received against original insurance contract

Net cash received from reinsurance business

Net increase of client deposit and investment

Cash received from interest commission charge and

commission

Net increase of inter-bank fund received

Net increase of repurchasing business

Net cash received by agent in securities trading

Tax returned 77578.62

Other cash received from business operation 62165772.17 111366877.57

Sub-total of cash inflow 2637816608.61 1234673123.76

Cash paid for purchasing of merchandise and services 153110239.80 118763809.79

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 195340890.00 174308304.27

Taxes paid 448200872.16 205549293.48

Items The first half year of 2021 The first half year of 2020

Other cash paid for business activities 25871389.40 26388420.41

Sub-total of cash outflow from business activities 822523391.36 525009827.95

Net cash generated from /used in operating activities 1815293217.25 709663295.81

II. Cash flow generated by investing

Cash received from investment retrieving 22500000.00 15000000.00

Cash received as investment gains 51523258.20 109322820.32

Net cash retrieved from disposal of fixed assets

9900.00 17625.00

intangible assets 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 74033158.20 124340445.32

Cash paid for construction of fixed assets intangible

232853557.14 216075673.05

assets and other long-term assets

Cash paid as investment 95000000.00

Net increase of loan against pledge

Net cash received from subsidiaries and other

operational units

Other cash paid for investment activities

Sub-total of cash outflow due to investment activities 232853557.14 311075673.05

Net cash flow generated by investment -158820398.94 -186735227.73

III.Cash flow generated by financing

Cash received as investment

Including: Cash received as investment from minor

shareholders

Cash received as loans 1166930000.00 1345590000.00

Other financing –related cash received 97731650.00 13180600.00

Sub-total of cash inflow from financing activities 1264661650.00 1358770600.00

Cash to repay debts 363908100.00 1234507500.00

Cash paid as dividend profit or interests 609553626.92 206533215.82

Including: Dividend and profit paid by subsidiaries to

minor shareholders

Other cash paid for financing activities 1227774134.86 1122177.00

Sub-total of cash outflow due to financing activities 2201235861.78 1442162892.82

Net cash flow generated by financing -936574211.78 -83392292.82

Items The first half year of 2021 The first half year of 2020

IV. Influence of exchange rate alternation on cash and

cash equivalents

V.Net increase of cash and cash equivalents 719898606.53 439535775.26

Add: balance of cash and cash equivalents at the

2846176803.89 3052977164.15

beginning of term

VI ..Balance of cash and cash equivalents at the end of

3566075410.42 3492512939.41

term

6. Cash Flow Statement of the Parent Company

In RMB

Items The first half year of 2021 The first half year of 2020

I.Cash flows from operating activities

Cash received from sales of goods or rending of services 720086995.35 302123119.55

Tax returned

Other cash received from business operation 44973397.60 63304430.86

Sub-total of cash inflow 765060392.95 365427550.41

Cash paid for purchasing of merchandise and services 17069701.31 15346627.62

Cash paid to staffs or paid for staffs 61391499.13 52390979.85

Taxes paid 27826685.08 13428897.71

Other cash paid for business activities 73534284.42 201770756.58

Sub-total of cash outflow from business activities 179822169.94 282937261.76

Net cash generated from /used in operating activities 585238223.01 82490288.65

II. Cash flow generated by investing

Cash received from investment retrieving 37500000.00

Cash received as investment gains 707197026.42 358767434.26

Net cash retrieved from disposal of fixed assets intangible assets

2600.00 6300.00

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 744699626.42 358773734.26

Cash paid for construction of fixed assets intangible assets and

94360520.74 118535092.50

other long-term assets

Cash paid as investment 1246839292.00 82000000.00

Items The first half year of 2021 The first half year of 2020

Net cash received from subsidiaries and other operational units

Other cash paid for investment activities

Sub-total of cash outflow due to investment activities 1341199812.74 200535092.50

Net cash flow generated by investment -596500186.32 158238641.76

III. Cash flow generated by financing

Cash received as investment

Cash received as loans 1166930000.00 1135000000.00

Other financing –related ash received

Sub-total of cash inflow from financing activities 1166930000.00 1135000000.00

Cash to repay debts 322573100.00 1083917500.00

Cash paid as dividend profit or interests 178730958.24 73014375.80

Other cash paid for financing activities 5916242.86 1122177.00

Sub-total of cash outflow due to financing activities 507220301.10 1158054052.80

Net cash flow generated by financing 659709698.90 -23054052.80

IV. Influence of exchange rate alternation on cash and cash

equivalents

V.Net increase of cash and cash equivalents 648447735.59 217674877.61

Add: balance of cash and cash equivalents at the beginning of term 1780543319.09 2790163301.78

VI ..Balance of cash and cash equivalents at the end of term 2428991054.68 3007838179.39

7. Consolidated Statement on Change in Owners’ Equity

Amount in this period

In RMB

The first half year of 2021

Owner’s equity Attributable to the Parent Company

Other Equity instrument Less

Com

Items : Specia MinorOther mon Total of owners’

Share Sust Capital Shar lized Surplus shareholders’

Preferre Othe Comprehensi risk Retained profit Other Subtotal equityCapital aina reserves es in reserv reserves equity

d stock r ve Income prov

ble stoc e ision

debt k

I.Balance at the end 2090806 64596921 116778596 79331364

302895877.65 3725679319.35 2299180085.17 10232316584.28

of last year 126.00 0.48 5.63 99.11

Add: Change of

accounting -433859.42 -433859.42 -433859.42

policy

Correcting of

previous errors

Merger of entities

under common

control

Other

II.Balance at the

2090806 64596921 116778596 79327026

beginning of current 302895877.65 3725245459.93 2299180085.17 10231882724.86

126.00 0.48 5.63 39.69

year

III.Changed in the 46064922 -35057445.36 240435767.97 25144324 -18562720.69 232880524.17

The first half year of 2021

Owner’s equity Attributable to the Parent Company

Other Equity instrument Less

Com

: Specia MinorItems Other mon Total of owners’

Share Sust Capital Shar lized Surplus shareholders’

Capital Preferre Othe

Comprehensi risk Retained profit Other Subtotal equity

aina reserves es in reserv reserves equity

d stock r ve Income prov

ble stoc e ision

debt k

current year .25 4.86

（1）Total81380290

comprehensive -35057445.36 848860350.64 351126547.11 1164929452.39

5.28

income（II）Investment or

decreasing of capital

by owners

1．Ordinary Shares i

nvested by sharehol

ders

2．Holders of other e

quity instruments in

vested capital

3．Amount of shares

paid and accounted

as owners’ equity

4．Other（III）Profit -60842458

-608424582.67 -417577776.30 -1026002358.97

allotment 2.67

The first half year of 2021

Owner’s equity Attributable to the Parent Company

Other Equity instrument Less

Com

: Specia MinorItems Other mon Total of owners’

Share Sust Capital Shar lized Surplus shareholders’

Preferre Othe Comprehensi risk Retained profit Other Subtotal equityCapital aina reserves es in reserv reserves equity

d stock r ve Income prov

ble stoc e ision

debt k

1.Providing of

surplus reserves

2.Providing of

common risk

provisions

3．Allotment to the

-60842458

owners (or -608424582.67 -417577776.30 -1026002358.97

2.67

shareholders)

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)

The first half year of 2021

Owner’s equity Attributable to the Parent Company

Other Equity instrument Less

Com

Items : Specia MinorOther mon Total of owners’

Share Sust Capital Shar lized Surplus shareholders’

Capital Preferre Othe

Comprehensi risk Retained profit Other Subtotal equity

aina reserves es in reserv reserves equity

d stock r ve Income prov

ble stoc e ision

debt k

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

46064922 46064922.（VI）Other 47888508.50 93953430.75.25 25

IV. Balance at the 2090806 69203413 116778596 81841458

267838432.29 3965681227.90 2280617364.48 10464763249.03

end of this term 126.00 2.73 5.63 84.55

Amount in last year

In RMB

The first half year of 2020

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Less

Com

Items : Specia MinorOther mon Total of

Share SusPreferr Capital Shar lized Surplus

shareholders’

Comprehensi risk Retained profit Other Subtotal owners’equity

Capital tain Otheed reserves es in reserv reserves

equity

able r ve Income provi

stock stoc e

deb sionk

I.Balance at the 20908061 309401712 1074553052.8 1055736046

382193344.90 3915790810.76 2139676884.88 12697037348.66

end of last year 26.00 9.31 1 3.78

Add: Change of

accounting

policy

Correcting of

previous errors

Merger of entities

under common

control

Other

II.Balance at the

20908061 309401712 1074553052.8 1055736046

beginning of 382193344.90 3915790810.76 2139676884.88 12697037348.66

26.00 9.31 1 3.78

current year

III.Changed in the 6722106.00 -143912924.53 -875004927.61 -1012195746 -68658149.29 -1080853895.43

The first half year of 2020

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Less

Com Minor

Items : SpeciaOther mon Total of

Share Sus Capital Shar lized Surplus shareholders’Preferr

tain Othe Comprehensi risk Retained profit Other Subtotal

owners’equity

Capital ed reserves es in reserv reserves

equity

able r ve Income provi

stock stoc e

deb sionk

current year .14

（1）Total

-119296498.7

comprehensive -143912924.53 24616425.76 92236542.08 -27059956.697

income（II）Investment

or decreasing of

capital by owners

1．Ordinary Share

s invested by shar

eholders

2．Holders of othe

r equity instrumen

ts invested capital

3．Amount of

shares paid and

accounted as

owners’ equity

4．Other

The first half year of 2020

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Less

Com

: Specia MinorItems Other mon Total of

Share Sus Capital Shar lized Surplus shareholders’Preferr

tain Othe Comprehensi risk Retained profit Other Subtotal

owners’equity

Capital ed reserves es in reserv reserves

equity

able r ve Income provi

stock stoc e

deb sionk

t（III）Profit -899621353.3

-899621353.37 -167353185.37 -1066974538.74

allotment 7

1.Providing of

surplus reserves

2.Providing of

common risk

provisions

3．Allotment to

-882320185.1

the owners (or -882320185.17 -167353185.37 -1049673370.547

shareholders)

4．Other -17301168.20 -17301168.20 -17301168.20

(IV) Internal

transferring of

owners’ equity

1. Capitalizing of

capital reserves

(or to capital

The first half year of 2020

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Less

Com

Items : Specia MinorOther mon Total of

Share SusPreferr Capital Shar lized Surplus

shareholders’

tain Othe Comprehensi risk Retained profit Other Subtotal

owners’equity

Capital ed reserves es in reserv reserves

equity

able r ve Income provi

stock stoc e

deb sionk

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

The first half year of 2020

Owner’s equity Attributable to the Parent Company

Other Equity

instrument Less

Com

: Specia MinorItems Other mon Total of

Share Sus Capital Shar lized Surplus shareholders’Preferr

tain Othe Comprehensi risk Retained profit Other Subtotal

owners’equity

Capital ed reserves es in reserv reserves

equity

able r ve Income provi

stock stoc e

deb sionk

(V). Special

reserves

1. Provided this

year

2．Used this term（VI）Other 6722106.00 6722106.00 6458494.00 13180600.00

IV. Balance at the 20908061 310073923 1074553052.8 9545164717.238280420.37 3040785883.15 2071018735.59 11616183453.23

end of this term 26.00 5.31 1 64

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

Amount in this period

In RMB

The first half year of 2021

Other Equity instrument

Less:

Items Other SpecializPreferr Sust Capital Shares Surplus Total of owners’

Share capital Comprehensive ed Retained profit Other

ed aina Other reserves in reserves equity

Income reserve

stock ble stock

debt

I.Balance at the end 2090806126.0 938969546. 987813698.0

302895877.65 3667543163.36 7988028411.87

of last year 0 79 7

Add: Change of

accounting -433859.42 -433859.42

policy

Correcting of

previous errors

Other

II.Balance at the

2090806126.0 938969546. 987813698.0

beginning of current 302895877.65 3667109303.94 7987594552.45

0 79 7

year

III.Changed in the

-3778219.25 -35057445.36 339473446.49 300637781.88

current year

（I）Total

comprehensive -35057445.36 947898029.16 912840583.80

income

The first half year of 2021

Other Equity instrument

Less:

Items Other SpecializPreferr Sust Capital Shares Surplus Total of owners’

Share capital Comprehensive ed Retained profit Other

ed aina Other reserves in reserves equity

Income reserve

stock ble stock

debt

(II) Investment or

decreasing of capital

by owners

1．Ordinary Shares in

vested by shareholder

2．Holders of other e

quity instruments inv

ested capital

3.Amount of shares

paid and accounted

as owners’ equity

4．Other（III）Profit

-608424582.67 -608424582.67

allotment

1.Providing of

surplus reserves

2．Allotment to the

owners (or -608424582.67 -608424582.67

shareholders)

The first half year of 2021

Other Equity instrument

Less:

Items Other SpecializPreferr Sust Capital Shares Surplus Total of owners’

Share capital Comprehensive ed Retained profit Other

ed aina Other reserves in reserves equity

Income reserve

stock ble stock

debt

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

The first half year of 2021

Other Equity instrument

Less:

Items Other SpecializPreferr Sust Capital Shares Surplus Total of owners’

Share capital Comprehensive ed Retained profit Other

ed aina Other reserves in reserves equity

Income reserve

stock ble stock

debt

6．Other

(V) Special reserves

1. Provided this year

2．Used this term（VI）Other -3778219.25 -3778219.25

IV. Balance at the 2090806126.0 935191327. 987813698.0

267838432.29 4006582750.43 8288232334.33

end of this term 0 54 7

Amount in last year

In RMB

The first half year of 2020

Other Equity

instrument

Speci

Items OtherShare Pref Capital alized Retained Total of owners’

Less: Shares in stock Comprehensive Surplus reserves Other

Capital erre Sust Othe reserves reserv profit equity

d aina Income

r e

stoc ble

k debt

I.Balance at 2090

2974458 3710584722

the end of last 80612 382193344.90 894580785.25 10052623675.76

696.93 .68

year 6.00

Add: Change

accounti

policy

Correcting of

errors

Other

II.Balance at2090

the beginning 2974458 3710584722

80612 382193344.90 894580785.25 10052623675.76

of current 696.93 .68

6.00

year

III.Changed 3954180. -143912924.53 -569975319. -709934064.49

in the current 00 96

year

（I）Total

312344865.2

comprehensiv -143912924.53 168431940.681

e income

(II)

Investment or

decreasing of

capital by

owners

1．Ordinary S

hares investe

d by sharehol

ders

2．Holders of

other equity i

nstruments in

vested capital

3.Amount of

shares paid

and

accounted as

owners’

equity

4．Other（III）Profit -882320185.-882320185.17

allotment 17

1.Providing

of surplus

reserves

2．Allotment

to the owners -882320185.-882320185.17

(or 17

shareholders)

3．Other

(IV) Internal

transferring

of owners’

equity

1.Capitalizing

of capital

reserves (or

to capital

shares)

2.Capitalizing

of surplus

reserves (or

to capital

shares)

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

earnings

6．Other

(V) Special

reserves

1. Provided

this year

2．Used this

term

3954180.（VI）Other 3954180.0000

IV. Balance at 2090

2978412 3140609402

the end of 80612 238280420.37 894580785.25 9342689611.27

876.93 .72

this term 6.00

III. Company Profile

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

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

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

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

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

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

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

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

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

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

RMB 87.008 million to subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities

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

person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co. Ltd.in June 1996.3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval

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

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

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

1996.4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic of

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

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

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

3.3-for-10 basis.6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and No.487 document the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term of

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

RMB 1 in January 1998.7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant

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

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

shares at the price of RMB 11 per Right.73822250 ordinary shares were actually placed to all .8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH

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

Ltd. (Group Co.) for holding and management without compensation.9.Pursuant to the approval of Shenzhen Stock Exchange 53.0205 million staff shares of the Company (132722

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

2001.10.In accordance with the resolutions of 2000 annual shareholders’ general meeting the Company capitalized

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

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

22 2001.11 ． On March 8 2004As approved by China Securities Regulatory Commission by document

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

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

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

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

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

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

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

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

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

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

Fuxing Yalian Investment Co.Ltd Tibet Yinyue Investment Management Co.Ltd and GF Securities Co.Ltd.The issuance of shares have been registered on July 7 2016 the new shares will be listed on July 8 2016.2. Company's registered place and headquarters address

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

3. Business nature and main business activities

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

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

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

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

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

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

Jingzhu Expressway Guangzhu section investment in technologycal industries and provision of relevant

consultation while investing in Shenzhen Huiyan Expressway Co. Ltd.Guangdong Jiangzhong Expressway Co. Ltd. Zhaoqing Yuezhao Expressway Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd. Guangdong Yuepu Small Refinancing

Co. Ltd.Guangdong Guangle Expressway Co.Ltd.， Guoyuan Securities Co. Ltd.and Hunan Lianzhi TechnologyCo. Ltd.4. Scope and changes of consolidated financial statements in the current period

(1) Scope of current consolidated financial statements

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

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

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

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

None

5. Approval and submission date of financial report

The financial statements have been authorized for issuance by the 21st meeting of the Ninth Board of Directors of

the Group on August 26 2021.IV. Basis for the preparation of financial statements

1.Preparation basis

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

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

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

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

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

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

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

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

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

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

2.Continuation

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

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

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

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

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

position business result and cash flow of the Company as of June 30 2021 and from January to June 2021. In

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

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

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

China Securities Regulatory Commission (CSRC) in 2014.2. Accounting period

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

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

calendar year from January 1 to December 31.3.Operating cycle

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

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

as a criterion for liquidity classification of assets and liabilities.4.Standard currency for bookkeeping

The Company adopts CNY to prepare its functional statements.5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same

Control

1.Business Combinations under the Same Control

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

invested party.6. Compilation method of consolidated financial statements

(1) Consolidation scope

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

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

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

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

investee(s) structured subjects etc.).

(2) Compilation method of consolidated financial statements

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

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

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

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

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

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

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

periods of the parent company before combination.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

according to the above accounting policy when the control right over the original subsidiary is lost.7.Joint venture arrangements classification and Co-operation accounting treatment

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

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

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

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

Company has rights to the net assets of the arrangement.

(1) Identification of joint venture arrangement

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

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

arrangement.

(2) Reassessment

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

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

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

arrangement has changed.

(3) Accounting treatment of participants in joint operation

① Accounting treatment of the joint venture in joint operation

A. General accounting principles

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Standards for Business Enterprises No.13-Contingencies.B. Accounting treatment for the joint venture to invest or sell assets that do not constitute business.When the joint venture invests or sells assets for joint operation (except that the assets constitute business)

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

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

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

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

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

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

business

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

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

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

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

belongs to other participants in the joint operation shall be recognized.D. Accounting treatment of the joint venture's share of the interests of the joint operation that constitutes the

business

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

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

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

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

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

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

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

participants introduce the existing business the joint operation constitutes business when it is established.② Accounting principles for participants who do not enjoy joint control over joint operations

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

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

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

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

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

enterprises.

(4) Accounting treatment of participants in a joint venture

In a joint venture the participants shall account for their investment in the joint venture in accordance with

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

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

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

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

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

Measurement of Financial Instruments.8.Recognition Standard of Cash & Cash Equivalents

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

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

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

change.9.Foreign Currency Transaction

(1) Foreign currency business

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

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

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

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

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

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

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

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

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

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

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

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

the capitalization conditions.

(2) Translation of foreign currency financial statements

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

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

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

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

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

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

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

financial statements shall be handled according to the above provisions.10.Financial instruments

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

agreements.

（1）Classification recognition and measurement of financial assets

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

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

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

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

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

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

initial recognition amount.①Financial assets measured at amortized cost

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

comprehensive income and not be included in current profit and loss.③Financial assets measured at fair value and changes included in current profits and losses

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

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

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

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

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

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

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

（2）Classification recognition and measurement of financial liabilities

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

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

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

relating to other financial liabilities are included in the initial recognition amounts.1 Financial liabilities measured by the fair value and the changes recorded in profit or loss

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

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

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

their changes are recorded in the current profit or loss

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(4) Termination confirmation of financial liabilities

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

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

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

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

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

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

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

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

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

and losses of the current period.

（5）Offsetting financial assets and financial liabilities

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

values are not available or are not practicable.

（7）Equity instruments

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

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

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

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

Company's equity instruments during the period of their existence shall be treated as profit distribution.11. Impairment of financial instruments

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

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

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

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

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

(1) Method of confirming impairment provision

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

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

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

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

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

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

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

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

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

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

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

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

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

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

instruments with low credit risk on the balance sheet date.(2) Criteria for judging whether credit risk has increased significantly since the initial recognition

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

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

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

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

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

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

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

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

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

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

(4) Accounting treatment of impairment of financial assets

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

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

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

provision the difference is deemed as impairment profit.

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

①Receivable Account and Contract assets

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

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

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

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

different portfolios based on their credit risk characteristics:

Items Basis for determining combination:

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

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

specifically as follows：

Aging Proportion （%）

Within 1 year（Including 1 year） 0

1-2 years 10

2-3 years 30

3-4 years 50

4-5 years 90

Over 5 years 100

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

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

contract assets.②Other receivable

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

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

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

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

Items Basis for determining combination:

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

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

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

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

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

other combinations is aging analysis and the accrual proportion is the same as accounts receivable.③ Creditor's rights investment

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

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

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

Company adopts the method of evaluating credit risk with individual assets for creditor's rights investment.12.Inventory

1.Investories class:

The company’s stocks can be classified as: raw materials etc.2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the

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

(3) Measurement of ending inventory

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

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

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

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

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

upon completion estimated sales expenses and related taxes and fees.4. Physical inventories are managed by the perpetual inventory taking system.13.Contract assets

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

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

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

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

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

method of expected credit loss of contract assets.14. Long-term equity investments

(1) Initial measurement

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

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

determined in accordance with the following provisions:

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

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

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

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

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

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

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

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

distinguishing the following situations:

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

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

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

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

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

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

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

occur;

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

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

combination cost can be reliably measured they will be included in the combination cost.② Except for the long-term equity investment formed by business combination the initial investment cost

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

provisions:

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

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

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

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

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

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

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

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

long-term equity investment.

(2) Subsequent measurement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

accounted by equity method when disposing of the investment it adopts the same basis as the investee's direct

disposal of related assets or liabilities and accounts for the part originally included in other comprehensive

income according to the corresponding proportion.

(3) Basis to determine joint control over and significant influence on the investee

Joint control refers to the common control of an arrangement in accordance with the relevant agreement and

the relevant activities of such arrangement must be unanimously agreed by the participants who share the control

rights before making decisions. Significant influence means that the investor has the right to participate in the

decision-making on the financial and operating policies of the investee but cannot control or jointly control the

formulation of these policies with other parties. When determining whether the investee can be controlled or exert

significant influence the potential voting rights factors such as current convertible bonds and current executable

warrants of the investee held by the Company and other parties shall be considered at the same time.15.Investment Property

The measurement mode of investment property

The measurement by the cost method

Depreciation or amortization method

Investment property is held to earn rentals or for capital appreciation or for both. Investment property

includes leased or ready to transfer after capital appreciation land use rights and leased buildings.

（1）The measurement mode of investment property

①Depreciation or amortization method

The estimated service life net salvage value rate and annual depreciation (amortization) rate of investment

real estate are listed as follows:

Type Estimated service lifeEstimated net salvageAnnual depreciation

(years) value rate (amortization) rate

Land use right Remaining useful life

Houses and buildings 20-30 years 3%-10% 3%-4.85%

② Impairment test method and accounting treatment method

See "30. Asset Impairment" for details of impairment test methods and impairment provision accrual

methods of investment real estate.

(2) Conversion of investment real estate

The Company has conclusive evidence that the use of real estate has changed. When converting investment

real estate into self-use real estate or inventory the fair value on the day of conversion is taken as the book value

of self-use real estate and the difference between fair value and original book value is included in current profits

and losses. When self-use real estate or inventory is converted into investment real estate measured by fair value

model the investment real estate is priced according to the fair value on the conversion day. If the fair value on

the conversion day is less than the original book value the difference is included in the current profits and losses;

If the fair value on the conversion date is greater than the original book value the difference shall be included in

other comprehensive income.16.Fixed assets

（1）Confirmation conditions

The Company's fixed assets refer to tangible assets held for the production of commodities provision of

labor services leasing or operation management which have a service life of more than one year and whose

economic benefits are likely to be included into the Company and whose costs can be reliably measured.（2）Depreciation method

①The Company's fixed assets include roads and bridges houses and buildings machinery and equipment

electronic equipment transportation tools and other equipment.Except for the fixed assets that have been fully depreciated and continue to be used the depreciation of fixed

assets is classified and accrued by the life average method and workload method and the depreciation rate is

determined according to the category of fixed assets estimated service life and estimated net salvage value rate.②For 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.The useful life residual value rate and annual depreciation rate of various fixed assets are listed as follows:

Depreciation Expected useful Residual rate Annual depreciation

Type

method life(Year) （%） rate(%)

Highway and Bridge

Including：Guangfo Expressway Working flow 28 years 0%basis

Fokai Expressway-Xiebian to Sanbao Section Working flow 40 years 0%

basis

Fokai Expressway-Sanbao to Shuikou Section Working flow 47.5 years 0%

basis

Working flow 30 years 0%

Jingzhu Expressway Guangzhu Section

basis

Working flow 23 years 0%

Guanghui Expressway Co. Ltd.basis

House Building The straight-line 20-30 years 3%-5% 3.17%-4.85%

method

The straight-line 3-10 years 3%-5% 9.50%-32.33%

Machine Equipment

method

The straight-line 5-8 years 3%-5% 11.88%-19.40%

Transportation Equipment

method

The straight-line 5 years 3%-5% 19.00%-19.40%

Other

method

(3) Identification basis valuation and depreciation method of fixed assets leased by financing

When the leased fixed assets have substantially transferred all risks and rewards related to the assets the

Company recognizes that the lease of the fixed assets is a financial lease.The cost of fixed assets acquired by finance lease shall be determined according to the lower of the fair value

of the leased assets on the lease start date and the present value of the minimum lease payment.The depreciation policy consistent with their own depreciated assets is adopted for fixed assets leased by

financing. If it can be reasonably determined that the ownership of the leased asset is acquired at the expiration of

the lease term depreciation shall be accrued within the serviceable life of the leased asset; If it is impossible to

reasonably determine that the ownership of the leased asset can be acquired at the expiration of the lease term

depreciation shall be accrued within the shorter period of the lease term and the serviceable life of the leased asset.17.Construction-in process

The construction in progress of the Company refers to the plant equipment and other fixed assets under

construction which are accounted for in detail according to the project and recorded according to the actual cost

including direct construction and installation costs and borrowing costs that meet the capitalization conditions.When the construction in progress reaches the scheduled usable state it will be carried over to fixed assets by

temporary estimation stop interest capitalization and start to accrue depreciation according to the determined

depreciation method of fixed assets. After the project is completed and final accounts are made the original

estimated amount will be adjusted according to the amount of final accounts but the original accrued depreciation

amount will not be adjusted.18.Borrowing cost

(1) Recognition principle and capitalization period of borrowing cost capitalization

Borrowing costs incurred by the Company can be directly attributed to the purchase construction or

production of assets that meet the capitalization conditions and shall be capitalized when the following conditions

are met at the same time and included in the relevant asset costs:

① Production and expenditure have occurred;

② Borrowing costs have already occurred;

③ The purchase construction or production activities required to make the assets reach the intended usable

or saleable state have started.Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are

abnormally interrupted in the process of purchase construction or production and the interruption time

continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as

expenses and included in the current profits and losses until the purchase and construction of assets or the

resumption of production activities. If the interruption is a necessary procedure for the purchased built or

produced assets that meet the capitalization conditions to reach the intended usable or saleable state the

capitalization of borrowing costs will continue.Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased built

or produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as

expenses in the current period.

(2) Calculation method of capitalization amount of borrowing costs

Where a special loan is borrowed for the purpose of purchasing building or producing assets that meet the

capitalization conditions it shall be determined by deducting the interest income obtained by depositing unused

loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the

investment income obtained by temporary investment.If the general loan is occupied for the purpose of purchasing building or producing assets that meet the

capitalization conditions the interest amount of the general loan that should be capitalized shall be calculated and

determined according to the weighted average of the accumulated asset expenditure exceeding the special loan

portion multiplied by the capitalization rate of the occupied general loan. Capitalization rate is calculated and

determined according to the weighted average interest rate of general borrowings.19.Intangible assets

(1) Pricing method useful life and impairment test

The Company recognizes the identifiable non-monetary assets owned or controlled by the enterprise as

intangible assets which have no physical form and the estimated future economic benefits related to the assets

are likely to flow into the enterprise and the cost of the assets can be reliably measured.The intangible assets of the Company are recorded according to the amount actually paid or the determined

value.

(1) If the purchase price of intangible assets exceeds the normal credit conditions which is of financing

nature in essence the cost of intangible assets is determined based on the present value of the purchase price. The

difference between the actual paid price and the present value of the purchase price shall be included in the current

profits and losses within the credit period except that it should be capitalized according to the regulations.

(2) The intangible assets invested by investors shall be taken as the cost according to the value agreed in the

investment contract or agreement unless the value agreed in the contract or agreement is unfair.

(3) The expenditure of internal research and development projects of the Company is divided into research

stage expenditure and development stage expenditure. Research refers to an original and planned investigation to

acquire and understand new scientific or technical knowledge. Development refers to the application of research

results or other knowledge to a plan or design to produce new or substantially improved materials devices and

products before commercial production or use.Expenditures during the research phase of internal research and development projects are included in the

current profits and losses when they occur. Expenditures in the development stage of internal research and

development projects that meet the following conditions are recognized as intangible assets: it is technically

feasible to complete the intangible assets so that they can be used or sold; Have the intention to complete the

intangible assets and use or sell them; The ways in which intangible assets generate economic benefits including

those that can prove that there is a market for products produced by using the intangible assets or that the

intangible assets themselves exist in the market and that the intangible assets will be used internally should prove

their usefulness; Have sufficient technical financial and other resources to complete the development of the

intangible assets and have the ability to use or sell the intangible assets; Expenditures attributable to the

development stage of the intangible assets can be measured reliably.Intangible assets with limited service life of the Company shall be amortized on average within the service

life since the intangible assets are available for use. Intangible assets with uncertain service life are not amortized.The amortization amount of intangible assets is the amount after deducting the estimated salvage value from its

cost. For intangible assets for which impairment provision has been made the accumulated amount of impairment

provision for intangible assets has to be deducted.The amortization period of intangible assets with limited service life is as follows:

Type Amortization period

Land use right Remaining useful life

Software 3-5 years

Type Amortization period

Toll road franchises Operating period for residual charges

20. Long-term amortizable expenses

Long-term deferred expenses are recorded according to the actual amount incurred and are amortized

equally in installments during the benefit period or within the prescribed period. If the long-term prepaid expense

item cannot benefit the future accounting period the amortized value of the item that has not been amortized will

be transferred to the current profits and losses.21. Contract liabilities

Contract liabilities refer to the obligation of the Group to transfer goods to customers for the received or

receivable consideration from customers. If the customer has paid the contract consideration or the Group has

obtained the unconditional collection right before the Group transfers the goods to the customer the Group will

list the received or receivable amount as the contract liability at the earlier of the actual payment made by the

customer and the due date for payment. Contract assets and liabilities under the same contract are listed in net

amount while contract assets and liabilities under different contracts are not offset.22. Employee Benefits

Employee compensation refers to various forms of remuneration or compensation given by the Company for

obtaining services provided by employees or dissolving labor relations. Employee compensation includes

short-term salary post-employment benefits dismissal benefits and other long-term employee benefits.Benefits provided by the Company to spouses children dependents survivors of deceased employees and

other beneficiaries of employees are also employee compensation.

（1）Accounting methods of short-term benefits

During the accounting period when employees provide services the Company recognizes the actual short-term

salary as a liability which is included in the current profits and losses except that other accounting standards

require or allow it to be included in the cost of assets.

(2) Accounting methods for post-employment benefits

The Company classifies the post-employment benefit plan into defined contribution plan and defined benefit

plans. Post-employment benefit plan refers to the agreement reached between the Company and employees on

post-employment benefits or the rules or measures formulated by the Company to provide post-employment

benefits to employees among which the set deposit plan refers to the post-employment welfare plan in which the

Company no longer undertakes further payment obligations after paying a fixed fee to an independent fund;

Defined benefit plans refers to the post-employment benefit plan except the set-up deposit plan.

(3) Accounting Treatment Method of Demission Welfare

If the Company provides dismissal benefits to employees the employee compensation liabilities arising from

the dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: when

the company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relations

plan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganization

involving the payment of dismissal benefits.（4）Other long-term employee benefits

If other long-term employee benefits provided by the Company to employees meet the conditions of the set

deposit plan they shall be handled according to the accounting policies of the set deposit plan mentioned above;

Otherwise the net liabilities or net assets of other long-term employee benefits shall be recognized and measured

in accordance with the accounting policies of defined benefit plans mentioned above.23.Estimated liabilities

(1) Recognition criteria of estimated liabilities

If the obligations related to contingencies stipulated by the Company meet the following conditions at the

same time they are recognized as estimated liabilities:

① The obligations are the current obligations undertaken by the enterprise;

② Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;

③ The amount of the obligations can be measured reliably.

(2) Measurement method of estimated liabilities

Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill

relevant current obligations. There is a continuous range of required expenditure and the possibility of occurrence

of various results in this range is the same and the best estimate is determined according to the intermediate value

in this range. In other cases the best estimates are treated as follows:

① Contingencies involving a single item shall be determined according to the most probable amount.② Contingencies involving multiple items shall be calculated and determined according to various possible

results and relevant probabilities.When determining the best estimate the risk uncertainty and time value of money related to contingencies

shall be considered comprehensively. If the time value of money has great influence the best estimate is

determined by discounting the related future cash outflow.If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be

compensated by a third party the compensation amount can be recognized as an asset only when it is basically

confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the

estimated liabilities.The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is

conclusive evidence that the book value cannot truly reflect the current best estimate the book value shall be

adjusted according to the current best estimate.24. Revenues

Accounting policies adopted for income recognition and measurement

(1) Revenue recognition principle

Since the starting date of the contract the company shall evaluate the contract identifies each individual

performance obligation contained in and determines whether each individual performance obligation is

performed within a certain period of time or at a certain point of time.The performance obligation is defined as fulfillment within a certain period of time if one of the following

conditions is met otherwise it is defined as fulfilled at a certain point in time: ① The customer obtains and

consumes the economic benefits brought by the company's performance while the company performs the contract;

② The customer can control the goods under manufacturing or services during the company's performance; ③

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: ① The company has the current right to receive payment for the product that is the customer

has the current payment obligation for the product; ② The company has transferred the legal ownership of the

product to the customer that is the customer has the legal ownership of the product; ③ The company has

transferred the physical product to the customer that is the customer has physically taken possession of the

product; ④ 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; ⑤ The

customer has accepted the product; ⑥ Other signs that the customer has obtained control of the product.

(2) Principle of revenue measurement

① 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.② 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.③ 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.④ If the contract contains two or more performance obligations the company shall on date of the contract

allocate the transaction price to each individual obligation item in accordance with the relative proportion of the

separate selling price of promised goods.The adoption of different business models in similar businesses leads to differences in accounting policies for

revenue recognition

(3) Specific methods of revenue recognition

(1) Toll service fee income

The toll income of roads and bridges is determined according to the amount collected and receivable by

vehicles when passing through.

(2) Income from providing labor services

For services started and completed in the same fiscal year income is recognized when the services are

completed. If the beginning and completion of labor services belong to different fiscal years the Company shall

on the balance sheet date recognize the related labor income by the percentage of completion method provided

that the result of the labor service transaction can be reliably estimated. When the following conditions can be

satisfied the results of the transaction can be reliably estimated: ① the total income and total cost of labor

services can be reliably measured; ② the economic benefits related to the transaction can flow into the enterprise;

③ the degree of completion of labor services can be reliably determined.For services started and completed in the same fiscal year income is recognized when the services are

completed. If the beginning and completion of labor services belong to different fiscal years the Company shall

on the balance sheet date recognize the related labor income by the percentage of completion method provided

that the result of the labor service transaction can be reliably estimated. When the following conditions can be

satisfied the results of the transaction can be reliably estimated: ① the total income and total cost of labor

services can be reliably measured; ② the economic benefits related to the transaction can flow into the

enterprise;

If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably the

following situations shall be dealt with respectively:

① If the labor cost already incurred is expected to be compensated the income from the service shall be

recognized according to the amount of the labor cost already incurred and the labor cost shall be carried over at

the same amount.② If the incurred labor cost is not expected to be compensated the incurred labor cost shall be included in

the profits and losses of the current period and the income from the provision of labor service shall not be

recognized.When the contracts or agreements signed between the Company and other enterprises include selling goods

and providing services if the part for selling goods and the part for providing services can be distinguished and

measured separately the part for selling goods will be treated as goods sales and the part for providing services

will be treated as service provision. Sales of goods and services can not be distinguished or although they can be

distinguished they can not be measured separately. All parts for the selling goods and providing services will be

treated as sales of goods.The adoption of different business models in similar businesses leads to differences in accounting policies for

income recognition

25.Contract cost

If the incremental cost incurred by the Company for obtaining the contract is expected to be recovered it

shall be recognized as an asset as the contract acquisition cost. However if the amortization period of the asset

does not exceed one year it will be included in the current profits and losses when it occurs.If the cost incurred for the performance of the contract does not fall within the scope of other accounting

standards for business enterprises other than Accounting Standards for Business Enterprises No.14-Revenue

(Revised in 2017) and meets the following conditions at the same time it will be recognized as an asset for

contract performance cost: ① The cost is directly related to a current or expected contract including direct labor

direct materials manufacturing expenses (or similar expenses) costs explicitly borne by customers and other

costs incurred only because of the contract; ② This cost increases the resources of the Company for fulfilling its

performance obligations in the future; ③ The cost is expected to be recovered.Assets related to the contract cost are amortized on the same basis as the recognition of commodity income

related to the assets and are included in the current profits and losses.26. Government Grants

Government subsidies are recognized when they meet the conditions attached to government subsidies and

can be received.Government subsidies for monetary assets shall be measured according to the amount received or receivable.Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be obtained

reliably it shall be measured according to the nominal amount of 1 yuan.Government subsidies related to assets refer to government subsidies obtained by the Company for

purchasing and building or forming long-term assets in other ways; Otherwise as a government subsidy related to

income.Where the government documents do not specify the object of the subsidy and the subsidy can form

long-term assets the part of the government subsidy corresponding to the value of the assets shall be regarded as

the government subsidy related to the assets and the rest shall be regarded as the government subsidy related to

the income; Where it is difficult to be distinguished government subsidies as a whole are treated as

income-related government subsidies.Government subsidies related to assets offset the book value of related assets or are recognized as deferred

revenue and included in profits and losses by stages according to a reasonable and systematic method within the

service life of related assets. Government subsidies related to income which are used to compensate related costs

or losses that have occurred shall be included in current profits and losses or offset related costs; If they are used

to compensate related costs or losses in later periods they will be included in the deferred revenue and they will

be included in the current profits and losses or offset related costs during the recognition period of related costs or

losses. Government subsidies measured in nominal amount are directly included in current profits and losses. The

Company adopts a consistent approach to the same or similar government subsidy business.Government subsidies related to daily activities according to the essence of economic business are included

in other income or offset related costs. Government subsidies irrelevant to routine activities shall be included into

the non-operating receipt and disbursement.When the recognized government subsidy needs to be returned if the book value of related assets is offset

during initial recognition the book value of assets will be adjusted; If there is a relevant deferred revenue balance

the book balance of the relevant deferred revenue will be offset and the excess will be included in the current

profits and losses; In other cases it is directly included in the current profits and losses.For the discount interest of preferential policy loans if the finance allocates the discount interest funds to the

lending bank the actually received loan amount is taken as the recorded value of the loan and the borrowing cost

is calculated according to the loan principal and preferential policy interest rate. If the finance directly allocates

the discount interest funds to the Company the discount interest will offset the borrowing costs.27.Deferred income tax assets and deferred income tax liabilities

The Company adopts the balance sheet liability method for income tax accounting treatment.

(1) Deferred tax assets

① If there is a deductible temporary difference between the book value of an asset or liability and its tax

basis the deferred income tax assets generated by the deductible temporary difference shall be calculated and

confirmed according to the applicable tax rate during the expected period of recovering the asset or paying off the

liability.② On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be

obtained in the future period to offset the deductible temporary difference the unrecognized deferred income tax

assets in the previous period shall be recognized.③ On the balance sheet date the book value of deferred income tax assets shall be reviewed. If it is unlikely

that enough taxable income will be obtained in the future period to offset the benefits of deferred income tax

assets the book value of deferred income tax assets will be written down. When sufficient taxable income is likely

to be obtained the written-down amount will be reversed.

(2) Deferred income tax liabilities

If there is a taxable temporary difference between the book value of assets and liabilities and their tax basis

the deferred income tax liabilities arising from the taxable temporary difference shall be recognized according to

the applicable tax rate during the expected period of recovering the assets or paying off the liabilities.28.Lease

(1) Lease accounting policy

Lease refers to a contract in which the Company assigns or obtains the right to control the use of one or more

identified assets within a certain period of time in exchange for or payment of consideration. On the start date of a

contract the Company assesses whether the contract is a lease or includes a lease.①The Company as the lessee

A. Initial measurement

At the beginning of the lease period the Company recognizes the right to use the leased asset during the

lease period as a right-of-use asset and recognizes the present value of unpaid lease payments as a lease liability

except for short-term leases and leases of low-value assets. When calculating the present value of lease payments

the Group uses the interest rate implicit in the lease as the discount rate; if the interest rate implicit in the lease

cannot be determined the lessee’s incremental borrowing interest rate is used as the discount rate.B. Follow-up measurement

The Company refers to the " No. 4 Accounting Standards for Business Enterprises—Fixed Assets" related

depreciation provisions for the depreciation of the right-of-use assets (see "This Section V. Important Accounting

Policies and Accounting Estimates-16 Fixed Assets" for details). For the ownership of the leased asset at the end

of the lease term can be reasonably determined the Company shall accrue depreciation during the remaining

useful life of the leased asset. If it is impossible to reasonably determine that the ownership of the leased asset can

be obtained when the lease term expires the Company shall accrue depreciation during the period of which is

shorter of the lease term and the remaining useful life of the leased asset.For lease liabilities the Company calculates its interest expenses during each period of the lease term in

accordance with a fixed periodic interest rate which is included in the current profit and loss or included in the

cost of related assets. Variable lease payments that are not included in the measurement of lease liabilities are

included in the current profit and loss or the cost of related assets when they actually occur.After the start date of the lease term when the actual fixed payment amount changes the estimated amount

payable of the guarantee residual value changes the index or ratio used to determine the lease payment changes

the purchase option the lease renewal option or the evaluation result of the termination option or the actual

exercise situation changes the Company remeasures the lease liability according to the present value of the lease

payment after the change and adjusts the book value of the right-of-use asset accordingly. If the book value of the

right-of-use asset has been reduced to zero but the lease liability still needs to be further reduced the Company

will include the remaining amount in the current profit and loss.C. Short-term leases and low-value asset leases

For short-term leases (leases whose lease term does not exceed 12 months from the lease start date) and

low-value asset leases the Company adopts a simplified approach and does not recognize the right-of-use assets

and lease liabilities yet uses the straight-line method during each period of the lease term or other systematic and

reasonable methods to include the lease payment in the relevant asset cost or current profit and loss.②The Company as the lessor

Based on the nature of the transaction the Company divides leases into financial leases and operating leases

on the lease start date. Finance lease refers to a lease that has substantially transferred almost all the risks and

rewards related to the ownership of the leased asset. Operating leases refer to leases other than financial leases.A. Operating lease

The Company will include the assets used for operating leases in the relevant items in the balance sheet

according to the nature of the assets; for operating leases the rents of operating leases shall be recognized as

current profits and losses during each period of the lease period according to the straight-line method; the initial

direct costs incurred shall be included in the current profit and loss; for fixed assets in operating lease assets the

depreciation policy of similar assets is used for depreciation; for other operating lease assets a systematic and

reasonable method is used for amortization; contingent rents are included in current profit and loss when they

actually occur .B. Financial leasing

On the start date of the lease term the Company shall take the sum of the minimum lease receipt amount and

the initial direct expenses on the lease start date as the recorded value of the financial lease receivable and records

the unsecured residual value; Recognize the difference between the sum of the minimum lease payment amount

initial direct expenses and unsecured residual value and its present value as unrealized financing income;

Distribute unrealized financing income in each period of the lease term; Calculate and confirm the financing

income of the current period by using the effective interest rate method; And include contingent rents in current

profits and losses when they actually occur.29. Held-for-sale non-current assets disposal group and termination of operation

(1) Classification and measurement of held-for-sale non-current assets or disposal groups

When the book value is recovered mainly by selling (including the exchange of non-monetary assets with

commercial substance) rather than continuously using a non-current asset or disposal group the non-current asset

or disposal group is classified as held for sale.The above-mentioned non-current assets do not include investment real estate measured by fair value model

biological assets measured by net amount of fair value minus selling expenses assets formed by employee

compensation financial assets deferred income tax assets and rights arising from insurance contracts.The disposal group refers to a group of assets disposed of together by sale or other means in a transaction as

a whole and liabilities directly related to these assets transferred in the transaction. Under certain circumstances

the disposal group includes goodwill obtained in business combination etc.At the same time non-current assets or disposal groups that meet the following conditions are classified as

held for sale: according to the practice of selling such assets or disposal groups in similar transactions the

non-current assets or disposal groups can be sold immediately under the current situation; The sale is very likely

to happen that is a resolution has been made on a sale plan and a firm purchase commitment has been obtained

and it is expected that the sale will be completed within one year. If the control over subsidiaries is lost due to the

sale of investments in subsidiaries whether or not the Company retains part of the equity investments after the

sale when the investment in subsidiaries to be sold meets the classification conditions of held-for-sale the

investment in subsidiaries will be classified as held-for-sale as a whole in individual financial statements and all

assets and liabilities of subsidiaries will be classified as held-for-sale in consolidated financial statements.When the non-current assets or disposal groups held for sale are initially measured or re-measured on the

balance sheet date the difference between the book value and the net amount after deducting the selling expenses

from the fair value is recognized as the asset impairment loss. For the amount of asset impairment loss recognized

for the held-for-sale disposal group the book value of goodwill in the disposal group is offset first and then the

book value of non-current assets in the disposal group is offset proportionally.If the net amount of non-current assets held for sale or disposal group's fair value minus selling expenses

increases on the subsequent balance sheet date the previously written-down amount will be restored and reversed

within the amount of asset impairment loss recognized after being classified as held-for-sale and the reversed

amount will be included in the current profits and losses. The book value of offset goodwill shall not be reversed.Non-current assets held for sale and assets in disposal group held for sale are not depreciated or amortized;

Interest and other expenses of liabilities in disposal group held for sale continue to be recognized. All or part of

the investments of affiliated enterprises or joint ventures classified as held-for-sale shall be accounted for by the

equity method for those classified as held for sale while those retained (not classified as held-for-sale) shall

continue to be accounted for by the equity method; When the Company loses significant influence on the affiliated

enterprise and joint venture due to the sale it shall stop using the equity method.If a certain non-current asset or disposal group is classified as held for sale but the classification conditions

of held for sale are no longer met the Company will stop classifying it as held for sale and measure it according to

the lower of the following two amounts:

① For the book value of the asset or disposal group before it is classified as held for sale the amount

adjusted according to the depreciation amortization or impairment which should have been recognized without

being classified as held for sale;

② Recoverable amount.

(2) Termination of operation

Termination of operation refers to the components that have been disposed of by the Company or classified

as held for sale by the Company and can be distinguished separately which meet one of the following conditions:

① This component represents an independent main business or a separate main business area.② This component is part of an associated plan to dispose of an independent main business or a separate

main business area.③ This component is a subsidiary acquired for resale.

(3) Presentation

In the balance sheet the Company lists the non-current assets held for sale or the assets in the disposal group

held for sale as "assets held for sale" and lists the liabilities in the disposal group held for sale as "liabilities held

for sale".The Company separately lists the profit and loss from continuing operations and the profit and loss from

termination of operations in the income statement. For non-current assets or disposal groups held for sale that do

not meet the definition of termination of operation the impairment loss reversal amount and disposal profit and

loss are listed as the profit and loss of continuing operations. Operating profit and loss and disposal profit and loss

such as impairment loss and reversal amount of discontinued operation are listed as discontinued operation profit

and loss.A disposal group that intends to terminate its use instead of selling and meets the conditions of relevant

components in the definition of operation termination shall be listed as operation termination from the date when

it ceases to use.For the discontinued operations listed in the current period in the current financial statements the

information originally listed as the profit and loss of continuing operations is re-listed as the profit and loss of

discontinued operations in the comparable accounting period. If the termination of operation no longer meets the

classification conditions for held-for-sale the information originally listed as the profit and loss of operation

termination in the current financial statements will be listed again as the profit and loss of continuing operation in

the comparable accounting period.30. Impairment of assets

The following signs indicate that the assets may be impaired:

(1) The market price of assets fell sharply in the current period which was significantly higher than the

expected decline due to the passage of time or normal use.

(2) The economic technical or legal environment in which the Company operates and the market in which

the assets are located have undergone major changes in the current period or in the near future which will have

adverse effects on the Company.

(3) The market interest rate or other market return on investment has increased in the current period which

affects the discount rate used by enterprises to calculate the present value of the estimated future cash flow of

assets resulting in a significant decrease in the recoverable amount of assets.

(4) There is evidence that the assets are outdated or their entities have been damaged.

(5) Assets have been or will be idle terminated or planned to be disposed of in advance.

(6) The evidence reported by the company shows that the economic performance of assets has been or will

be lower than expected such as the net cash flow created by assets or the realized operating profit (or loss) is far

lower than the expected amount.

(7) Other indications that assets may have been impaired.

On the balance sheet date the Company judges various assets that are applicable to the Accounting Standards

for Business Enterprises No.8-Impairment of Assets such as long-term equity investment fixed assets

engineering materials construction in progress intangible assets (except those with uncertain service life) and

conducts impairment test when there are signs of impairment-estimating their recoverable amount. The

recoverable amount is determined by the higher of the net amount of the fair value of the asset minus the disposal

expenses and the present value of the estimated future cash flow of the asset. If the recoverable amount of an asset

is lower than its book value the book value of the asset shall be written down to the recoverable amount and the

written-down amount shall be recognized as the asset impairment loss which shall be included in the current

profits and losses and the corresponding asset impairment reserve shall be accrued at the same time.If there are signs that an asset may be impaired the Company usually estimates its recoverable amount on the

basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset the recoverable

amount of the asset group is determined based on the asset group to which the asset belongs.Asset group is the smallest asset portfolio that can be recognized by the Company and its cash inflow is

basically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. The

identification of asset group is based on whether the main cash inflow generated by asset group is independent of

other assets or cash inflow of asset group.The Company conducts impairment test every year for intangible assets with uncertain goodwill and service

life formed by business combination and not yet in serviceable condition regardless of whether there is any sign

of impairment. The impairment test of goodwill is carried out in combination with its related asset group or

combination of asset groups.Once the asset impairment loss is confirmed it will not be reversed in the following accounting period.31. Fair value measurement

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

transaction that occurs on the measurement date.The Company measures related assets or liabilities at fair value assuming that the orderly transaction of

selling assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is no

major market the Company assumes that the transaction will be conducted in the most favorable market of related

assets or liabilities. The main market (or the most favorable market) is the trading market that the Company can

enter on the measurement day. The Company adopts the assumptions used by market participants to maximize

their economic benefits when pricing the assets or liabilities.When measuring non-financial assets at fair value the ability of market participants to use the assets for the

best purpose to generate economic benefits or the ability to sell the assets to other market participants for the best

purpose to generate economic benefits shall be considered.The Company adopts the valuation technology which is applicable in the current situation and supported by

sufficient available data and other information and gives priority to the relevant observable input values and only

uses the unobservable input values when the observable input values are unavailable or impractical.For assets and liabilities measured or disclosed at fair value in financial statements it shall determine the fair

value level according to the lowest level input value which is of great significance to fair value measurement as a

whole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained

on the measurement date in an active market; The second-level input value is directly or indirectly observable

input values of related assets or liabilities except the first-level input value; The third level input value is the

unobservable input value of related assets or liabilities.On each balance sheet date the Company reassesses the assets and liabilities recognized in the financial

statements that are continuously measured at fair value to determine whether there is a conversion between the

fair value measurement levels.32.Change of main accounting policies and estimations

(1)Change of main accounting policies

Accounting policy changes caused by the implementation of the new lease standard

The Ministry of Finance issued the " No. 21 Accounting Standards for Business Enterprises-Leases (2018

Revision)" (No. 35-[2018] Cai Kuai) (hereinafter referred to as the "New Lease Standards") on December 7 2018.After a resolution approved in the sixteenth meeting of the ninth term of the board of directors of the Company on

March 25 2021 the Company will implement the aforementioned new lease standards from January 1 2021 and

make changes to relevant accounting policies in accordance with the provisions of the new lease standards.According to the provisions of the new lease standard the Company reassess whether the contract that exists

before the first implementation date is a lease or includes a lease. For the lease contract in which it’s the lessee

the Company chooses to adjust only the cumulative impact of the lease contract that has not been completed on

January 1 2021. The amount of cumulative impact of the first implementation adjusts the amount of retained

earnings and other related items in the financial statements at the beginning of the first implementation period (ie

January 1 2021) and no adjustment will be made to the comparable period information. For the operating lease

on the first implementation date the lessee measures the lease liability based on the present value of the remaining

lease payments discounted at the incremental borrowing rate on the first implementation date.The Company chooses an amount equal to the lease liability according to each lease and measures theright-of-use assets according to necessary adjustments based on the prepaid rent. And in accordance with the “No.8 Accounting Standards for Business Enterprises-Asset Impairment" the impairment test of the right-of-use assets

is carried out and the corresponding accounting treatments are carried out.The impact of the implementation of the above accounting policy changes on the financial statements on

January 1 2021 is as follows:

December 312020（Before change） January 12021（After change）

Items Consolidated

Consolidated statements Parent Company Parent Company

statements

Prepayments 3607538.01 2181215.03 2831124.98 1404802.00

Long term share

2382381165.60 5529362536.53 2381947306.18 5528928677.11

equity investment

Use right assets 23154055.78 21927040.99

Long-germ expenses

3462122.00 2454375.00

to be amortized

Lease liability 12245214.89 12133352.33

Non-current liability

266328017.47 190331701.48 275452698.33 199348977.11

due within 1 year

Retained profit 3725679319.35 3667543163.36 3725245459.93 3667109303.94

（2）Significant estimates changes

The Company held the nineteenth (temporary) meeting of the ninth board of directors on June 28 2021. At

the meeting the "Proposal on Changes in Accounting Estimates" was passed and the company agreed to the

depreciation period of the Sanbao-Shuikou section of the expressway has been changed and the depreciation

period has been extended to June 14 2044. For this matter the Company adopted the future application method.This change in accounting estimates resulted in a decrease of 15277465.25 yuan and 291029.46 yuan

respectively in the current period of fixed asset depreciation and intangible asset amortization compared with the

original accounting estimates thus the operating costs decreased by 15568494.71 yuan and the net profit

increased by 11676371.03 yuan and the net profit attributable to shareholders of the parent company increased

by RMB 11676371.03. The impact on the financial statement items is as follows:

Time point at Affected report Impact amount

Contents and causes of

Approval which the items

changes in accounting

procedure application

estimates

begins

Guangdong Provincial Fixed assets 15277465.25

Department of Transportation

has approved the extension of Resolution of Intangible assets 291029.46

the charging period for the the board of June 12021 Main business cost -15568494.71

Sanbao-Shuikou section of the directors

Shenyang-Haikou National Income tax 3892123.68

Expressway to June 14 2044. expenses

（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards

Applicable

Whether need to adjust the balance sheet account at the beginning of the year

√ Yes □No

Consolidated balance sheet

In RMB

Amount involved in the

Items December 312020 January 12021

adjustment

Current asset：

Monetary fund 2847398003.89 2847398003.89

Settlement provision

Outgoing call loan

Transactional financial

assets

Derivative financial assets

Notes receivable

Account receivable 168907517.56 168907517.56

Financing of receivables

Prepayments 3607538.01 2831124.98 -776413.03

Insurance receivable

Reinsurance receivable

Amount involved in the

Items December 312020 January 12021

adjustment

Provisions of Reinsurance

contracts receivable

Other account receivable 60925367.64 60925367.64

Including：Interestreceivable

Dividend receivable 2705472.90 2705472.90

Repurchasing of financial

assets

Inventories 53761.06 53761.06

Contract assets 5452813.90 5452813.90

Assets held for sales

Non-current asset due 51745.32 51745.32

within 1 year

Other current asset 27051.69 27051.69

Total of current assets 3086423799.07 3085647386.04 -776413.03

Non-current assets

Loans and payment on

other’s behalf disbursed

Creditor's right investment

Other creditor's right

investment

Long-term receivable

Long term share equity

2382381165.60 2381947306.18 -433859.42

investment

Other equity instruments

1737015528.29 1737015528.29

investment

Other non-current financial

assets

Property investment 3110381.89 3110381.89

Fixed assets 11540075929.69 11540075929.69

Construction in progress 340611095.47 340611095.47

Production physical assets

Oil & gas assets

Use right assets Not applicable 23154055.78 23154055.78

Intangible assets 302381356.52 302381356.52

Amount involved in the

Items December 312020 January 12021

adjustment

Development expenses

Goodwill

Long-germ expenses to be 3462122.00 2454375.00 -1007747.00

amortized

Deferred income tax asset 330755418.39 330755418.39

Other non-current asset 22361861.19 22361861.19

Total of non-current assets 16662154859.04 16683867308.40 21712449.36

Total of assets 19748578658.11 19769514694.44 20936036.33

Current liabilities

Short-term loans 200192500.00 200192500.00

Loan from Central Bank

Borrowing funds

Transactional financial

liabilities

Derivative financial

liabilities

Notes payable

Account payable 369773342.71 369773342.71

Advance receipts 11309007.41 11309007.41

Contract liabilities 309734.51 309734.51

Selling of repurchased

financial assets

Deposit taking and

interbank deposit

Entrusted trading of

securities

Entrusted selling of

securities

Employees’wage payable 16726198.13 16726198.13

Tax payable 217748392.78 217748392.78

Other account payable 1512619359.78 1512619359.78

Including：Interest payableDividend payable 22262804.39 22262804.39

Fees and commissions

payable

Amount involved in the

Items December 312020 January 12021

adjustment

Reinsurance fee payable

Liabilities held for sales

Non-current liability due

266328017.47 275452698.33 9124680.86

within 1 year

Other current liability 648581.64 648581.64

Total of current liability 2595655134.43 2604779815.29 9124680.86

Non-current liabilities：

Reserve fund for insurance

contracts

Long-term loan 4977438800.00 4977438800.00

Bond payable 1426488336.65 1426488336.65

Including：preferred stockSustainable debt

Lease liability Not applicable 12245214.89 12245214.89

Long-term payable 40406172.37 40406172.37

Long-term remuneration

payable to staff

Expected liabilities

Deferred income 89170569.64 89170569.64

Deferred income tax

387103060.74 387103060.74

liability

Other non-current

liabilities

Total non-current liabilities 6920606939.40 6932852154.29 12245214.89

Total of liability 9516262073.83 9537631969.58 21369895.75

Owners’ equity

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stockSustainable debt

Capital reserves 645969210.48 645969210.48

Less：Shares in stockOther comprehensive

302895877.65 302895877.65

income

Amount involved in the

Items December 312020 January 12021

adjustment

Special reserve

Surplus reserves 1167785965.63 1167785965.63

Common risk provision

Retained profit 3725679319.35 3725245459.93 -433859.42

Total of owner’s equity

belong to the parent 7933136499.11 7932702639.69 -433859.42

company

Minority shareholders’

2299180085.17 2299180085.17

equity

Total of owners’ equity 10232316584.28 10231882724.86 -433859.42

Total of liabilities and

19748578658.11 19769514694.44 20936036.33

owners’ equity

Adjustment statement

Parent Company Balance Sheet

In RMB

Amount involved in the

Items December 312020 January 12021

adjustment

Current asset：

Monetary fund 1781764519.09 1781764519.09

Transactional financial

assets

Derivative financial assets

Notes receivable

Account receivable 27004827.41 27004827.41

Financing of receivables

Prepayments 2181215.03 1404802.00 -776413.03

Other account receivable 54148114.53 54148114.53

Including：Interestreceivable

Dividend receivable 2705472.90 2705472.90

Inventories

Contract assets

Assets held for sales

Amount involved in the

Items December 312020 January 12021

adjustment

Non-current asset due 256279340.60 256279340.60

within 1 year

Other current asset 27051.69 27051.69

Total of current assets 2121405068.35 2120628655.32 -776413.03

Non-current assets：

Creditor's right investment 287903684.98 287903684.98

Other Creditor's right

investment

Long-term receivable

Long term share equity

5529362536.53 5528928677.11 -433859.42

investment

Other equity instruments

1737015528.29 1737015528.29

investment

Other non-current financial

assets

Property investment 2858243.64 2858243.64

Fixed assets 6245462940.39 6245462940.39

Construction in progress 43086545.58 43086545.58

Production physical assets

Oil & gas assets

Use right assets Not applicable 21927040.99 21927040.99

Intangible assets 150582241.22 150582241.22

Development expenses

Goodwill

Long-germ expenses to be

amortized

Deferred income tax asset 322365911.10 322365911.10

Other non-current asset 7089990.48 7089990.48

Total of non-current assets 14325727622.21 14347220803.78 21493181.57

Total of assets 16447132690.56 16467849459.10 20716768.54

Current liabilities

Short-term loans 200192500.00 200192500.00

Transactional financial

liabilities

Derivative financial

Amount involved in the

Items December 312020 January 12021

adjustment

liabilities

Notes payable

Account payable 105919984.52 105919984.52

Advance receipts

Contract Liabilities

Employees’ wage

6472802.81 6472802.81

payable

Tax payable 9165801.86 9165801.86

Other account payable 1431814861.38 1431814861.38

Including：Interest payableDividend payable 22262804.39 22262804.39

Liabilities held for sales

Non-current liability due

190331701.48 199348977.11 9017275.63

within 1 year

Other current liability 539618124.00 539618124.00

Total of current liability 2483515776.05 2492533051.68 9017275.63

Non-current liabilities：

Long-term loan 4389653800.00 4389653800.00

Bond payable 1426488336.65 1426488336.65

Including：preferred stockSustainable debt

Lease liability Not applicable 12133352.33 12133352.33

Long-term payable 40406172.37 40406172.37

Long-term remuneration

payable to staff

Expected liabilities

Deferred income 13403327.12 13403327.12

Deferred income tax

105636866.50 105636866.50

liability

Other non-current

liabilities

Total non-current liabilities 5975588502.64 5987721854.97 12133352.33

Total of liability 8459104278.69 8480254906.65 21150627.96

Owners’ equity

Amount involved in the

Items December 312020 January 12021

adjustment

Share capital 2090806126.00 2090806126.00

Other equity instruments

Including：preferred stockSustainable debt

Capital reserves 938969546.79 938969546.79

Less：Shares in stockOther comprehensive

302895877.65 302895877.65

income

Special reserve

Surplus reserves 987813698.07 987813698.07

Retained profit 3667543163.36 3667109303.94 -433859.42

Total of owners’ equity 7988028411.87 7987594552.45 -433859.42

Total of liabilities and

16447132690.56 16467849459.10 20716768.54

owners’ equity

Note

（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards

Governing Financial Instruments or Leases from year 2020

□ Applicable √ Not applicable

VI. Taxation

1. Major category of taxes and tax rates

Tax category Tax basis Tax rate

VAT Taxable income 3%，5%，6%，9%，13%City maintenance and construction tax The actual payment of turnover tax 7%，5%Enterprise income tax Taxable income 25%

Education Fee Surcharge The actual payment of turnover tax 3%

Local education surcharge The actual payment of turnover tax 2%

2.Preferential tax

According to the Notice of the Ministry of Finance and the State Administration of Taxation on Fully

Opening the Pilot of Changing Business Tax to VAT (CS [2016] No.36) the qualified contract energy

management services of the subsidiary Guangdong High-speed Technology Investment Co. Ltd. are exempt from

VAT.VII. Notes to the major items of consolidated financial statement

Unless otherwise specified in the following notes (including the notes to main items in the financial

statements of the parent company) "the beginning of the period" refers to January 1 2021 "the end of the period"

refers to June 30 2021 "current period" refers to January-June 2021 and "last period" refers to January-June

2020.1.Monetary Capital

In RMB

Items Amount in year-end Balance Year-beginning

Cash 82551.70 54482.68

Bank deposit 3566696538.96 2846821352.23

Other 517519.76 522168.98

Total 3567296610.42 2847398003.89

Other note

On January 302021The balance of restricted bank deposits at the end of the period was 1221200.00 yuan

which was the land reclamation fund deposited into the fund custody account for the reconstruction and expansion

project of Sanbao to Shuikou section of Fokai Expressway.2. Account receivable

1.Classification account receivables.In RMB

Amount in year-end Balance Year-beginning

Book Balance Bad debt provision Book Balance Bad debt provision

Category Amount Proportion Amount Propo Book value Amount Proportio Amount Propor Book value

(%) rtion( n(%) tion(%

%) )

Of which：

Accrual of bad debt provision

148842756.74 100.00% 5024861.38 3.38% 143817895.36 172621378.99 100.00% 3713861.43 2.15% 168907517.56

by portfolio

Of which：

Aging portfolio 147970199.41 99.41% 5024861.38 3.40% 142945338.03 171846750.22 99.55% 3713861.43 2.16% 168132888.79

Quality guarantee portfolio 872557.33 0.59% 872557.33 774628.77 0.45% 774628.77

Total 148842756.74 5024861.38 143817895.36 172621378.99 3713861.43 168907517.56

Accrual of bad debt provision by portfolio：Accrual of bad debt provision by aging portfolioIn RMB

Balance in year-end

Name

Receivable accounts Bad debt provision Withdrawal proportion

Within 1 year 117138930.20 0.00%

1-2 years 21329417.96 2029072.20 10.00%

2-3 years 9085541.25 2619035.18 30.00%

3-4 years 75000.00 37500.00 50.00%

4-5 years 20560.00 18504.00 90.00%

Over 5 years 320750.00 320750.00 100.00%

Total 147970199.41 5024861.38 --

Accrual of bad debt provision by portfolio: Notes of the basis of Quality guarantee the group

In RMB

Balance in year-end

Name

Receivable accounts Bad debt provision Withdrawal proportion

Quality guarantee 872557.33

Total 872557.33 --

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of

other receivables if the provision for bad debts of bills receivable is accrued according to the general model of

expected credit loss:

□ Applicable √Not applicable

Disclosure by aging

In RMB

Aging Closing balance

Within 1 year（Including 1 year） 117359934.21

1-2 years 21329417.96

2-3 years 9196201.85

Over 3 years 957202.72

3-4 years 158509.20

4-5 years 228569.83

Over 5 years 570123.69

Total 148842756.74

(2) Accounts receivable withdraw reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

In RMB

Amount of change in the current period

Opening

Category Reversed or

Closing

balance Accrual collected Write-off Other balance

amount

Aging portfolio 3713861.43 1310999.95 5024861.38

Total 3713861.43 1310999.95 5024861.38

Of which the significant amount of the reversed or collected part during the reporting period :None

（3）The current accounts receivable write-offs situation

None

（4）The ending balance of other receivables owed by the imputation of the top five parties

In RMB

Name Relations with the Amount Aging Proportion(%) Bad debt provision

Company

Guangdong Union Electronic 68390397.52 Within 1 45.95

Services Co. Ltd. Related party year

25013757.94 Within 1 16.81

Guangdong Humen Bridge Co. Ltd. Related party year

14637000.00 1-2 years 9.83 1463700.00

Guangzhou Lingte Electronic Non- Related

864000.00 Within 1 0.58

Co.Ltd. party

year

Shandong Boan Intelligent Non- Related

7409966.25 4.98 2222989.88

Technology Co. Ltd party 2-3 years

Guangdong Lulu Traffic Non- Related Within 1

6458333.33 4.34 1744962.90

Development Co. Ltd. party year

Total / 122773455.04 / 82.49 3686698.88

（5）Account receivable which terminate the recognition owning to the transfer of the financial assets

None

(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts

receivable

None

3. Prepayments

（1）Age analysis

In RMB

Balance in year-end Balance Year-beginning

Age

Amount Proportion（%） Amount Proportion（%）

Within 1 year 2413352.66 66.49% 2741988.15 96.85%

1-2 years 1216552.83 33.51% 89136.83 3.15%

Total 3629905.49 -- 2831124.98 --

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:

None

(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target

In RMB

Name Relations with the Amount Aging Reasons for Proportion %

Company non-settlemen

Guangzhou Lianxu Automation Non- Related party 1417699.11Within 1 year Outstanding 39.06

Equipment Co. Ltd period

China Pacific Property Insurance Non- Related party 838016.00 1-2 years Outstanding 23.09

Co. Ltd. Guangdong Branch period

Tianjing Kechang Huitong Non- Related party 300000.00Within 1 year Outstanding 8.26

Information Technology Co. Ltd. period

Guangdong Power Grid Energy Non- Related party 240500.00Within 1 year Outstanding 6.63

Development Co. Ltd. period

Zhaoqing Yuezhao highway Co. Related party 151938.00Within 1 year Outstanding 4.19

Ltd. period

Total / 2948153.11 / / 81.22

4.Other accounts receivable

In RMB

Items Balance in year-end Balance Year-beginning

Dividend receivable 77609011.14 2705472.90

Other receivable 38670306.56 58219894.74

Total 116279317.70 60925367.64

（1）Dividend receivable

1)Dividend receivable

In RMB

Items Balance in year-end Balance Year-beginning

Guangdong Radio and Television Networks investment

1205472.90 1205472.90

No.1 Limited partnership enterprise

Ganzhou Gankang Expressway Co. Ltd. 1500000.00

China Everbright Bank 49403538.24

Ganzhou Kangda Expressway Co. Ltd. 27000000.00

Total 77609011.14 2705472.90

2）Significant dividend receivable aged over 1 year

None

（2） Other accounts receivable

1) Other accounts receivable classified by the nature of accounts

In RMB

Nature Closing book balance Opening book balance

Balance of settlement funds for

47528056.18 47528056.18

securities transactions

Capital reduction due from Gangkang 22500000.00 45000000.00

Petty cash 7361462.04 5654205.42

Gelin Enze Account 4007679.91 4007679.91

Cash deposit 3839969.43 4001660.43

Tran Other safer of long-term assets

935820.00 935820.00

receivable

Other 4159095.07 2754248.87

Subtotal 90332082.63 109881670.81

Less：Bad-debt provision 51661776.07 51661776.07Total 38670306.56 58219894.74

2）The withdrawal amount of the bad debt provision：

In RMB

Stage 1 Stage 2 Stage 3

Bad Debt Reserves Expected credit Expected credit loss over Expected credit losses for Total

losses over the next life (no credit the entire duration (credit

12 months impairment) impairment occurred)

Balance as at January

126039.98 51535736.09 51661776.0712021

Balance as at January

—— —— —— ——

12021 in current

Balance as at June

126039.98 51535736.09 51661776.07302021

Of which the significant amount of the reversed or collected part during the reporting period :None

Note 1：The parent company once paid 33683774.79 yuan into Kunlun Securities Co. Ltd GuangdongExpressway technology investment Co. Ltd once paid 18000000.00 yuan into Kunlun Securities Co. Ltd.Qinghai Province Xining City’s intermediate people’s court made a adjudication under law declared that Kunlun

Securities Co. Ltd went bankrupt and repaid debt in November 11 2006. On March 2007 The Company and

Guangdong Expressway Technology Investment Co. Ltd had switched the money that paid into Kunlun Securities

Co. Ltd to other account receivable and follow the careful principle to doubtful debts provision. The 710349.92

yuan Credit was Recovered in 2008 The 977527.77 yuan credit was recovered in 2011 The 652012.00 yuan

Credit was recovered in 2014 The 1815828.92 yuan Credit was recovered in 2018 and the provision for had

deb.Note 2：Guangdong Expressway Technology investment Co. Ltd .should charge Beijing Gelin Enze OrganicFertilizer Co. Ltd.for 12220079.91 yuan. Eight millions of it was entrust loan three million was temporary

borrowing 12400.00 yuan is the commission loan interest the rest of it was advance money for another Beijing

Gelin Enze Organic Fertilizer Co. Ltd’s operating status was had and had already ceased producing Accordingly

the controlling subsidiary of the company Guangdong Expressway Investment Co. Ltd. accounted full provision

for Bad debt 12220079.91 yuan provision. The company in 2014 recovered arrears of 8000000.00

yuan rushed back to the provision for bad debts and write off uncollected interest entrusted loans according to tTh

e settlement agreement of 212400.00 yuan.Changes in significant book balances for loss preparation current period

□ Applicable √ Not applicable

Disclosure by aging

In RMB

Aging Closing balance

Within 1 year（Including 1 year） 33375728.18

1-2 years 3333236.45

2-3 years 85640.38

Over 3 years 53537477.62

3-4 years 277019.07

4-5 years 431700.40

Over 5 years 52828758.15

Subtotal 90332082.63

Less：Bad-debt provision 51661776.07Total 38670306.56

3） Accounts receivable withdraw reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

In RMB

Amount of change in the current period

Balance Reversed or Balance inCategory

Year-beginning Accrual collected Write-off Other year-end

amount

Accrual of single item 51535736.09 51535736.09

Accrual of

portfolio-Aging 126039.98 126039.98

portfolio

Accrual of

portfolio-Other portfolio

Total 51661776.07 51661776.07

Where the current bad debts back or recover significant amounts:None

4)The actual write-off other accounts receivable: None

5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party

In RMB

Proportion

of the total

year end

balance of Closing balance of

Name Nature Closing balance Aging

the bad debt provision

accounts

receivable(

Kunlun Securities Securities trading settlem

47528056.18 Over 5 years 52.61% 47528056.18

Co.Ltd ent funds

Ganzhou Gangkang Capital reduction due

22500000.00 Within 1 year 24.91%

Expressway Co. Ltd. from Gangkang

Beijing Gelin Enze Loans 4007679.91 Over 5 years 4.44% 4007679.91

Guangdong Litong Real Lease deposit 1630467.36 Within 1 year 1.81%

Estates Investment Co.Ltd. Vehicle parking deposit 58660.00 Over 5 years 0.06%

China Railway No.18 Pay compensation for

963300.00 Within 1 year 1.07%

Bureau Group Co. Ltd. local problems on behalf

Total -- 76688163.45 -- 84.90% 51535736.09

(6) Accounts receivable involved with government subsidies

None

(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets None

(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts

receivable

None

5. Inventories

Whether the company need to comply with the disclosure requirements of the real estate industry

（1）Category of Inventory

In RMB

Closing book balance Opening book balance

Items Provision for Provision for

Book balance inventory Book value Book balance inventory Book value

impairment impairment

Raw materials 273584.06 273584.06 49380.53 49380.53

Stock goods 101769.91 101769.91 4380.53 4380.53

Total 375353.97 375353.97 53761.06 53761.06

(2) Inventory depreciation reserve

None

(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized

None

（4）Description of amortization amount of contract performance cost in the current period

None

6.Contract assets

In RMB

Year-end balance Year-beginning balance

Items

Book Bad debt Book Bad debt

Book value Book value

balance provision balance provision

Quality guarantee 5231809.89 5231809.89 5452813.90 5452813.90

Total 5231809.89 5231809.89 5452813.90 5452813.90

Amount and reason of material change of book value of contract assets in the current period::None

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of

other receivables if the provision for bad debts of contract assets is accrued according to the general model of

expected credit loss:

□ Applicable √Not applicable

7.Non-current asset due within 1 year

In RMB

Items

Year-end balance Year-beginning balance

Pre-payment of business tax before

51745.32 51745.32

replacing business tax with VAT

7 days notice of deposit interest 6137170.84

Total 6188916.16 51745.32

8.Other current assets

I n RMB

Items

Year-end balance Year-beginning balance

Income tax to be deducted 738014.86

Income tax to be certified 54991.94 27051.69

Total 793006.80 27051.69

9. Long-term equity investment

In RMB

Increase/decrease

Withdra Closing

Decr Profits and Cash bonus or wal of balance of

Investees Opening balance Additi ease losses on

Other Closing

onal in investments comprehensiv Changes of profits impairm impairmeOther balance

invest inves Recognized e other equity announced to ent nt

ment tmen under the equity income issue provisio provisiont method

I. Joint venture

2. Affiliated Company

203958049.0

Guangdong Jiangzhong Expressway Co. Ltd. 192252504.94 11705544.071

155398808.1

Ganzhou Gankang Expressway Co. Ltd. 145774620.72 9624187.446

214731258.8

Ganzhou Kangda Expressway Co. Ltd. 216814090.50 24917168.32 27000000.002

302411701.9

Shenzhen Huiyan Expressway Co. Ltd. 285408755.15 17002946.805

292468119.8

Zhaoqing Yuezhao Highway Co. Ltd. 302436218.83 29706901.01 39675000.004

950426509.1

Guoyuan Securities Co. Ltd. 938476820.74 20302738.27 1995208.32 10348258.203

218276745.1

Guangdong Yuepu Small Refinancing Co. Ltd 215703320.38 6351644.00 -3778219.253

Hunnan Lianzhi Technology Co. .Ltd. 85080974.92 3035459.41 88116434.33

2425787626.Subtotal 2381947306.18 122646589.32 1995208.32 -3778219.25 77023258.2037

2425787626.Total 2381947306.18 122646589.32 1995208.32 -3778219.25 77023258.2037

Other note

Note：Guangdong Yueke Technology Petty Loan Co. Ltd. was renamed as Guangdong Yuepu Small Refinancing Co. Ltd in February 2021.10.Other Equity instrument investment

In RMB

Items Closing balance Opening balance

Guangle Expressway Co. Ltd. 748348301.73 748348301.73

Guangdong Radio and Television Networks investment No.1

50000000.00 50000000.00

Limited partnership enterprise

China Everbright Bank Co. Ltd. 889263688.32 938667226.56

Huaxia Securities Co. Ltd.（Notes1）

Huazheng Asset Management Co. Ltd.（Notes2）

Kunlun Securities Co. Ltd.（Notes3）

Total 1687611990.05 1737015528.29

Breakdown disclosure of investment in non-tradable equity instruments in the current period

In RMB

Amount of Reasons for

Reasons for

other other

designation as

Dividend consolidated consolidated

Cumulative Cumulative measured at fair value

Items income income income

gain loss and changes included

recognized transferred to transferred

in other comprehensive

retained to retained

income

earnings earnings

Non-transactional

Guangle Expressway Co.purpose for

Ltd.shareholding

Guangdong Radio and

Non-transactional

Television Networks

7802784.15 purpose for

investment No.1 Limited

shareholding

partnership enterprise

Non-transactional

China Everbright Bank

49403538.24 371702811.52 purpose for

Co. Ltd.shareholding

Non-transactional

Huaxia Securities Co.5400000.00 purpose for

Ltd.shareholding

Non-transactional

Huazheng Asset

1620000.00 purpose for

Management Co. Ltd.shareholding

Kunlun Securities Co. Non-transactional

30000000.00

Ltd. purpose for

shareholding

Total 49403538.24 379505595.67 37020000.00

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 1.3932 million yuan for impairment in respect of this long-term equity investment of 1.62

million yuan.Note 3.The owner's equity of Kunlun Securities Co. Ltd. was negative and it entered liquidation procedure in October 2005. A

wholly owned subsidiary of Guangdong Expressway Technology Investment Co. Ltd. Will invest

Kunlun Securities Co. Ltd.'s full provision for impairment of 30 million yuan.11. Investment property

(1) Investment property adopted the cost measurement mode

√ Applicable □Not applicable

In RMB

Construction in

Items Houses and buildings Land use right Total

progress

I. Original value

1.Opening balance 12664698.25 2971831.10 15636529.35

2.Increased amount of

the period

（1）Outsourcing

(2)Inventory Fixed

assets and

Construction project

into

(3) )Increased of

Enterprise

consolidation

3.Decreased amount of

the period

Construction in

Items Houses and buildings Land use right Total

progress

（1）Disposal

（2）Other Out

4.Closing balance 12664698.25 2971831.10 15636529.35

II.Accumulated

depreciation

accumulated

amortization

1.Opening balance 10694640.90 1831506.56 12526147.46

2.Increased amount of

73774.56 36784.68 110559.24

the period

(1)Withdrawal or

73774.56 36784.68 110559.24

amortization

3.Decreased amount of

the period

（1）Disposal

（2）Other Out

4.Closing balance 10768415.46 1868291.24 12636706.70

III. Impairment

provision

1.Opening balance

2.Increased amount of

the period

（1）Withdrawal

3.Decreased

amount of the period

（1）Disposal

Construction in

Items Houses and buildings Land use right Total

progress

（2）Other Out

4.Closing balance

IV. Book value

1.Closing book value 1896282.79 1103539.86 2999822.65

2.Opening book 1970057.35 1140324.54 3110381.89

(2) Investment property adopted fair value measurement mode

□Applicable√ Not applicable

(3) Details of investment property failed to accomplish certification of property

In RMB

Items Book balance Reason

Transportation and other ancillary

Houses and Building 1218972.18

facilities Not accreditation

Other note

12. Fixed assets

In RMB

Items Year-end balance Year-beginning balance

Fixed assets 10897122561.83 11540066429.69

liquidation of fixed assets 13117.55 9500.00

Total 10897135679.38 11540075929.69

(1) List of fixed assets

In RMB

Jingzhu Electricity

Guangfo Guanghui House and Machinery Transportation

Items Fokai Expressway Expressway equipment and Total

Expressway Expressway buildings equipment equipment

Guangzhu section other

I. Original price

1.Opening

1460270190.66 10892817927.30 6475428904.48 4824881424.98 653156798.92 1807080795.89 61427688.89 134245998.01 26309309729.13

balance

2.Increased

amount of the 16210108.00 27120.00 290080.76 16527308.76

period

（1）Purchase 27120.00

（2）Transfer of

project under 276082.76 303202.76

construction

(3)Increased of

Enterprise 13998.00 13998.00

consolidation

（4）Other 16210108.00 16210108.00

3.Decreased

amount of the 129039.00 957990.00 499966.00 16482158.00 18069153.00

period

（1）Disposal or

129039.00 957990.00 499966.00 272050.00 1859045.00

scrap

（2）Government

subsidy offset

（3）Other 16210108.00 16210108.00

4.Closing balance 1460270190.66 10892817927.30 6475428904.48 4841091532.98 653027759.92 1806149925.89 60927722.89 118053920.77 26307767884.89

II. Accumulated

depreciation

1.Opening balance 1460270190.66 4999612912.32 3571631502.43 2994964464.08 432913163.79 1174349065.14 49827783.08 77204103.16 14760773184.66

2.Increased amount

279351679.51 181279037.25 81797251.54 14304055.28 77259366.40 1144611.08 5087884.75 640223885.81

of the period

（1）Withdrawal 279351679.51 181279037.25 81797251.54 14304055.28 77259366.40 1144611.08 5087884.75 640223885.81

3.Decreased

amount of the 122587.05 862191.00 474967.70 251510.60 1711256.35

period

(1)Disposal or scrap 122587.05 862191.00 474967.70 251510.60 1711256.35

4.Closing balance 1460270190.66 5278964591.83 3752910539.68 3076761715.62 447094632.02 1250746240.54 50497426.46 82040477.31 15399285814.12

II.Accumulated

depreciation

1.Opening balance 7870708.72 599405.96 8470114.78

2.Increased amount

2889394.16 2889394.16

of the period

（1）Withdrawal 2889394.16 2889394.16

3.Decreased amount

of the period

(1)Disposal or scrap

4.Closing balance 2889394.16 7870708.72 599405.96 11359508.94

IV. Book value

1.Closing book

5613853335.47 2722518364.80 1764329817.36 203043733.74 547532976.63 10430296.43 35414037.50 10897122561.83

value

2.Opening book 5893205014.98 2903797402.05 1829916960.90 220243635.13 624861021.93 11599905.81 56442488.89 11540066429.69

(2)Temporarily idle fixed assets

In RMB

Accumulated Impairment

Items Original price Book value Remark

depreciation provision

House and

6014243.63 4166329.20 1847914.43

buildings

Total 6014243.63 4166329.20 1847914.43

(3)Details of fixed assets failed to accomplish certification of property

In RMB

Items Book value Reason

Transportation and other ancillary

House and Building 141341854.15

facilities，Not accreditation.

（4）liquidation of fixed assets

In RMB

Items Year-end balance Year-beginning balance

Transportation equipment 9500.00

House and Building 6451.95

Office equipment and other 6665.60

Total 13117.55 9500.00

13. Project under construction

In RMB

Items Year-end balance Year-beginning balance

Project under construction 476068792.62 340611095.47

Total 476068792.62 340611095.47

（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

Bridge Deck

Treatment

119531037.47 119531037.47 117493329.30 117493329.30

Project of

Dayong

Viaduct

Pavement

Treatment 122157600.54 122157600.54 105958479.27 105958479.27

Project

Gualuhu

Interchange 134788295.75 134788295.75 52045974.12 52045974.12

project

Reconstruction

and Expansion

32639361.33 32639361.33 29547232.58 29547232.58

of Sanbao to

Shuikou

Ganshen

High-speed

railway

crossing 12091362.98 12091362.98 2555353.00 2555353.00

section

expansion

project

Huizhou North

Interchange 17214947.18 17214947.18 283432.73 283432.73

Project

Odd project 37646187.37 37646187.37 32727294.47 32727294.47

Total 476068792.62 476068792.62 340611095.47 340611095.47

(2) Changes of significant construction in progress

In RMB

Including:

capitalization Capitaliza Source

Transferre Capitalization

Other Proportion Project of tion of of

Name of project Budget Opening balance Increase d to fixed End balance of

decrease % process interest interest fundin

assets interest this rate (%) g

period

Reconstruction

and Expansion

3426206700.00 29547232.58 3092128.75 32639361.33 75.86% 82.29% 72779504.82

of Sanbao to

Shuikou

Gualuhu

Interchange 197520000.00 52045974.12 82756319.63 13998.00 134788295.75 68.24% 68.24%

project

Pavement

Treatment 186000000.00 105958479.27 16199121.27 122157600.54 65.68% 65.68% 4188901.41 1708886.27 4.07%

Project

Bridge Deck

Treatment

123000000.00 117493329.30 2037708.17 119531037.47 97.18% 97.18% 6678897.11 2037708.17 4.07%

Project of

Dayong Viaduct

Total 3932726700.00 305045015.27 104085277.82 13998.00 409116295.09 -- -- 83647303.34 3746594.44 --

(3)Provision for impairment of construction projects in the current period

None

14.Use right assets

In RMB

Items House and buildings Transportation equipment Total

I. Original price

1.Opening balance 22494778.29 659277.49 23154055.78

2.Increased amount of the

504113.56 504113.56

period

4.Closing balance 22494778.29 1163391.05 23658169.34

II. Accumulated depreciation

1.Opening balance

2.Increased amount of the period 4657872.55 260044.03 4917916.58

（1）Withdrawal 4657872.55 260044.03 4917916.58

4.Closing balance 4657872.55 260044.03 4917916.58

III. Impairment provision

IV. Book value

1.Closing book value 17836905.74 903347.02 18740252.76

2.Opening book value 22494778.29 659277.49 23154055.78

Other note :None

15. Intangible assets

(1) List of intangible assets

In RMB

Land use Patent Non-patent The Turnpike

Items Software Total

right right right franchise

I. Original price

1.Opening balance 1311658.00 39912285.19 318348741.86 359572685.05

2.Increased amount of the

period

(1) Purchase

Land use Patent Non-patent The Turnpike

Items Software Total

right right right franchise

(2)Internal Development

(3)Increased of Enterprise

Combination

3.Decreased amount of the

period

（1）Disposal

4.Closing balance 1311658.00 39912285.19 318348741.86 359572685.05

II.Accumulated amortization

1.Opening balance 1311658.00 32458724.38 23420946.15 57191328.53

2.Increased amount of the

1405532.76 17245289.04 18650821.80

period

(1) Withdrawal 1405532.76 17245289.04 18650821.80

3.Decreased amount of the

period

（1）Disposal

4.Closing balance 1311658.00 33864257.14 40666235.19 75842150.33

III. Impairment provision

1.Opening balance

2.Increased amount of the

period

(1) Withdrawal

3.Decreased amount of the

period

（1）Disposal

Land use Patent Non-patent The Turnpike

Items Software Total

right right right franchise

4.Closing balance

IV. Book value

1.Closing book value 6048028.05 277682506.67 283730534.72

2.Opening book value 7453560.81 294927795.71 302381356.52

The intangible assets by the end of the formation of the company's internal R & D accounted 0.00% of the

proportion of the balance of intangible assets

Note: According to the relevant government documents the company included the relevant operating

expenses incurred during the epidemic prevention and control period from February 17 2020 to May 5 2020 into

intangible assets-book value of toll road franchise and began to accrue and amortize the remaining operating

period in May 2020 according to the traffic flow method.⑵Details of Land use right failed to accomplish certification of property

None

16. Long-term amortize expenses

In RMB

Balance in Increase in this Amortized Balance in

Items year-begin period expenses Other loss

year-end

Prepaid business

tax and surcharges

before

2454375.00 175312.50 2279062.50

replacement of

business tax with

value-added tax

Total 2454375.00 175312.50 2279062.50

17. 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

11594966.32 2898741.58 8705572.16 2176393.04

provisions

Deductible loss 895998889.02 223999722.26 1000101381.76 250025345.44

Amortization of

204533341.88 51133335.47 269669149.91 67417287.48

intangible assets

Deferred income 37761831.40 9440457.85 44545569.73 11136392.43

Total 1149889028.62 287472257.16 1323021673.56 330755418.39

(2) Deferred income tax liabilities had not been off-set

In RMB

Balance in year-end Balance Year-beginning

Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax

difference liabilities difference liabilities

Changes in the fair

value of other equity 371702811.52 92925702.88 421106349.76 105276587.44

instruments

Deductible temporary

differences in the

1073420402.00 268355100.50 1124772402.32 281193100.58

formation of asset

impairment

Difference of

amortization method of 3567807.68 891951.92 2533490.83 633372.72

franchise of toll road

Total 1448691021.20 362172755.30 1548412242.91 387103060.74

（3）Details of unrecognized deferred tax assets

In RMB

Items Balance in year-end Balance Year-beginning

Deductible loss 15880112.62 11452524.12

Assets impairment provisions 93295931.45 91984931.50

Total 109176044.07 103437455.62

（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years

In RMB

Year Balance in year-end Balance Year-beginning Remark2021

2022 1133109.04 1133109.04

2023 3129535.72 3129535.72

2024 3618779.07 3618779.07

2025 3571100.29 3571100.29

2026 4427588.50

Total 15880112.62 11452524.12 --

18. 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 fixed assets 22732114.6

22732114.65 21946578.75 21946578.75

engineering fees 5

Prepaid business tax 441155.10 441155.10 467027.76 467027.76

Less：Part due within 151745.32 51745.32 51745.32 51745.32

year

23121524.4

Total 23121524.43 22361861.19 22361861.193

19. Short-term Borrowing

（1）Short-term Borrowing

In RMB

Total Balance in year-end Balance Year-beginning

Credit Borrowing 200000000.00 200000000.00

Interest accrued on short-term borrowing 175000.00 192500.00

Total 200175000.00 200192500.00

（2）Overdue short-term borrowings

None

20.Account payable

（1） List of account payable

In RMB

Items Balance in year-end Balance Year-beginning

Within 1 year（Including 1 year） 108653398.13 252654968.64

1-2 years（including2 years） 95600699.27 44097234.36

2-3 years（including 3 years） 33193319.26 10392605.88

Over 3 years 69061279.17 62628533.83

Total 306508695.83 369773342.71

（2）Significant payable aging more than 1 year

In RMB

Items Balance in year-end Reason

Foshan Land and resources Bureau. 30507598.21 Unsettled

Guang Zhongjiang Expressway project

28000000.00 Unsettled

Management Dept

Heshan Land and resources Bureau 10186893.60 Unsettled

Guangdong Provincial Freeway Co.Ltd. 8746491.18 Unsettled

The Third Research Institute of The

8730588.49 OBU goods，Unsettledministry Of public Security

Total 86171571.48 --

Other note：

21. Prepayment received

(1) List of Prepayment received

In RMB

Items Balance in year-end Balance Year-beginning

Within 1 year（Including 1 year） 12523692.52 1473106.10

1-2 years（Including 2 years）

2-3 years（Including 3 years）

Over 3 years 9278102.25 9835901.31

Total 21801794.77 11309007.41

(2) Significant advance from customers aging over one year

In RMB

Items Balance in year-end Unpaid/Uncarry over reason

Guangzhou Huanlong Expressway Co. The Rental is not in the settlement

7538446.46

Ltd. period

Guanghdong Xinle Technology The Rental is not in the settlement

1317877.49

Development Co. Ltd. period

Total 8856323.95 --

（3）Settlement of outstanding projects resulting from final construction contracts

None

22.Contract liabilities

In RMB

Items Balance in year-end Balance Year-beginning

Payments received in advance 327734.51 309734.51

Less：Other non-current liabilitiesTotal 327734.51 309734.51

23. Payable Employee wage

（1）Payable Employee wage

In RMB

Items Year-beginning Increase in the Decrease in the Year-end balance

balance current period current period

I. Short-term compensation 16726198.13 176850610.36 171066382.99 22510425.50

II.Post-employment benefits - defin

29615875.36 26805310.89 2810564.47

ed contribution plans

III. Dismissal benefits 52930.00 52930.00

Total 16726198.13 206519415.72 197924623.88 25320989.97

（2）Short-term Remuneration

In RMB

Items Year-beginning Increase in the Decrease in the Year-end balance

balance current period current period

1.Wages bonuses allowances

465063.49 130356876.54 124264341.41 6557598.62

and subsidies

2.Employee welfare 10676725.41 10676725.41

3. Social insurance premiums 12115919.26 12102773.45 13145.81

Including ：Medical7943235.84 7931971.21 11264.63

insurance

Work injury insurance 132925.72 132667.60 258.12

Maternity insurance 1243270.56 1241647.50 1623.06

Other 2796487.14 2796487.14

4.Public reserves for housing 18938804.00 18914108.00 24696.00

5.Union funds and staff

14578979.10 4108021.65 4454171.22 14232829.53

education fee

8.Other 1682155.54 654263.50 654263.50 1682155.54

Total 16726198.13 176850610.36 171066382.99 22510425.50

（3）Defined contribution plans listed

In RMB

Balance Increase in this period Payable in this period Balance in year-end

Items

Year-beginning

1. Basic old-age

17058245.75 17033625.11 24620.64

insurance premiums

2.Unemployment

1508985.20 1508236.43 748.77

insurance

3.Enterprise annuity

11048644.41 8263449.35 2785195.06

payment

Total 29615875.36 26805310.89 2810564.47

24. Tax Payable

In RMB

Items Balance in year-end Balance Year-beginning

VAT 11310652.79 19253425.01

161545820.11 192073414.37

Enterprise Income tax

Individual Income tax 379604.75 2589498.58

City Construction tax 735675.16 1270608.27

Education subjoin 354153.73 594019.27

Locality Education subjoin 216166.07 376577.48

Land use tax 638542.10

Property tax 975716.99 45461.47

Stamp tax 55280.55 1514826.65

Construction costs for cultural 30561.68

undertaking

Total 176211612.25 217748392.78

25.Other accounts payable

In RMB

Items Balance in year-end Balance Year-beginning

Dividend payable 630684374.92 22262804.39

Other account payable 188472025.89 1490356555.39

Total 819156400.81 1512619359.78

（1）Dividends payable

In RMB

Items Balance in year-end Balance Year-beginning

Common stock dividends 630684374.92 22262804.39

Total 630684374.92 22262804.39

Note: Including significant unpaid dividends payable over one year the unpaid reason shall be disclosed:

Final dividend payable 19634536.14yuan for more than a year in unpaid dividends to shareholders over the year w

as mainly due to non-payment of shareholder dividends did not provide information on interest-bearing bank did

not share reform of shareholders to receive dividends or provide application to receive dividends the bank informa

tion is incorrect resulting in failure to pay a dividend or refund.

（2）Other accounts payable

(1) Other accounts payable listed by nature of the account

In RMB

Items Year-end balance Year-Beginning balance

M&A funds payable to Guanghui 21%

1221839292.00

equity

Estimated project cost 72631540.13 147443692.67

Deposit warranty and security deposit 75542601.43 82529159.41

Other 36354505.94 36456530.29

Temporary collection payable 3943378.39 2087881.02

Total 188472025.89 1490356555.39

(2) Other significant accounts payable with aging over one year

In RMB

Items Closing balance Unpaid/un-carry over reason

Poly Changda Highway Engineering Project Quality guarantees constrict

14430723.78

Co. Ltd. liquidated damages

Yayao to Xiebian extension 12499448.48 Outstanding

Guangdong Guanyue Road & Bridge

6539681.80 Project Quality guarantee

Co. Ltd.Guangdong Nengda High Grade Contract liquidated damages Wage

3615020.10

Highway Maintenance Co. Ltd. margin for migrant workers

Dahao Municipal Construction Co. Ltd. 3000000.00 Project Quality guarantee

Total 40084874.16 --

26. Non-current liabilities due within 1 year

In RMB

Items Balance year-end Year-beginning balance

Long-term loans due within 1 year 142956200.00 203536200.00

Long-term payable due within 1 year 944339.62 732075.46

Lease liabilities due within 1 year 9658303.32 9124680.86

Interest payable due within 1 year 22299019.57 62059742.01

Total 175857862.51 275452698.33

Other note：

27.Other current liabilities

In RMB

Items Balance year-end Year-beginning balance

Tax to be rewritten 1882974.53 648581.64

Total 1882974.53 648581.64

28. Long-term loan

(1) Category of long-term loan

In RMB

Items Balance year-end Year-beginning balance

Pledge loan 616030000.00 657365000.00

Credit loan 5403966900.00 4523610000.00

Less:Long-term loans due within one

142956200.00 203536200.00

year

Total 5877040700.00 4977438800.00

29.Bond payable

（1）Bond payable

In RMB

Items Balance year-end Year-beginning balance

Medium- term note 1426956661.36 1426488336.65

Total 1426956661.36 1426488336.65

（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

Withdra Pay in

The Overflow

w curren

Name of the bond Book value Issue date Period Issue amount Opening balance current discount Closing balance

interest t

issue amount

at par period

19 Guangdong

680000000.00 2019.2.27 2019.3.1-2024.3.1 680000000.00 678575316.87 -223418.00 678798734.87

Expressway MTN001

20 Guangdong

750000000.00 2020.3.13 2020.3.17-2025.3.17 750000000.00 747913019.78 -244906.71 748157926.49

Expressway MTN001

Total -- -- -- 1430000000.00 1426488336.65 -468324.71 1426956661.36

(3) Note to conditions and time of share transfer of convertible bonds

None

（4）Other financial instruments that are classified as financial liabilities

None

30.Lease liabilities

In RMB

Items Balance year-end Year-beginning balance

Long-term lease liabilities 17381066.74 21369895.75

Including： Financing costs are not737310.63 1134013.96

recognized

Less：Lease liabilities due within 1 year -9658303.32 -9124680.86Total 7722763.42 12245214.89

31. Long-term payable

In RMB

Items Balance year-end Year-beginning balance

Long-term payable 3461832.74 40406172.37

Total 3461832.74 40406172.37

(1) Long-term payable listed by nature of the account

In RMB

Items Balance year-end Year-beginning balance

Non-operating asset payable 2022210.11 2022210.11

Entrust loans 36000000.00

Medium term bill underwriting fee 2383962.25 3116037.72

Less：Part due within 1 year 944339.62 732075.46Total 3461832.74 40406172.37

32. Deferred income

In RMB

Items Opening balance Increase Decrease Closing balance Cause

Government

44545569.64 6783738.24 37761831.40

subsidy

Lease income 44625000.00 3187500.00 41437500.00

Total 89170569.64 9971238.24 79199331.40 --

Details of government subsidies：

In RMB

Amount Other income Asset-related

New subsidy Amount of cost Other

Beginning of transferred to recorded in or

Items in current deducted in the chang End of term

term non-operational the current income-relat

period current period es

income period ed

Cancellation of Expressway Provincial Toll Station Related to

44545569.64 6783738.24 37761831.40

Project assets

Total 44545569.64 6783738.24 37761831.40

33. Stock capital

In RMB

Changed（+，-）Balance Balance in

Year-beginning Issuance of Bonus Capitalizatio Other Subtotal year-end

new share shares n of public

reserve

Total of

2090806126.00 2090806126.00

capital shares

34. Capital reserves

In RMB

Items Year-beginning Increase in the Decrease in Year-end balance

balance current period the current

period

Share premium 508711146.99 508711146.99

(1) Capital invested by investors 2508408342.99 2508408342.99

(2) Influence of business combination under the

-1999697196.00 -1999697196.00

same control

Other capital reserves 137258063.49 46064922.25 183322985.74

(1) Changes in other equity of the investee under

525074.49 525074.49

the equity accounting

（2）Other 136732989.00 46064922.25 182797911.25

Total 645969210.48 46064922.25 692034132.73

- The situation of change in the current capital reserve is as follows:

①The increase of capital reserve-others in this period is mainly due to the agreement signed by Guanghui

and Zengcheng District People's Government to add interchange on Zengcheng Section of Guanghui Expressway

which stipulates that Guanghui will build Shaning Road Interchange and Xincheng Avenue Interchange and all

expenses incurred in building interchange will be borne by Zengcheng District People's Government. After the

project is completed it will be managed by Guanghui. A total of RMB268103900.00 was received from

Zengcheng District Government at the beginning of the period of which the opening balance of capital reserve

attributable to the parent company-other capital reserve was RMB136732989.00 and RMB97731650.00 was

newly received in this period of which capital reserve attributable to the parent company-other capital reserve

increased by RMB 49843141.50 in this period.②The joint venture Guangdong Yuepu Small Refinancing Co. Ltd increased its capital and expanded its shares.The Company adjusted the book value of long-term equity investment according to the diluted shareholding ratio

reducing the capital reserve by RMB 3778219.25.35. Other comprehensive income

In RMB

Amount of current period

Less：Amounttransferred into

profit and loss Less：Prior periodYear-beginning in the current included in other After-taxAmount After-tax Year-endItems

balance period that composite income Less：Income tax attribute toincurred before attribute to the balancerecognied into transfer to retained expenses minority

income tax parent company

other income in the shareholder

comprehensive current period

income in prior

period

1.Other comprehensive

income will be reclassified

315829762.32 -49403538.24 -12350884.56 -37052653.68 278777108.64

into income or loss in the

future

Changes in fair value of

investments in other equity 315829762.32 -49403538.24 -12350884.56 -37052653.68 278777108.64

instruments

2.Other comprehensive

income reclassifiable to profit -12933884.67 1995208.32 1995208.32 -10938676.35

or loss in subsequent periods

Including：Share of othercomprehensive income of the

-12933884.67 1995208.32 1995208.32 -10938676.35

investee that cannot be

transferred to profit or loss

accounted for using the equity

method

Total of other comprehensive

302895877.65 -47408329.92 -12350884.56 -35057445.36 267838432.29

income

36. Surplus reserve

In RMB

Items Year-beginning Increase in the current Decrease in the current Year-end balance

balance period period

Statutory surplus

1167785965.63 1167785965.63

reserve

Total 1167785965.63 1167785965.63

37. Retained profits

In RMB

Items Amount of this period Amount of last period

Before adjustments: Retained profits in last

3725679319.35 3915790810.76

period end

Adjust the total undistributed profits at the

-433859.42

beginning of the period

After adjustments: Retained profits at the period

3725245459.93 3915790810.76

beginning

Add：Net profit belonging to the owner of the848860350.64 867842774.78

parent company

Less: Statutory surplus reserve 93232912.82

Common stock dividend payable 608424582.67 882320185.17

Other 82401168.20

Retained profit at the end of this term 3965681227.90 3725679319.35

As regards the details of adjusted the beginning undistributed profits

(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations the affected

beginning undistributed profits are RMB 0.00.

(2) As the change of the accounting policy the affected beginning undistributed profits are RMB 0.00.

(3) As the correction of significant accounting error the affected beginning undistributed profits are RMB 0.00 .

(4) As the change of consolidation scope caused by the same control the affected beginning undistributed profits

are RMB 0.00.

(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .

38.Operation income and operation cost

In RMB

Amount of this period Amount of last period

Items

Income Cost Income Cost

Main operation 2448927494.46 868560892.48 1089323025.02 765703663.54

Other operation 39547175.35 20566849.95 28431284.25 11771221.72

Total 2488474669.81 889127742.43 1117754309.27 777474885.26

39. Business tax and subjoin

In RMB

Items Amount of this period Amount of last period

Urban construction tax 4707823.03 2113789.37

Education surcharge 2248134.09 1011633.95

Property tax 1328788.22 712301.65

Land use tax 875697.88 606620.40

Vehicle use tax 43697.47 46634.19

Stamp tax 196890.20 113623.71

Business tax 185247.66 185247.66

Locality Education surcharge 1495067.55 671547.50

Total 11081346.10 5461398.43

Other note：

40. Administrative expenses

In RMB

Items Amount of this period Amount of last period

Wage 66423609.15 55064316.42

Depreciation and Amortization 5724413.26 4979637.57

Intangible assets amortization 1081305.76 1192383.87

Low consumables amortization 324317.77 269115.76

Rental fee 6032852.02 5183189.17

Business fee 372403.60 348171.25

Office expenses 4187689.42 3673999.40

Travel expenses 325420.94 112453.53

Consultation expenses 117000.00 63000.00

The fee for hiring agency 3076580.06 3309843.01

Repairs cost 342887.00 309198.01

Vehicle fee 1504032.85 1353273.53

Listing fee 11320.75 11320.75

Information cost and maintenance fee 507982.88 253897.56

Other 3325219.93 2538262.12

Total 93357035.39 78662061.95

41.Financial expenses

In RMB

Items Amount of this period Amount of last period

Interest expenses 149343110.61 134883778.08

Deposit interest income（-） -29751089.44 -15990606.72

Exchange Income and loss（Gain-）

Bank commission charge 93344.30 104477.69

Other 1183218.60 1705527.49

Total 120868584.07 120703176.54

42.Other gains

In RMB

Items Amount of this period Amount of last period

Cancellation of Expressway Provincial

6783738.24 5180566.19

Toll Station Project

Stable job subsidies 932076.28 398471.22

Enterprises with industrial training

1243500.00

subsidies

Yuexiu District Bureau of Commerce

339000.00

awards and subsidies

Maternity allowance 149069.16 149747.43

Veterans' VAT reduction and exemption 15785.44 12771.61

Withholding and remitting enterprise

322529.07 195056.10

prepaid income tax fees

Veterans' VAT reduction and exemption 136670.84

Total 9922369.03 5936612.55

43. Investment income

In RMB

Items Amount of this period Amount of last period

Long-term equity investment income by

122646589.32 12358090.15

equity method

Dividends earned during the holding period

49403538.24 50785213.04

on investments in other equity instrument

Interest income on entrusted loans 3610807.53

Total 172050127.56 66754110.72

44. Credit impairment losses

In RMB

Items Amount of this period Amount of last period

Impairment losses on accounts

-1310999.95 -236683.81

receivable

Total -1310999.95 -236683.81

45. Asset impairment loss

In RMB

Items Amount of this period Amount of last period

Loss on impairment of fixed assets -2889394.16

Total -2889394.16

46.Assets disposal income

In RMB

Source Amount of this period Amount of last period

Non-current assets disposal gains

Including：Income from disposal ofFixed assets

Income from disposal of Intangible

assets

Other 4.37

Total 4.37

47. Non-Operation income

In RMB

Recorded in the amount of

Items Amount of this period Amount of last period the non-recurring gains and

losses

Insurance claim income 2494015.56 2229165.04 2494015.56

Road property claim income 1436421.01 1262316.21 1436421.01

Relocation compensation

1549865.12

income

Other 80783.48 270342.87 80783.48

Total 4011220.05 5311689.24 4011220.05

48. Non-Operation expense

In RMB

The amount of non-operating

Items Amount of current period Amount of previous period gains & losses

Road rehabilitation

1567847.87 1411624.28 1567847.87

expenditure

Loss & abandonment of

135447.06 184878.43 135447.06

non-current assets

Fine 153.62 25472.76 153.62

Other 107872.58 615563.11 107872.58

Total 1811321.13 2237538.58 1811321.13

49. Income tax expense

(1) Lists of income tax expense

In RMB

Items Amount of current period Amount of previous period

Current income tax expense 323321325.12 78051106.83

Deferred income tax expense 30703740.35 16076906.91

Total 354025065.47 94128013.74

(2) Adjustment process of accounting profit and income tax expense

In RMB

Items Amount of current period

Total 1554011963.22

Current income tax expense accounted by tax and relevant

388502990.81

regulations

Influence of income tax before adjustment 2881722.95

Influence of non taxable income -43012531.89

Impact of non-deductible costs expenses and losses 6149582.63

The current period does not affect the deferred tax assets

-496699.03

recognized deductible temporary differences or deductible loss

Income tax expense 354025065.47

50.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 23613918.60 15990606.72

Unit current account 38551853.57 39524470.85

Cancellation of Expressway Provincial Toll

55851800.00

Station Project

Total 62165772.17 111366877.57

（2）Other cash paid related to operating activities

In RMB

Items Amount of current period Amount of previous period

Management expense 14914357.27 16911831.76

Unit current account 10957032.13 9476588.65

Total 25871389.40 26388420.41

(3).Cash receivable related to other Financing activities

In RMB

Items Amount of current period Amount of previous period

Government infrastructure investment

97731650.00 13180600.00

subsidies

Total 97731650.00 13180600.00

（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 776869.75 1122177.00

Purchase of 21% equity consideration of

1221839292.00

Guanghui

Cash paid for the lease liabilities 5157973.11

Total 1227774134.86 1122177.00

51. 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 1199986897.75 116852967.84

Add：Credit loss preparation 1310999.95 236683.81Impairment loss provision of assets 2889394.16

Depreciation of fixed assets oil and gas assets and consumable biological

645076121.84 534959817.53

assets

Depreciation of Use right assets

Amortization of intangible assets 18687606.48 1528552.29

Amortization of Long-term deferred expenses 175312.50 228821.22

Loss on disposal of fixed assets intangible assets and other long-term

deferred assets

Fixed assets scrap loss 135447.06 184878.43

Loss on fair value changes

Financial cost 149343110.61 137383778.08

Loss on investment -172050127.56 -66754110.72

Decrease of deferred income tax assets 43283161.23 12995521.70

Increased of deferred income tax liabilities -12579420.88 3081385.21

Decrease of inventories -321592.91

Decease of operating receivables 19900483.49 -151425588.68

Increased of operating Payable -80544176.47 120390589.10

Net cash flows arising from operating activities 1815293217.25 709663295.81

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 3566075410.42 3492512939.41

Less: Beginning balance of cash equivalents 2846176803.89 3052977164.15

Add：End balance of cash equivalentsLess: Beginning balance of cash equivalents

Net increase of cash and cash equivalent 719898606.53 439535775.26

（2）Composition of cash and cash equivalents

In RMB

Items Balance in year-end Balance in year-Beginning

3566075410.42 2846176803.89

Cash

82551.70 54482.68

Of which: Cash in stock

Bank savings could be used at any time 3565475338.96 2845600152.23

Other monetary capital could be used at

517519.76 522168.98

any time

Balance of cash and cash equivalents at

3566075410.42 2846176803.89

the period end

52. The assets with the ownership or use right restricted

In RMB

Items Book value at the end of the period Restricted reason

Land reclamation funds in the fund

Monetary fund 1221200.00

escrow account

Total 1221200.00 --

Other：

As of June 30 2021 the Company's subsidiary Jingzhu Expressway Guangzhu Section Co. Ltd borrowed

616030000.00 yuan from Wuyang Sub-branch of Industrial and Commercial Bank of China (including

67670000.00 yuan in non-current liabilities due within one year and 548360000.00 yuan in long-term loans)

and provided a pledge guarantee of 19.2% of the project's toll interest (the right to collect tolls for vehicles

traveling on the Guangzhu section of Jingzhu Expressway and the revenue generated by owning such right).VIII. Equity in other entities

1. Equity in subsidiary

(1) The structure of the enterprise group

Shareholding

Main Places Registrat Ratio (%)

Name of Subsidiary Nature of Business Obtaining Method

of Operation ion Place indire

direct

Under the same

Guangzh Expressway

Guangfo Expressway Co. Ltd. Guangzhou 75.00% control business

ou Management

combination

Guangdong Expressway Technology Guangzh Expressway

Guangzhou 100.00% Investment

Investment Co. Ltd. ou Management

Under the same

Guangdong Guanghui Expressway Co. Guangzh Expressway

Guangzhou 51.00% control business

Ltd. ou Management

combination

Under the same

Jingzhu Expressway Guangzhu Section Guangzh Expressway

Zhongshan 75.00% control business

Co.Ltd. ou Management

combination

Yuegao Capital Guangzh Investment

Guangzhou 100.00% Investment

Investment(Guangzhou)Co. Ltd. ou management

Notes: holding proportion in subsidiary different from voting proportion: None

Basis of holding half or less voting rights but still been controlled investee and holding more than half of the

voting rights not been controlled investee: None

Significant structure entities and controlling basis in the scope of combination: None

Basis of determine whether the Company is the agent or the principal: None

Other notes：

Yuegao Capital Investment(Hengqin)Co. Ltd. was renamed as Yuegao Capital Investment(Guangzhou)Co.Ltd. in June 16 2021.

(2) Important Non-wholly-owned Subsidiary

In RMB

Shareholding Profit or Loss Dividends Distributed Equity Balance of the

Name of Subsidiary Ratio of Owned by the to the Minority Minority Shareholders

Minority Minority Shareholders in the in the End of the

Shareholders Shareholders in the Current Period Period

(%) Current Period

Guangfo Expressway Co. Ltd. 25.00% 31281677.09 37982900.91 108400149.47

Guangdong Guanghui Expressway

49.00% 253242000.77 304914520.46 1942453815.27

Co. Ltd.Jingzhu Expressway Guangzhu

25.00% 66602869.25 74680354.93 229763399.74

Section Co.Ltd.Holding proportion of minority shareholder in subsidiary different from voting proportion

None

(3) The main financial information of significant not wholly owned subsidiary

In RMB

Year-end balance

Name Non- current

Current assets Non- current assets Total assets Current Liabilities Total liabilities

liabilities

Guangfo Expressway Co. Ltd. 475156113.44 38940988.54 514097101.98 78736240.45 1760263.67 80496504.12

Guangdong Guanghui Expressway

1101624619.02 3341755936.81 4443380555.83 255443544.26 223745551.83 479189096.09

Co. Ltd.Jingzhu Expressway Guangzhu

117147025.52 2194887158.23 2312034183.75 460471665.13 932508919.65 1392980584.78

Section Co.Ltd.

（Continue）

Year-beginning balance

Name Non- current

Current assets Non- current assets Total assets Current Liabilities Total liabilities

liabilities

Guangfo Expressway Co. Ltd. 475293044.67 55900968.26 531194012.93 67267992.50 3520527.29 70788519.79

Guangdong Guanghui Expressway

1066412539.00 3451858995.85 4518271534.85 305774405.46 240583197.83 546357603.29

Co. Ltd.Jingzhu Expressway Guangzhu

118177442.22 2272633604.38 2390811046.60 470629108.30 968818396.62 1439447504.92

Section Co.Ltd.I n RMB

Amount of current period Amount of previous period

Name Total Cash flows from Total Cash flows from

Business income Net profit Comprehe operating Business income Net profit Comprehe operating

nsive activities nsive activities

income income

Guangfo Expressway Co. Ltd. 223491338.35 125126708.37 157947488.85 102043817.63 44304805.16 59016009.03

Guangdong Guanghui Expressway

1004523049.04 516820409.74 680781673.26 457060461.67 144984204.47 291757191.47

Co. Ltd.Jingzhu Expressway Guangzhu

560521671.83 266411477.01 379260592.42 232123838.11 40472322.41 136327743.66

Section Co.Ltd.(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

Proportion Accounting

treatment of

Main the

Registration

Name operating Business nature

place Directl Indirectl

investment of

place y y joint venture

or associated

enterprise

Zhaoqing Zhaoqing Expressway Equity

Zhaoqing Yuezhao Highway Co. Ltd. 25.00%

Management method

Guangdong Guangdong

Shenzhen Huiyan Expressway Co. Expressway Equity

Shenzhen Shenzhen 33.33%

Ltd. Management method

Guangdong Jiangzhong Expressway Zhongshan Expressway Equity

Zhongshan 15.00%

Co. Ltd. Management method

Ganzhou kangda Expressway Co. Expressway Equity

Gangzhou Ganzhou 30.00%

Ltd. Management method

Ganzhou Gankang Expressway Co. Expressway Equity

Gangzhou Ganzhou 30.00%

Ltd. Management method

Guangdong Yuepu Small Refinancing Hand all kinds of Equity

Guangzhou Guangzhou 15.48%

Co. Ltd small loans method

Equity

Guangyuan Securities Co. Ltd. Hefei Hefei Security business 2.37%

method

Research and

Equity

Hunan Lianzhi Technology Co. Ltd. Changsha Changsha experimental 10.10%

method

development

Notes to holding proportion of joint venture or associated enterprise different from voting proportion:

None

Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting

rights but does not have a significant impact:

Guangdong Jiangzhong Expressway Co. Ltd. Guangyuan Securities Co. Ltd.，Yuepu Small Refinancing Co.Ltd.and Hunan Lianzhi Technology Co.Ltd. holds 20% of the voting rights but has the power to participate in making decisions on their financial and ope

rating decisions and therefore deemed to be able to exert significant influence over the investee.

(2) Main financial information of significant joint venture

None

(3) Main financial information of significant associated enterprise

In RMB

Year-end balance/ Amount of current Year-beginning balance/ Amount of

period previous period

Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.Current assets 64029364790.07 61811795291.30

Non-current assets 36583479739.43 29078621012.06

Total assets 100612844529.50 90890416303.36

Current liabilities 56859657145.26 47486651848.27

Non-current Liabilities 12394345520.50 12549458553.05

Total liabilities 69254002665.76 60036110401.32

Minority Shareholders’ Equity 13172068.16 12544928.96

Shareholders’ equity attributable to

31345669795.58 30841760973.08

shareholders of the parent

Pro rata share of the net assets calculated 743330876.59 731381188.20

--Goodwill 207095632.54 207095632.54

The book value of equity investments in

950426509.13 938476820.74

joint ventures

Fair value of equity investment of

associated enterprises with open 824756178.54 927203934.72

quotation

Buinsess incme 2275384578.36 2115128481.79

Net profit 846756168.54 617902373.05

Other comprehensive income 84942800.98 99219704.73

Total comprehensive income 931698969.52 717122077.78

Dividends received from associates duri

10348258.20 11940297.90

ng the year

(4) Summary financial information of insignificant joint venture or associated enterprise

In RMB

Year-end balance/ Amount of current Year-beginning balance/ Amount of

period previous period

Joint venture： -- --Total amount of the pro rata calculation of

-- --

the following items

Associated enterprise： -- --Total book value of the investment 1475361117.24 1443470485.44

Total amount of the pro rata calculation -- --

--Net profit 102343851.05 -2270918.50

--Total comprehensive income 102343851.05 -2270918.50

Other note

The book value of the long-term equity investment of associates and joint ventures other than Guoyuan

Securities Co. Ltd is not higher than 5% of the company’s total owner’s equity attributable to the parent

company. The company considers other associates and joint ventures to be non-significant joint ventures and

associates.

(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the

Company

None

(6) The excess loss of joint venture or associated enterprise

None

(7) The unrecognized commitment related to joint venture investment

None

(8) Contingent liabilities related to joint venture or associated enterprise investment

None

4. Significant common operation

None

5. Equity of structure entity not including in the scope of consolidated financial statements

None

IX. Risks Related to Financial Instruments

The company has the main financial instruments such as bank deposits receivables and payables investments

loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these

financial instruments mainly include credit risk market risk and liquidity risk. The company’s management shall

manage and monitor these risks and ensure above risks to be controlled within certain scope.(I)The targets and policies of risk management

The target of risk management is to obtain the proper balance between the risk and benefit to reduce the

negative impact that is caused by the risk of the Company to the lowest level and to maximize the benefits of

shareholders and other equity investors. Based on the targets of risk management the basic strategy of the

Company’s risk management is to identify and analyze the risks which are faced by the Company establish

suitable risk tolerance baseline and proceed the risk management and supervise a variety of risks timely and

reliably and control the risks within a limited range.1.Market risk

（1）Foreign exchange risk

Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations generally. Our foreign exchange risk is

mainly related to Hong Kong Dollar. Besides annual distribution of B-share shareholder dividends other major

business activities of our Company are settled in RMB. During the reporting period due to the short credit period

of the Company's income and expenditure related to foreign currency it was not affected by foreign exchange

risk.

（2）Interest rate risk

The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainly

related to floating rate bank borrowings (see this Section VII 28). The Company's policy is to maintain the floating

interest rate of these borrowings and at the same time to reasonably reduce the risk of interest rate fluctuation by

shortening the term of a single loan and specifically agreeing on prepayment terms.

（3）Other price risk

The investments held by the Company are classified as financial assets measured at fair value and whose

changes are included in other comprehensive income and are measured at fair value on the balance sheet date.Therefore the Company bears the risk of changes in the securities market.2.Credit risk

As of June 30 2021 the largest credit risk exposure that may cause financial losses of the Company mainly

comes from the loss of financial assets of the Company caused by the failure of the other party to perform its

obligations.In order to reduce credit risk the Company only deals with recognized and reputable customers. In addition

the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequate

bad debt provisions are made for unrecoverable amounts. Consequently the Company's management believes that

the Company's credit risk has been greatly reduced.The Group's working capital is deposited in banks with higher credit rating so the credit risk of working

capital is relatively low.Financial assets overdue or impaired;

(1) Aging analysis of financial assets with overdue impairment: Not existed

(2) Analysis of financial assets that have suffered single impairment: Refer to "4 Other Receivables" in VII

and "10 Investment in Other Equity Instruments" in VII of this section for details.3.Liquidity risk

When managing liquidity risks the Company maintains sufficient cash and cash equivalents as deemed by

the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow

fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the

loan agreement.X. The disclosure of the fair value

1. Closing fair value of assets and liabilities calculated by fair value

In RMB

Closing fair value

Items Fir value Fir value Fir value

measurement items measurement items measurement items Total

at level 1 at level 2 at level 3

I. Consistent fair value

-- -- -- --

measurement

（3）Other equity instrument

889263688.32 748348301.73 1637611990.05

investment

Total assets continuously measured at

889263688.32 748348301.73 1637611990.05

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 30 2021 of 3.78 yuan the final calculation of fair value was

889263688.32 yuan.3. Fair value of financial assets and liabilities not measured at fair value

Items Fair value as of June 30 2021 Valuation technology Unobservable input value

Unlisted equity 748348301.73Discounted method of future cash Discount rate

investment flow

Due to the lack of recent information on the fair value of some other equity instruments and no significant

change in the operation of the invested company the Company takes the cost as its fair value estimate.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 infrastructure 26.8 billion yuan 24.56% 50.12%

Group Co. Ltd construction and

railway project

operation

Note ：

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 2021Registered capital: 26.8 billion yuan. It is a

solely state-owned limited company. Business scope：equity management organization of asset reorganization andoptimized 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

3. Information on the joint ventures and associated enterprises of the Company

Details refer to the Note VIII(3) Interests in joint ventures or associates

Information on other joint venture and associated enterprise of occurring related party transactions with the

Company in reporting period or form balance due to related party transactions in previous period:

Name Relation with the Company

Shenzhen Huiyan Expressway Co. Ltd. Associated enterprises of the Company

Zhaoqing Yuezhao Highway Co. Ltd. Associated enterprises of the Company

Ganzhou Kangda Expressway Co. Ltd. Associated enterprises of the Company

Ganzhou Gankang Expressway Co. Ltd. Associated enterprises of the Company

Guangdong Jiangzhong Expressway Co. Ltd. Associated enterprises of the Company

Guangdong Yuepu Small Refinancing Co. Ltd Associated enterprises of the Company

Hunan Lianke Technology Co. Ltd. Associated enterprises of the Company

4. Other Related parties

Name Relation with the Company

Guangdong Boda Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Chaohui Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong East Thinking Management Technology

Fully owned subsidiary of the parent company

Development Co. Ltd.Guangdong Gaoda Property Development Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Gaoen Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Expressway Media Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Guangfozhao Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Guangle Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Guangzhu West Line Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Humen Bridge Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Hualu Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Jiaotong Testing Co. Ltd Fully owned subsidiary of the parent company

Guangdong Traffic Industry Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Kaiyang Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Litong Technology Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Litong Property Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Union Electron Service Information technology

Fully owned subsidiary of the parent company

Co. ltd.Guangdong Union Electron Service Co. ltd. Fully owned subsidiary of the parent company

Guangdong Lulutong Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Luoyang Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Maozhan Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Shanfen Expressway Co. ltd. Fully owned subsidiary of the parent company

Guangdong Provincial Freeway Co.Ltd. Fully owned subsidiary of the parent company

Guangdong Highway Construction Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Communication Group Finance Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Read & Bridge Construction Development Co. Fully owned subsidiary of the parent company

Ltd.Guangdong Taishan Coastal Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Tongyi Expressway Service Area Co. Ltd Fully owned subsidiary of the parent company

Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Yangmao Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Yuegan Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Yueyun Traffic Rescue Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Zhaoyang Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangshenzhu Expressway Co. Ltd. Fully owned subsidiary of the parent company

Guangzhou Xinyue Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company

Guangzhou Xinyue Asphalt Co. Ltd. Fully owned subsidiary of the parent company

Guangzhou Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company

Yunfo Guangyun Expressway Co. Ltd Fully owned subsidiary of the parent company

Guangdong Traffic Development Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Tianlu New Energy Investment Co. Ltd. Fully owned subsidiary of the parent company

Guangdong Communication Planning & Design Institute Co.Shares of parent company

Ltd.Guangzhongjiang Expressway Project Management Dept Managed by the parent company

Hongkong- Zhuhai-Macao Connection line management center Managed by the parent company

GuangzhouAitesi Communication equipment Co. Ltd. Associated enterprises controlled by the same parent company

Jiangmen Jianghe Expressway Co. Ltd. Associated enterprises controlled by the same parent company

Guangdong Shenshan Expressway Co. Ltd. Associated enterprises controlled by the same parent company

Guangdong Jingzhu Expressway Guangzhu North Section Co.Associated enterprises controlled by the same parent company

Ltd.Foshan Guangshan Expressway Co. Ltd. Associated enterprises controlled by the same parent company

Guangdong Feida Traffic Engineering Co. Ltd. Associated enterprises controlled by the same parent company

Poly Changda Engineering Co. Ltd. Shares of parent company

Guangdong Changda Road Conservation Co. Ltd. Shares of parent company

Guangdong Road Network Digital Media Information

Joint venture of parent company

Technology Co. Ltd

Guangdong Xiangfei Highway Engineering Supervision Co.Subsidiary of the parent company

Ltd

Guangdong Jiangzhao Expressway Management Center Other significant impacts of 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

Content of related Amount of current

Related parties Amount of last period

transaction period

1Business cost

Guangdong Union electronic services co. Ltd. Service 14427549.75 6519360.51

Boly Changda Engineering Co. Ltd. Service 4459339.00 51358887.00

Guangdong Feida Traffic Engineering Co. Ltd. Maintenance 2066264.07 2020413.97

Guangdong East Thinking Management Technology

Maintenance，Service 30000.00Development Co. Ltd.Guangdong Humen Bridge Co. Ltd. Service 20981.64

Subtotal 20983152.82 59919643.12

2.Financial expenses

Jiangzhou Expressway Co. Ltd. Interest 27405.00 712530.00

Subtotal 27405.00 712530.00

3.Management expenses

Guangdong East Thinking Management Technology OAMaintenance

60000.00 60000.00

Development Co. Ltd.Guangdong Union electronic services co. Ltd. Service 17094.71

Subtotal 60000.00 77094.71

4.Construction in process

Maintenance Purchase assets 141402869.60 47564260.01

Guangdong Communication Planning & Design

Purchase assets 7455615.00

Institute Co. Ltd.Guangdong Xinyue traffic Investment Co. Ltd. Purchase assets 584557.32 1908423.62

Guangdong Xiangfei Highway Supervision Co. Ltd. Purchase assets 208829.00 89603.00

Guangdong Guanyue Road & Bridge Co. Ltd. Purchase assets 3068158.00

Guangdong Jiaoke Testing Co. Ltd. Purchase assets 391026.50

Guangdong Hualu Traffic Technology Co. Ltd. Purchase assets 2002200.00

Subtotal 149651870.92 55023671.13

Related transactions on sale goods and receiving services

In RMB

行情