2022 Annual Report
Guangdong Provincial Expressway Development Co. Ltd.2022 Annual Report
March 2023
12022 Annual Report
I. Important Notice Table of Contents and Definitions
The Board of Directors and the directors Supervisory Committee and supervisors and Senior Executives of the
Company hereby warrant that at the year there are no misstatement misleading representation or important
omissions in this report and shall assume joint and several liability for the authenticity accuracy and
completeness of the contents hereof.Mr.Miao Deshan The Company leader Mr. Wang Chunhua General Manager Mr. Lu Ming Chief financial
officer and the Ms.Zhou Fang the person in charge of the accounting department (the person in charge of the
accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this annual
report.All the directors attended the board meeting for reviewing the Annual Report.The toll revenues of Expressway is main source of the major business income of the company The charge
standard of vehicle toll must be submitted to the same level people's government for review and approval after the
transport regulatory department of province autonomous region or municipality directly under the central
government in conjunction with the price regulatory department at the same level consented upon examination.Therefore the adjustment trend of the charge price and the charge price if has the corresponding adjustment in the
future price level when the cost of the company rises still depend on the approval of relevant national policies and
government departments and the company isn't able to make timely adjustment to the charge standard in
accordance with the its own operation cost or the change of market supply demand. So the change of charge
policy and the adjustment of charge standard also have influence on the expressways operated by the company to
some extent. So the charging policy changes and charges adjustment will affect the highways operation of the
company.The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
2090806126 for the base the Company would distribute cash dividend to all the shareholders at the rate of
CNY 4.28 for every 10 shares (with tax inclusive) 0 bonus shares（ including tax）and no reserve would be
converted into share capital.
22022 Annual Report
Table of Contents
I.Important Notice Table of contents and Definitions
II. Company Profile & Financial Highlights.III. Management Discussion & Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial Report
32022 Annual Report
Documents available for inspection
1. Accounting statements carried with personal signatures and seals of legal representative General Manager
Chief Financial officer and Financial Principal.
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures
of certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.
42022 Annual Report
Definition
Terms to be defined Refers to Definition
Reporting period This year Refers to January 1 2022 to December 31 2022
The annual report of the company was approved by the board of directors
Reporting date Refers to
on 2022 that is March 20 2023
YOY Refers to Compared with 2021
The Company /This Company Refers to Guangdong Provincial Expressway Development Co.Ltd.Communication Group Refers to Guangdong Communication Group Co. Ltd.Guangfo Company Refers to Guangdong Guangfo Expressway Co. Ltd.Guangdong Expressway Capital Refers to Yuegao Capital Investment (Guangzhou) Co. Ltd.Guanghui Company Refers to Guangdong Guanghui Expressway Co. Ltd.Guangdong Expressway
Refers to Guangdong Expressway Technology Investment Co. Ltd.Technology
52022 Annual Report
II. Company Profile & Financial Highlights.
1.Company Profile
Stock abbreviation: Expressway A Expressway B Stock code 000429、200429
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 广东省高速公路发展股份有限公司
Abbreviation of Registered粤高速
Company (if any)
English name (If any) Guangdong Provincial Expressway Development Co.Ltd.English abbreviation (If any) GPED
Legal Representative Miao Deshan
Registered address 85 Baiyun Road Guangzhou Guangdong Province
Postal code of the Registered
510100
Address
Historical change of the 1992—1999，4/FDongjian BuildingNo.503Dongfeng Road Guangzhou;Since 1999 85 Baiyun
company's registered address Road Guangzhou Guangdong Province
45-46/F Litong Plaza No.32 Zhujiang East Road Zhujiang New City Tianhe Disrtict
Office Address
Guangzhou
Postal code of the office address 510623
Internet Web Site www.gpedcl.com
E-mail ygs@gdcg.cn
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Yang Hanming Liang Jirong
Contact 46/F Litong Plaza No.32 Zhujiang East Road Zhujiang 45/F Litong Plaza No.32 Zhujiang East Road Zhujiang
address New City Tianhe District Guangzhou New City Tianhe District Guangzhou
Tel 020-29004619 020-29004523
Fax 020-38787002 020-38787002
E-mail Hmy69@126.com 139221590@qq.com
3. Information disclosure and placed
Newspapers selected by the Company for information Securities Times China Securities Shanghai Securities Daily
disclosure and Hongkong Commercial Daily.Internet website designated by CSRC for publishing the Annual
www.cninfo.com.cn
report of the Company
The place where the Annual report is prepared and placed Securities affair Dept of the Company
4.Changes in Registration
Organization Code 91440000190352102M
Changes in principal business activities since
No change
listing (if any)
Changes is the controlling shareholder in the On November 2000 In accordance with Cai Guan Zi (2008) No. 109
62022 Annual Report
past (is any) Document of Ministry of Finance and Yue Ban Han (2000) No. 574 Document
of General Office of Guangdong People's Government the state-owned shares
of Guangdong Expressway originally entrusted to Guangdong Expressway
Company (now renamed as "Guangdong Provincial Expressway Co. Ltd.")
for management were transferred to Guangdong Communication Group Co.Ltd. for holding and management. After the transfer of state-owned shares
Guangdong Communication Group Co. Ltd. became the largest shareholder of
the Company. The nature of equity was defined as state-owned shares.
5. Other Relevant Information
CPAs engaged
Yong Tuo Cerified Public Accountants(Special General
Name of the CPAs
Partnership)
13/F 2 Building No.1 North Street Guandongdian Chaoyang
Office address：
District Beijing
Names of the Certified Public Accountants as the signatories Shi ShaoyuHuang Zhiyan
The sponsor performing persistent supervision duties engaged by the Company in the reporting period.□ Applicable√ Not applicable
The Financial advisor performing persistent supervision duties engaged by the Company in the reporting period
□ Applicable√ Not applicable
6.Summary of Accounting data and Financial index
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes□No
Changes of this
2022 2021 period over sameperiod of Last year 2020
（％）
Operating income（Yuan） 4168634113.98 5288057677.93 -21.17% 3790348876.26
Net profit attributable to the shareholders
1277069521.901700406981.99-24.90%867842774.78
of the listed company（Yuan）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 1311599314.34 1693091639.41 -22.53% 704821643.20
listed company（Yuan）
Cash flow generated by business
2752026558.383669744721.16-25.01%2636187241.05
operation net（Yuan）
Basic earning per share(Yuan/Share) 0.61 0.81 -24.69% 0.42
Diluted gains per share(Yuan/Share) 0.61 0.81 -24.69% 0.42
Weighted average ROE(%) 14.30% 20.11% -5.81% 8.27%
Changed over last
End of 2022 End of 2021 End of 2020
year（％）
Gross assets（Yuan） 20267197153.88 18875766799.31 7.37% 19748578658.11
Net assets attributable to shareholders of
9075877244.128982437985.171.04%7933136499.11
the listed company（Yuan）
The lower of the company’s net profit before and after the deduction of non-recurring gains and losses in the
72022 Annual Report
last three fiscal years is negative and the auditor's report of the previous year shows that the Company’s going
concern ability is uncertain.□ Yes √No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative.□ Yes √No
7.The differences between domestic and international accounting standards
1． Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable
None
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.□ Applicable √Not applicable
None
8.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 1066130065.73 991290743.95 1230638061.98 880575242.32
Net profit attributable to the shareholders of the listed
430950001.90342836849.78417932338.2485350331.98
company
Net profit after deducting of non-recurring gain/loss
404041784.19339048311.00416174263.76152334955.39
attributable to the shareholders of listed company
Net Cash flow generated by business operation 771364037.16 672187229.14 939303258.72 369172033.36
Whether significant variances exist between the above financial index or the index with its sum and the
financial index of the quarterly report as well as semi-annual report index disclosed by the Company.□Yes √No
9.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMBItems Amount Amount(2022) (2021 Amount (2020) Notes）
Non-current asset disposal gain/loss(including the write-off part for
62389.244350214.54-8261533.18
which assets impairment provision is made)
Government subsidies recognized in current gain and loss(excluding
those closely related to the Company’s business and granted under the 12414047.87 16348006.07 8359291.82
state’s policies)
Net gain and loss of the subsidiary under the common control and
produced from enterprise consolidation from the beginning of the period 546213524.55
to the consolidation date
Gain and loss from change of the fair value arising from transactional
monetary assets transactional financial liabilities as held as well as the
investment income arising from disposal of the transactional monetary 10400000.00
assets transactional financial liabilities and financial assets available for
sale excluding the effective hedging transaction in connection with the
82022 Annual Report
Company’s normal business
Gain/loss from external entrusted loan 25515.00
The impairment provision for the advance expenses that have occurred
-97749481.71
but need to be defined from the source of funds
Net amount of non-operating income and expense except the aforesaid
-1798078.90-5840734.56-1069827.30
items
Other non-recurring Gains/loss items 14877866.34 1252349.09 974321.89
Less :Influenced amount of income tax -5627816.96 4027139.54 2214.32
Influenced amount of minor shareholders’ equity (after tax) -21610132.76 4767353.02 383192431.88
Total -34529792.44 7315342.58 163021131.58 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
√Applicable□ Not applicable
Due to the special nature of the impairment provision for management and maintenance expenses advanced by
the Guangzhou-Foshan Expressway to be clarified it will affect the normal judgment of the Company's
operating performance and profitability by the user of the report.For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses
and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information
Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been
defined as recurring gains and losses it is necessary to explain the reason.□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
92022 Annual Report
III. Management Discussion & Analysis
I. Industry information of the Company during the reporting period
The Company's main business is the investment construction charging and maintenance management of toll
highways and bridges which shall be classified into the road transport industry.Highway industry is the basic and leading service industry of national economy which can rationally allocate
relevant resources improve the quality and efficiency of economic operation and play a leading role in the
transportation industry. As an important part of the highway industry the expressway is an important national
resource which is characterized by high driving speed large traffic capacity low transportation cost and safe
driving and plays an important role in promoting national economic growth improving people's live quality and
safeguarding national security.With the basic penetration of the "ten-vertical and ten-horizontal" comprehensive transportation corridor and
the basic completion of the "71118" national expressway network planning China's expressway network has been
continuously extended with significantly increased industry development. According to the statistical data of the
2021 Statistical Bulletin on Development of Transportation Industry issued by the Ministry of Transport by the
end of 2021 the total mileage of expressways in China has reached 169100 kilometers with an increase of 8100
kilometers and a year-on-year increase of 5.03%.Despite the rapid development of China's expressway industry and the initial scale of expressway trunk lines
and networks there is still a certain gap between China and the developed countries in terms of convenience and
unobstruction. China's expressway construction focused on connecting large cities above designated scale at first
and has turned to inter-provincial connectivity and connected other cities in recent years. There is still a lack of
direct and effective connection between some prefecture-level cities with large population and economic
aggregate and provincial capitals as well as between prefecture-level cities. Moreover the expressway
construction in eastern China started earlier and the road network density is high but the road network density in
the vast central and western regions is still low. With China's economic development stepping into a new normal
the national economy is constantly growing the strategies such as coordinated development of Beijing-Tianjin-
Hebei regional integration of the Yangtze River Delta development of the Yangtze River Economic Belt and
Guangdong-Hong Kong-Macao Greater Bay Area construction are further advanced the whole society's demand
for supporting services of expressways is expected to increase continuously and China's expressway industry still
witnesses a large development potential in the future.As an important infrastructure industry for the development of national economy most of the expressway
transportation demands are rigid demands which are less affected by macroeconomic fluctuations and less
cyclical. As the operating income of expressway enterprises is mainly in cash and the cash flow is abundant it
ensures the stability and security of expressway industry operation and finance. When the economy is booming
the rapid growth of traffic can drive the development of the industry to a certain extent; during the period of
economic adjustment the expressway industry can better resist the market impact caused by macroeconomic
changes with its unique rigid demands. Therefore the expressway industry is characterized by strong anti-risk
ability and stable investment income.In September 2022 the Ministry of Transport issued the "Notice on smooth launch in Phased for Reduction a
nd Exemption of Toll Road Truck Tolls". On the basis of continuing to implement the existing various toll reduct
ion policies the national toll roads will be unified for trucks. The fee will be reduced by another 10% and the ti
me frame will start from 00:00 on October 1 2022 and end at 24:00 on December 31 2022. This policy will hav
e a certain impact on the toll revenue of the company's shareholding expressway in the fourth quarter of 20
22.
102022 Annual Report
II.Main Business the Company is Engaged in During the Report Period
The Company's main business in developing and operating expressway and big bridges. It is one of the main
institutions of developing expressway and big bridge in Guangdong Expressway System. The expressway industry
is the industry helped by government.The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai Expressway Jingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultation while investing in
Shenzhen Huiyan Expressway Co. Ltd. Guangdong Jiangzhong Expressway Co. Ltd. Zhaoqing Yuezhao Expre
ssway Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke
Technology Petty Loan Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd.Hunan Lianzhi Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd. CMST Nanjing
Intelligent Logistics Technology Co. Ltd.and Shenzhen Garage Electric Pile Technology Co. Ltd.As of the end of the reporting period the company’s share-controlled expressway is 306.78 km and the share-
participation expressway is 295.88 km.III. Analysis On core Competitiveness
The toll revenue of expressway industry mainly depends on the regional economic development. The
regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokaiexpressway controlled by the company are part of the National Expressway Network Planning-“Five vertical andseven horizontal” Jingzhu Expressway Guangzhu Section is a fast and convenient expressway Guanghui
Expressway is an important section of the national key highway-the 15th Hengshanwei to Yunnan Qingshuihe
Highway And many of the company’s equity-participation expressways that are part of the main skeleton of the
Guangdong Provincial Expressway Planning-“Ten vertical and five horizontal” which provides a strong
guarantee for stable traffic volume. Meanwhile the regional economy is the critical factor that influences the
traffic volume as Guangdong province is the economically developed region with years’ continuous high growth
of GDP so that provides the stable rising demand for the company.IV. Main business analysis
Ⅰ.General
(1) The overall situation
In 2022 the Company adhered to the guidance of Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era adhered to the general principle of seeking progress while maintaining stability
coordinated and promoted the implementation of the Company's "Fourteenth Five-Year Plan" strategy and
annual key tasks comprehensively deepened reforms while focusing on main responsibilities and main
businesses fulfilled the responsibilities of state-owned enterprises progressed solidly in high-quality
development and achieved a state-owned capital value preservation and appreciation rate of 113.98%.
1) Solidly carry out the work related to the reconstruction and expansion of the expressway project.
Successfully completed the investment decision-making process for the reconstruction and expansion project of
Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway a provincial key construction project invested by
the company; Continue to follow up the progress of the reconstruction and expansion projects of Zhongshan–
Jiangmen Expressway and Huizhou-Shenzhen Expressway and timely handle the procedures for shareholders'
investment according to the construction progress of the construction period to ensure the capital demand of the
reconstruction and expansion projects; Carry out preliminary research on the reconstruction and expansion
projects of Guangzhou-Zhaoqing Expressway and Guangzhou-Huizhou Expressway.
112022 Annual Report
2) Continuously optimize the layout of state-owned capital. First efficiently complete the 100% equity
transfer of Guangdong Hi-Tech effectively adjust and optimize the Company's asset structure and contribute to
the Company's centralized main business and efficient development; Second focus on the national "double
carbon" strategy and invest in new energy new technologies and new platform projects. Relying on the
platform of Yuegao Capital after the investment in Lianzhi Science and Technology Project and Yuetong
Qiyuanxin Project was completed in 2020 and 2021 in 2022 add new investment in Nanjing Smart Logistics
Technology Co. Ltd. and Shenzhen Garage Electric Pile Technology Co. Ltd. to steadily promote the equity
investment business of Yuegao Capital's non-expressway projects and inject new momentum into the
sustainable development of Guangdong Expressway.
3) With the goal of reducing costs and increasing efficiency enhance the vitality of increasing income and
creating efficiency. First strengthen rigid constraints to control costs and expenses strictly control key links
and key areas accurately organize holding section companies to study effective measures and fully promote the
implementation of the work goal of "achieving the monthly goal by fulfilling ten-day goal and achieving the
seasonal goal by fulfilling the monthly goal"; Second reduce capital cost and improve utilization efficiency.Reduce financial expenses by repaying loans in advance promoting decrease in interest rate of existing loans
and actively revitalizing existing funds; Third make overall planning and coordination in advance to guarantee
funds. Actively seek low-cost financing by opening up financing channels.
4) Take multiple measures to ensure stability and promote benefits. First well ensure smooth flow safety
and excellent service. Second effectively improve the accuracy of inspection escape combat. Third carry out
the road guide check the navigation software path rate service area and site service facility information
mileage and control construction information etc. Fourth strengthen the management of expressway service
points and vigorously promote the issuance of ETC.
(2) Participate in the holding of the highway situation
In 2022 the Company's operating income decreased significantly due to the Public health events in the
province that spread at multiple points and lasted for a long time and the 10% toll reduction for toll trucks on
toll roads in the fourth quarter. The traffic volume and toll income of participating and holding expressways are
as follows:
Volume of vehicle traffic in Increase Toll income in 2022 Increase /Decrease(%
2022（Ten thousands vehicles） /Decrease(%) （Ten thousands）
Guangfo Expressway 7799.42 -1.63% 6560.05 -85.38%
Fokai Expressway 7648.24 -10.80% 129621.28 -10.88%
Jingzhu Expressway 5673.10 -20.83% 90273.43 -20.87%
Guangzhu East Section
Guanghui Expressway 7550.65 -8.98% 183121.92 -13.87%
Huiyan Expressway 4471.36 -13.60% 19950.28 -17.00%
Guangzhao Expressway 3391.71 -11.05% 46380.80 -13.42%
Jiangzhong Expressway 5117.72 -23.74% 34198.72 -28.25%
Kangda Expressway 116.22 -20.17% 27485.46 -12.15%
Gankang Expressway 393.98 -14.50% 18879.86 -5.15%
Guangle Expressway 3758.49 -4.28% 289900.12 -13.62%
Note. According to the informal letter No. 24-[2022] Yue Transportation Operation-"Notice of the
Department of Transportation of Guangdong Province on Issues Concerning the Expiration of Toll Collection
of Guangfo Expressway" issued by Guangdong Provincial Department of Transportation Guangfo Expressway
shall stop toll collection from 0:00 on March 3 2022.
122022 Annual Report
2. Revenue and cost
(1)Component of Business Income
In RMB
2022 2021 Increase
Amount Proportion Amount Proportion /decrease
Total operating revenue 4168634113.98 100% 5288057677.93 100% -21.17%
Industry
Highway transportations 4095766725.59 98.25% 5170312170.97 97.77% -20.78%
Other 72867388.39 1.75% 117745506.96 2.23% -38.11%
Product
Highway transportations 4095766725.59 98.25% 5170312170.97 97.77% -20.78%
Other 72867388.39 1.75% 117745506.96 2.23% -38.11%
Area
Guangfo Expressway 65600461.66 1.57% 448854642.12 8.49% -85.38%
Fokai Expressway 1296212805.59 31.09% 1454377306.80 27.50% -10.88%
Jingzhu Expressway Guangzhu Section 902734286.55 21.66% 1140880993.81 21.57% -20.87%
Guanghui Expressway 1831219171.79 43.93% 2126199228.24 40.21% -13.87%
Other 72867388.39 1.75% 117745506.96 2.23% -38.11%
Sub-sales model
Highway transportations 4095766725.59 98.25% 5170312170.97 97.77% -20.78%
Other 72867388.39 1.75% 117745506.96 2.23% -38.11%
(2)Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
In RMB
Increase/decre Increase/decrea Increase/decrea
Gross ase of revenue se of business
se of gross
Turnover Operation cost profit in the same cost over the
profit rate over
period of the same period of the samerate(%) previous previous year period of the
year(%) (%) previous year(%)
Industry
Highway
4095766725.591550367576.4462.15%-20.78%-17.29%-1.60%
transportations
Product
Highway
4095766725.591550367576.4462.15%-20.78%-17.29%-1.60%
transportations
Area
Guangfo Expressway 65600461.66 15920478.79 75.73% -85.38% -89.09% 8.25%
Fokai Expressway 1296212805.59 582933531.68 55.03% -10.88% -18.36% 4.13%
Jingzhu Expressway
902734286.55342515188.6262.06%-20.87%-7.68%-5.42%
Guangzhu Section
Guanghui Expressway 1831219171.79 608998377.35 66.74% -13.87% -5.36% -3.00%
Sub-sales model
Highway
4095766725.591550367576.4462.15%-20.78%-17.29%-1.60%
transportations
132022 Annual Report
Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main
business based on latest on year’s scope of period-end.□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
□ Yes √ No
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Industry category
In RMB
Industry 2022 2021 Increase/
category Items Amount Proportion in the Amount Proportion in the
Decrease
operating costs (%) operating costs (%) (%)
Highway Depreciation
transportations and Amortized 1024154288.83 64.56% 1257315758.33 65.16% -18.54%
Highway Out of pocket
transportations expenses 526213287.61 33.17% 617154159.89 31.99% -14.74%
Other Other 35981459.04 2.27% 55042107.34 2.85% -34.63%
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
□Yes □No
During the reporting period the Company transferred 100% equity of its wholly-owned subsidiary
Guangdong Expressway Technology Investment Co. Ltd. to Guangdong Litong Technology Investment Co.Ltd. on March 29 2022 which will no longer be included in the scope of consolidated financial statements at
the end of this period.
(7)Relevant Situation of Significant Changes or Adjustment of the Business Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
□ Applicable √Not applicable
3.Expenses
In RMB
2022 2021 Increase/Decrease(%) Notes
Administrative expenses 191426081.46 223605442.46 -14.39%
Financial expenses 191071151.10 221714312.76 -13.82%
R & D expenses 14591773.12 13270938.73 9.95%
142022 Annual Report
4. Research and Development
√ Applicable □ Not applicable
Name of main R&D project Project purpose Project Goal to be achieved Expected impact on the future developmentprogress of the Company
(1) Realize the real-time monitoring of the
structural safety monitoring system and
forewarn the bridge structural abnormality;
Realize the real-time structural damage
On the basis of following the Technical identification of the structure. (2) Monitor the
Guidelines for the Pilot Construction of track of passing ships send out sound and light
Research on the key Structural Health Monitoring System for alarm signals and warn the yawing ships
technologies of the Highway Long Span Bridges combined with through radio stations and AIS in case of illegal
construction of anti- the technical characteristics of Foshan-Kaiping yawing events; Broadcast the navigation of Effectively improve the safety management
collision monitoring and Expressway and the requirements of ships passing under the bridge and give safety and control level of bridge and culvert
early warning system and information construction in transportation field Completed warning tips. (3) Effectively prevent the structure gradually realize the digitalization
the transformation of safety in Guangdong Province the existing health probability of the bridge being hit by a ship and intelligence of work and management
monitoring system for monitoring system of Jiujiang Bridge on during the operation period extend the service and effectively promote the corporate
Foshan-Kaiping Expressway Foshan–Kaiping Expressway was optimized life of the bridge and ensure the safety of the governance efficiency to a higher level.bridge cluster and upgraded and anti-collision monitoring bridge. (4) Implement the anti-collision
systems were added to the other three monitoring system for 4 bridges of Foshan-
navigation-related super-large bridges. Kaiping Expressway and the visual large-screen
display system for Jiujiang Bridge safety
monitoring system. to realize the visual
management of bridge facilities and navigation
safety and improve the management level.
(1) Study the mechanism of disease coupling Form a complete set of intelligent O&MCombined with the management and technology for super-long concrete bridges
maintenance needs of extra-large bridges and establish the probability model of resistance with independent intellectual property rights
realize the scientific monitoring and processing attenuation of existing bridges. (2) Put forward
Research on maintenance of data of super-large bridges accurate the bridge condition evaluation method and
in the perspective of diagnosis → evaluation
and management scheme of evaluation of bridge service status accurate Completed provide reasonable and scientific suggestions
→ treatment which further clarified the key
for future maintenance and maintenance points of super-long bridge management andsuper-large bridge and efficient early warning of fault risk rapid
treatment of disease damage and scientific countermeasures. (3) Establish the emergency
maintenance achieved a targeted goal in
state of bridges and the measures to deal with practical work effectively improved thedecision-making of future management and
maintenance. special weather and put forward the regulations
management and maintenance level of the
on the management of bridge engineering files. Company's super-large bridges and ensuredstructural safety.
(1) Establish a complete BIM data application This system integrates the basic information
Break the technical barriers of various system suitable for bridge operation stage. (2) monitoring information and O&MThrough the fusion of multi-source data information of bridge establishes a
Research on intelligent maintenance databases through the explorationand research of maintenance information integrate into a standardized and refined structured database and combines the basicmonitoring system of database background which provides data workflow of the management and
Jiujiang Bridge based on technology and algorithm realize the Completed
BIM+GIS integration analysis and application of
support for bridge maintenance decision- maintenance unit to display the bridge
maintenance data and improve the efficiency making and medium- and long-term situation river situation equipment
of maintenance management. maintenance planning and form a mode of joint construction situation and equipmentmanagement by one platform and multiple working condition in a visual way and
systems. monitor the bridge situation in real time so
152022 Annual Report
Name of main R&D project Project purpose Projectprogress Goal to be achieved
Expected impact on the future development
of the Company
as to significantly improve the management
and maintenance efficiency and save the
management and maintenance cost through
information means.
(1) Based on Beidou intellisense Internet of
Things cloud computing big data and other
Propose a set of slope safety monitoring and technologies plan to build an integrated
early warning system with Beidou high- Internet of Things platform of "cloud
precision positioning technology based on the application and terminal" to realize intellisense The application of high slope monitoring and
design data operating environment and intelligent analysis and three-dimensionalvisualization of high slopes the trinity early warning system based on Beidou high-geological conditions of the slope along
Foshan-Kaiping Expressway and considering interconnection and fusion of "cloud
precision positioning technology in
Research on safety expressway slope disaster monitoring can
monitoring scheme of high the difficulties encountered in the daily
application and terminal" which realizes the greatly reduce a lot of labor input and
slope management and maintenance of the slope
Completed storage management and integration of 1
realize the intelligent monitoring of the target million project data and improves the
management costs and realize 24-hour all-
slope through the overall monitoring and long- processing efficiency of high slope intelligent
weather online monitoring and alarm
term analysis of the slope information monitoring rapid disaster identification early
improve the timeliness of slope disease
warning evaluation and emergency treatment discovery and disposal and ensure the safeparameters which provides decision-making
basis for the daily management maintenance information chain. (2) Realize the out-of-limit
and stable operation of expressway.and repair of the slope. grading warning system of slope monitoringand diversify the release methods of warning
information to ensure that warning information
is sent to supervisors in real time.On the basis of the brand-new UHPP
In view of the technical defects of ordinary NovaChip ultra-thin wear layer technology raw
ultra-thin asphalt wear layer at present carry material formula and technology and the new
out in-depth research from the aspects of grading type with stable frame embedded The research of this technology has practical
Research on application of materials technology and design concept and
structure and high asphalt content form a large significance for improving the road
propose a complete set of key technologies for traffic flow section which is not easy to performance and prolonging the service lifekey technologies of pavement wear layer with drainage and noise Completed maintain and then extend it to the durable of asphalt wear layer and has long-termpavement preventive reduction of UHPP and NovaChip ultra-thin environmental protection pavement wear layer significance for reducing the maintenancemaintenance wear layer including material composition under different working conditions such as old cost of the Company building green and
mix design technical index requirements asphalt pavement old cement pavement bridge low-carbon roads and environmental
construction technology and quality control deck tunnel and steel bridge deck and improve protection.methods. the existing thin-layer overlay system in allaspects including anti-sliding noise reduction
crack resistance and durability.By establishing finite element models with (1) Investigate and classify the existing single- By accurately evaluating the lateral anti-
Research on key different parameter variables analyze the column pier bridges according to their different overturning stability of the single-column
technologies of anti- sensitivity between each parameter and the overturning failure characteristics study the pier bridge and mastering the lateral anti-
overturning of single- overturning stability of single-column pier unique transverse overturning process of overturning safety of the built single-column
column pier bridge and bridge to obtain the main parameters affecting Completed various overturning structures and obtain the pier bridge greatly reduce the maintenance
splicing of old and new the overturning stability of the structure and main parameters affecting the overturning cost in the life cycle of the bridges to avoid
bridges provide theoretical support for the design focus stability of the structures. (2) Carry out the anti-overturning accident of the bridges;.of the anti-overturning performance of the comparison analysis on the existing bridge Through the reference scheme of anti-
162022 Annual Report
Name of main R&D project Project purpose Project Goal to be achieved Expected impact on the future developmentprogress of the Company
bridge. Study the reasonable splicing form structures combined with the lateral anti- overturning reinforcement design of old
through the research and demonstration of the overturning evaluation standard and form the bridges optimize the anti-overturning design
feasibility of bridge splicing and form the existing single-column pier bridge of old bridges reduce the reinforcement cost
technical solution of large-flow expressway reinforcement design gallery. (3) Investigate the and improve the use efficiency of funds;
splicing. diseases of longitudinal splicing of existing Form the key technology of longitudinal
bridges study the disease mechanism of splicing maintenance of existing bridge
longitudinal splicing technology for different structures which can provide reliable
bridge structures and form the key technology reference for expressway reconstruction and
of longitudinal splicing maintenance of existing expansion design and also provide technical
bridge structures. support for subsequent maintenance and
repair ensuring the safety of bridges which
is of great significance for ensuring traffic
safety.Both Huzhou Bridge and Yayao Bridge have The ship over-height detection system is to
the possibility of ships of over-height colliding improve the safety of waterway operation by
with the bridge so it is necessary to carry out using modern detection means and reduce the
the research on the alarm technology for damage to river-crossing bridges and auxiliary
collision with bridge by ship of over-height facilities caused by ships of over-height driving
monitor the height of of the ship passing under into navigable span. The system can accurately
the bridge by high-tech means send out alarm detect the ship over-height guide the ship of The installation and application of the systemResearch on monitoring and signals to warn the ships of over-height in case over-height to avoid safely and take warning has a good early warning function for thealarm system for collision of illegal over-height events and automatically Completed shots on the spot timely which is conducive to collision avoidance of navigable bridgeswith bridge by ship of over- shoot videos and send them to the monitoring improving the passing efficiency eliminating which can timely observe the situation on theheight center of the management department for hidden dangers facilitating management and spot and effectively improve the level of
evidence collection so as to take further escorting the navigation. The relevant maritime bridge management and maintenance.management measures. The research of this departments and transportation departments pay
project is of great significance for protecting more and more attention to the research on
the structural safety of the bridge on the collision with bridge by ship of over-height and
waterway and improving the management level over-height alarm and early warning while
of the bridge and waterway. formulating the management system of bridgearea waters.
172022 Annual Report
Company's research and development personnel situation
2022 2021 Increase /decrease
Number of Research and
Development persons (persons) 25 12 108.33%
Proportion of Research and
Development persons 0.81% 0.40% 0.41%
Academic structure of R&D personnel
Bachelor 25 11 127.27%
Master 0 1 -100.00%
Age composition of R&D personnel
Under 30 years old 0 1 -100.00%
30-40 years old 2 9 -77.78%
Over 40 years old 23 2 1050.00%
The Company's R & D investment situation
2022 2021 Increase /decrease
Amount of Research and
Development Investment (In RMB) 14591773.12 13974899.53 4.41%
Proportion of Research and
Development Investment of 0.35% 0.26% 0.09%
Operation Revenue
Amount of Research and
Development Investment 0.00 703960.80 -100.00%
Capitalization (In RMB)
Proportion of Capitalization Research
and Development Investment of
Research and Development 0.00% 5.04% -5.04%
Investment
Reasons and influence of significant changes in R&D personnel composition of the Company
□Applicable □ Not applicable
In 2022 the R&D personnel of the Company were mainly the R&D personnel of Guangdong Guangzhou-
Huizhou Expressway Co. Ltd. a holding subsidiary. In 2021 the Company's R&D personnel were mainly the
R&D personnel of the original wholly-owned subsidiary Guangdong Expressway Technology Investment Co.Ltd.The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √Not applicable
Reasons for the drastic change of capitalization rate of R&D investment and its rationality explanation
□ Applicable √Not applicable
5.Cash Flow
In RMB
Items 2022 2021 Increase/Decrease(%)
Subtotal of cash inflow received
from operation activities 4397687883.80 5574328005.11 -21.11%
Subtotal of cash outflow received
from operation activities 1645661325.42 1904583283.95 -13.59%
Net cash flow arising from
operating activities 2752026558.38 3669744721.16 -25.01%
Subtotal of cash inflow received
from investing activities 198020328.77 224528598.74 -11.81%
Subtotal of cash outflow for
investment activities 1196520014.01 648313936.74 84.56%
Net cash flow arising from
investment activities -998499685.24 -423785338.00 -135.61%
Subtotal cash inflow received
from financing activities 2877350200.00 2265075195.50 27.03%
Subtotal cash outflow for
financing activities 3302360155.98 5401656857.26 -38.86%
182022 Annual Report
Net cash flow arising from
financing activities -425009955.98 -3136581661.76 86.45%
Net increase in cash and cash
equivalents 1329505040.78 109006386.66 1119.66%
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
（1）The subtotal of cash outflow from investment activities increased by 84.56% year on year mainly
due to the reconstruction and expansion of Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway and the
increase in payment for project progress; Yuegao Capital invested in garage electric piles Yuetong Qiyuanxin
and Zhongchu Zhiyun to form cash outflows.
（2）The net cash flow from investment activities decreased by 135.61% year on year mainly due to the
increase of cash outflow from investment activities.
（3）The subtotal of cash outflow from financing activities decreased by 38.86% compared with the same
period of last year which was mainly due to the comprehensive influence of the decrease in cash paid for debt
repayment the increase in dividend distribution and interest payment and the previous payment of 21% equity
purchase of Guangdong Expressway Co. Ltd. Guanghui Company.
（4）The net cash flow from financing activities increased by 86.45% year on year mainly due to the
decrease of cash outflow from financing activities.
（5）The net increase in cash and cash equivalents increased by 1119.66% year on year which was the
comprehensive influence of the changes in net cash flow from operating activities investment activities and
financing activities.Reasons of major difference between the cash flow of operation activity in report period and net profit of
the Company
√Applicable □ Not applicable
In RMB
Supplementary information The amount of this period
I. Adjusting net profit to cash flow from operating activities
Net profit 1794588250.64
Add：Credit loss provision 98397398.38
Impairment loss provision of assets
Depreciation of fixed assets oil and gas assets and consumable biological assets 1018003178.73
Depreciation of the use right assets 9771123.65
Amortization of intangible assets 24232065.30
Amortization of Long-term deferred expenses 350625.00
Loss on disposal of fixed assets intangible assets and other long-term deferred assets -478663.58
Fixed assets scrap loss 416274.34
Loss on fair value changes -10400000.00
Financial cost 237456103.95
Loss on investment -254956789.70
Decrease of deferred income tax assets 97064342.25
Increased of deferred income tax liabilities -3593013.71
Decrease of inventories
Decease of operating receivables -102793804.75
Increased of operating Payable -156030532.12
Other
Net cash flows arising from operating activities 2752026558.38
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
192022 Annual Report
3．Movement of cash and cash equivalents：
Ending balance of cash 4284688231.33
Less: Beginning balance of cash equivalents 2955183190.55
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent 1329505040.78
V. Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Amount Proportion intotal profit Explanation of cause Sustainable (yes or no)
Investment Operating accumulation of shareholding
Except for the disposal
proceeds obtained from the
Income 254956789.70 10.89% companies and disposal of subsidiaries inthis period disposal of subsidiaries othersare all sustainable
Loss on fair
value changes 10400000.00 0.44% Changes in fair value of equity investment No
Asset
impairment 0.00 0.00%
Non-operating 10048941.28 0.43% Mainly insurance claims and road propertyincome claims No
Non-operating
expenses 12263294.52 0.52% Mainly road property repair expenditure
Credit Mainly because Guangfo Company makes
impairment loss -98397398.38 -4.20% full provision for impairment of Nomanagement and maintenance expenses
VI. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2022 End of 2021
Proportion Notes to theProportion Proportion
Amount in the total Amount in the total increase/decrease
significant
change
assets(%) assets(%)
Monetary fund 4290581490.78 21.17% 2956404390.55 15.66% 5.51%
Accounts receivable 108368797.56 0.53% 159053399.87 0.84% -0.31%
Contract assets 5286462.45 0.03% -0.03%
Inventories 640079.66 0.00% 0.00%
Investment real estate 2668144.93 0.01% 2889263.41 0.02% -0.01%
Long-term equity
investment 2923368667.84 14.42% 2627130681.24 13.92% 0.50%
Fixed assets 10098252638.07 49.83% 10639272192.02 56.36% -6.53%
Construction in process 753565502.12 3.72% 351130455.06 1.86% 1.86%
Use right assets 4077555.43 0.02% 14100325.01 0.07% -0.05%
Shore-term loans 430387597.20 2.12% 2.12%
Contract liabilities 22000.00 0.00% 0.00%
Long-term borrowing 5566595350.00 27.47% 4572621200.00 24.22% 3.25%
Lease liabilities 150984.47 0.00% 2773459.76 0.01% -0.01%
Overseas assets account for a relatively high proportion.□ Applicable √ Not applicable
202022 Annual Report
2.Asset and Liabilities Measured by Fair Value
√Applicable □ Not applicable
In RMB
Gain/Loss on fair Cumulative fair Impairment Purchased amount Sold amount
Items Opening amount value change in the value change provisions in the in the reporting in the Other
reporting period recorded into equity reporting period period reporting changes
Closing amount
period
Financial assets
1. Trading financial assets
(excluding derivative 10400000.00 91000000.00 101400000.00
financial assets
4.Other equity instrument
investment 1577175826.05 241394552.45 1557303730.98
Subtotal of financial assets 1577175826.05 10400000.00 241394552.45 0.00 91000000.00 0.00 0.00 1658703730.98
Total of the above 1577175826.05 10400000.00 241394552.45 0.00 91000000.00 0.00 0.00 1658703730.98
Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other change
Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting period?
□ Yes √No
3. Assets right restriction till end of reporting period
The balance of restricted bank deposits at the end of the period was RMB 1221200.00 which was the land reclamation fund deposited into the fund custody account
for the reconstruction and expansion project of sanbao to shuikou section of Fokai Expressway.
212022 Annual Report
VII. Investment situation
1. General
√ Applicable □ Not applicable
Current Investment Amount(Yuan) Same period of last year (Yuan) Change rate
857896694.33134650000.00537.13%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□Applicable □Not applicable
In RMB
Progress Gain orLess or WhetherName of the
Company Main Investm Investment
Share Capital Investmen Product up to the to Date of Disclosure
Invested Business ent Way Amount
Proporti
on % Source
Partner t Horizon Type Balance Anticipate Involve DisclosSheet d Income CurrentInvestme in ure
Index
Date nt Lawsuit
Xinyue On the Announceme
(Guangzhou) basis of nt of
Guangdong Investment the term Resolutionsth
Jiangzhong Expressw Increase 131250000. Self Co. Ltd. of Limited15.00% Complete July
of the 20
Expressway ay capital 00 funds Guangdong operation Compan d No 312021 (Provisional)
Co. Ltd. Highway approved y Meeting of
Construction by the the Ninth
Co. Ltd. governme Board ofnt Directors
Total -- -- 131250000.00 -- -- -- -- -- -- 0.00 0.00 -- -- --
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□Applicable □Not applicable
In RMB
Industry Investment Accrued Actual Accrued Reasons for
Project Investment Fixed Investmentinvestments involved in amount in this Amount up to Capital Project Anticipated
Realized not
name method investment reporting Source schedule income Income Reaching
Disclosure Disclosure
or not date Indexprojects period the End of up to the the PlannedReporting End of Schedule
222022 Annual Report
Period Reporting and
Period Anticipated
Income
Nansha-
Zhuhai Announcement
Section of of Resolution
Guangzhou- Self of the Second
Macao Self-built Yes Expressway 536646694.33 553543942.17 and 3.97% No October
Expressway Loan 222022
(Provisional)
Meeting the
Was rebuilt Tenth Board of
and Directors
Expanded
Total -- -- -- 536646694.33 553543942.17 -- -- 0.00 0.00 -- -- --
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
Book value Change PurchasMode of s in fair Cumulative e Sale Book value
Security Securit Stock Initial accounting balance at theAbbreviatio investment beginning of value fair value amount
amoun Gain/loss of balance at the Source
category y code measureme of the changes in in the t in the the reporting end of the
Accountin
g items s ofn: cost nt the reporting this period reporting fundsperiod this equity thisperiod period period period
Domesti Other
c and 601818 Everbright 517560876.8 FVM 781046414.0 0.00 204671801.2 0.00 0.00 47286243.7 722232678.0
equity
foreign Bank 0 8 8 4 8 instrument Self
stocks investment
Total 517560876.80 --
781046414.00.00204671801.20.000.0047286243.7722232678.08848----
Disclosure Date of Announcement
on Securities Investment Approved July 222009
by the Board of Directors
Disclosure Date of Announcement
on Securities Investment Approved
by the Shareholders Meeting(If August 72009
any)
232022 Annual Report
2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
242022 Annual Report
IX. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Name Companytype Leading products and services
Registered
capital Total assets Net assets
Operating
Income Operating profit Net Profit
Jingzhu
Expressway Subsidiary The operation and management of RMB 580Guangzhu Section Guangzhu Expressway million 3633958834.51 1015197263.51 935890869.56 488066941.43 357454547.35
Co. Ltd.Investment in and construction of
Guanghui Expressway Co. Ltd. and
Guangdong supporting facilities the toll collection
Guanghui Sharing and maintenance management of
Expressway Co. company Guanghui Expressway The Guanghui
RMB 2.352
million 4443518724.27 4030343799.24 1852612486.85 1211556201.62 902052548.93
Ltd. Expressway's supporting gas stationsalvation vehicle maintenance vehicle
transport catering warehousing
investment and development
252022 Annual Report
Subsidiaries obtained or disposed in the reporting period
□Applicable □Not applicable
Way of acquiring and disposing of
Company name subsidiary corporations within the Impact on the whole producing operation and
reporting period performance
Guangdong Expressway This transaction does not have a significant impact
Technology Investment Co. Sales on the overall production and operation of the
Ltd. company and increases the company's current netprofit by 24.89 million yuan.Particulars about the Mutual holding companies
1. According to the informal letter No. 24-[2022] Yue Transportation Operation-"Notice of the Department
of Transportation of Guangdong Province on Issues Concerning the Expiration of Toll Collection of Guangfo
Expressway" issued by Guangdong Provincial Department of Transportation Guangfo Expressway shall stop
toll collection from 0:00 on March 3 2022. Retain the existing toll facilities and operate as usual in a zero-rate
manner exempt vehicle tolls for all vehicles passing this road section and collect vehicle tolls on behalf for
other road sections. After the toll collection is stopped Guangfo Expressway Co. Ltd shall continue to be
responsible for the management and maintenance of Guangfo Expressway.X. Structured subject situation controlled by the company
□ Applicable √ Not applicable
XI.Prospect for future development of the Company
The year of 2023 is the first year of fully implementing the spirit of the 20th Party Congress the year of
connecting link in the Fourteenth Five-Year Plan and the crucial year for the Company's high-quality
development in which the Company will thoroughly study and implement the spirit of the 20th Party Congress
determine the goal of the Fourteenth Five-Year Plan make scientific plans and make overall plans and show
new achievements in business management investment and merger and high-quality development to ensure a
good start in 2023. The overall goal in 2023 is to achieve an operating income of RMB 4.683 billion and control
the operating cost within RMB 1.811 billion.
1.Increase the reserve of high-quality highway projects actively plan the investment and acquisition of
high-quality highway projects inside and outside the Communications Group and strive to increase the holding
of high-quality highway projects.
2. Seize the historical opportunity of expressway reconstruction and expansion projects and actively
participate in the investment opportunities of the holding company's reconstruction and expansion projects.Actively carry out the preliminary research work of the reconstruction and expansion project of Guangzhou-
Zhaoqing Expressway and the reconstruction and expansion project of Guangzhou-Huizhou Expressway;
Continue to follow up the construction progress of Jingzhu Expressway Guangzhu Section Jiangmen-
Zhongshan Expressway Huizhou-Shenzhen Expressway reconstruction and expansion projects and other
continuation projects and manage the fund planning to ensure the fund demand for project construction.
3. Promote the implementation of strategic emerging industry projects. Relying on the platform of Yuegao
Capital deeply explore the investment opportunities of high-quality enterprises in scientific and technological
innovation and R&D in the seven sectors of the three main businesses of the Communications Group and focus
on planning the extended layout of the industrial chain expanding collaborative business promoting the project
implementation and cultivating the development momentum.XII. Structured subject situation controlled by the company
□ Applicable √ Not applicable
262022 Annual Report
Way
Recepti Place of of Types of
on time reception recepti visitors Visitors received
Main contents discussed
and information provided Basic index
on
Industrial securities
telephone research
meeting：Wang Chunhuan
Industrial securities; Wu
Xiongwei Capital Dynamics
Asset Management (HK) Pte
Ltd；Shan Dan HMOUNT 1. The main
Asset Management (HK) content of
Limited；Bin Yan Zhongtai research:1. the
Secutities；Zhang Shuoyuan daily operation; 2.Zhongtai Securities Shen The company‘s operating si； the company's
Yuchen Bank of China tuation in the first quarter of 2022 the main work com financial data
April Meeting Investment Management； pleted the progress of parti analysis;3.
27202 Room of Bythe Phone Organization
Xia Heyang Engine Fund；
Li Yanguang Huatai Self cipating in investment reco
development
2 strategy; 4.Company support；Lin Xiaying Huatai nstruction and expansion pr
Securities Yao Shuang ojects and the company‘s d
analysis on the；
BNB Wealth Management evelopment plan and work
industry.；
Pu Xiaoting Pinan Assets priorities.
2.Primary data
investigation:
Management；Tian Public information
Zhaofeng Topsperity company regularly
Securities；Zang Hailiang reports
Yide Wwalth ；Chen
Weichong Genghis Khan
Fund；Wei Songhui Baorun
Group；Wang Yicheng
Nomura Oriental asset
management
1. The main
Huatai Securities telephone content of
research meeting Huatai research:1. the：
Securuties Lin Xiaying daily operation; 2.；
BNB Wealth Management The company’s operati the company's；
Meeting Yao Shuang；Chang Jiang
ng conditions in the firs financial data
August Room of By Securities Lu Sijia Guotai
t half of 2022 the progr analysis;3.；
29202 the Phone Organization Junan Yue Xin Yin Jiaqi;
ess of participating in inves development
2 Company Guosen Securities Zeng
tment reconstruction and e strategy; 4.Fanji Eastmoney Securities xpansion projects and the c analysis on the；
Jiang Nan；Everbright ompany‘s development pla industry.Securities Cheng Xinning n and work priorities. 2.Primary data
Huatai Securities telephone investigation:
research meeting Public information： company regularly
reports
272022 Annual Report
IV. Corporate Governance
I. General situation
The Company strictly followed the requirement of laws and regulations in
Law>< Code of Corporate Governance for Listed Companies in China>
on improving corporate governance structures improving normative operation level. Company had stipulated
rules such as
committee in board of directors working guide of general manager etc. and internal control system basically
covering all operating management such as company financial management investment management
information disclosure related transaction external guarantee fund raising compliance risk management etc.All rules are well implemented.In the report period strictly following the relevant provisions of “Company Law”and “Regulations” the
shareholder’s meeting of our bank effectively performed the functions. The board of directors is to be responsible
for the shareholder’s meeting to take the ultimate responsibility for the bank’s operation and management and to
convene a meeting as well as performing the function and power according to legal procedure. In line with the
attitude which is responsible for all shareholders and keeping in close contact and communication with the board
of directors and the management the board of supervisors carries out the assessment work on duty exercising for
the board of directors and the board of supervisors effectively performing functions and obligations of
supervision.Does there exist any difference in compliance with the corporate governance the PRC Company Law and the
relevant provisions of CSRC
□ Yes √No
There exist no difference in compliance with the corporate governance the PRC Company Law and the
relevant provisions of CSRC.II. Independence and Completeness in business personnel assets organization and finance
1. Independent business
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai ExpresswayJingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangzhou
Guanghui Expressway Co. Ltd.. Guangdong Jiangzhong Expressway Co.Ltd. Zhaoqing Yuezhao Expressway
Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Technology
Petty Loan Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd Hunan Lianzhi
Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd. CMST Nanjing Intelligent
Logistics Technology Co. Ltd.and Shenzhen Garage Electric Pile Technology Co. Ltd.The Company has outstanding main operation independent and complete business and the ability of
independent operation. All business decisions of the Company were made independently being completely
separated from the shareholder with actual control. Related transactions were carried out in light of the principle
of fair transaction which did not harm the interests of the Company and other shareholders of the Company.The content of related transactions was fully timely and accurately disclosed which did not have negative
influence on the Company.
2. Complete assets
The relationship of the Company's property right is clear. The assets injected by shareholders in the
Company are independent and complete and have clear property right. All capital was paid up and relevant
formalities of property right change were settled.
282022 Annual Report
3. Independent personnel
As for personnel relationship the general manager deputy general managers the secretary to the board of
directors and financial controller of the Company were full-time employees and received salary from the
Company who did not concurrently hold positions at the parent company.All directors and supervisors of the Company were elected through legal procedure. The general manager
deputy general managers chief accountant chief economic engineer and chief engineer were directly appointed
by the board of directors. Other managerial personnel of all levels were directly appointed by the general
manager. The Company owns independent power of personnel appointment and removal.
4. Independent finance
The Company including subsidiaries established independent accounting department ， independentaccounting system and regulations on financial management.The Company independently opened bank account and did not deposit funds in the accounts of the finance
company or settlement center of the majority shareholder. The Company independently paid tax. The
Company's financial decisions were independently made. The majority shareholder did not interfere with the
use of funds by listed companies.
5. Independent organization
The board of directors the supervisory committee and other internal organs of the Company operated
independently. Its organs are complete and independent.III. Horizontal Competitions
□ Applicable √ Not applicable
292022 Annual Report
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Sessions Type of
Investor
participation Meeting Disclosuremeeting Date date Disclosure indexratio
The meeting examined and adopted the Proposal Concerning Final Accounting Report for 2021
The meeting examined and adopted the Proposal Concerning Preplan for Profit Distribution for
2021The meeting examined and adopted the Proposal Concerning Overall budget report of the
Annual Company for 2022The meeting examined and adopted the Work Report of the Board of Directors for
2021 Shareholders’ Shareholders’ 66.50% May May 2021The meeting examined and adopted the Work Report of the supervisory Committee for 2021Thegeneral meeting General 172022 182022 meeting examined and adopted Annual Report for 2021 and its summary The meeting examined and
Meeting adopted the Proposal for Hiring the 2022 Annual Financial Report Audit Agency The meeting
examined and adopted the Proposal for Hiring the 2022 Internal Control Audit InstitutionThe meeting
examined and adopted the Proposal regarding the election of Mr. Kuang Yu as director of the ninth
board of directors of the Company.The First provisional Provisionalshareholders’ August August The meeting examined and adopted the Proposal on electing Mr. Miao Deshan as a director of theshareholders’ General General 66.27% 192022 202022 ninth Meeting of the board of directors of the Company The meeting examined and adopted themeeting of 2022 meeting Proposal on electing Mr. He Sen as a Supervisor of the ninth supervisory committee of the Company
The Second provisional Provisional The meeting examined and adopted of the Proposal on the General Election of the Company's Board
shareholders’ General shareholders’ 66.18% September September of Directors The meeting examined and adopted of the Proposal on the General Election of the
meeting of 2022 General 202022 212022 Company's Supervisory Committee The meeting examined and adopted of the Proposal on themeeting Remuneration of Directors of the Tenth Board of Directors of the Company.The meeting examined and adopted the Proposal on Amending Part of the Articles of Association of
Provisional the Company The meeting examined and adopted the Proposal on Amending of Independent directorThe Third provisional shareholders’ November November system of Guangdong Provincial Expressway Development Co. Ltd.The meeting examined andshareholders’ General General 66.30% 72022 82022 adopted the Proposal on Increasing Capital to Beijing-Zhuhai Expressway Guangzhu Section Co. Ltd.meeting of 2022 meeting to Invest in the Reconstruction and Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao
Expressway.The Fourth provisional Provisional
shareholders’ General shareholders’ 66.35% December December The Meeting examined and adopted the Proposal on the Amendment of the Rules of Procedure of the
meeting of 2022 General 292022 302022 Board of Directors of Guangdong Provincial Expressway Development Co. Ltd.meeting
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
302022 Annual Report
V. Information about Directors Supervisors and Senior Executives
1.Basic situation
The
number of Number of Number of Reasons
Office Starting Expiry Shares held shares held
shares Other shares held for
Name Positions status Sex Age date of date of at the year- in the
reduced in changes(sh at the end increase
tenure tenure begin(share) current the current ares) of the or
period(shar period(shar period(shar decrease
es) es) es) of shares
Miao Deshan Board Chairman In August Septemberoffice Male 51 192022 202025
Wang Chunhua Director General InManager office Male 58
April September
162013202025135100135100
Lu Ming Director Chief accountant In Male 44 December Septemberoffice 252020 202025
Zuo Jiang Director Deputy General In Female 50 October SeptemberManager office 192015 202025
Cheng Rui Director Inoffice Male 48
Septembe September
r 202022 202025
Zeng Zhijun Director In Male 52 December Septemberoffice 42017 202025
You Xiaocong Director In Male 55 Novembe Septemberoffice r 22020 202025
Yao Xuechang Director In Male 51 Septembe Septemberoffice r 202022 202025
Wu Hao Director In Female 50 Novembe Septemberoffice r 22020 202025
Kuang Yu Director In May Septemberoffice Male 37 172022 202025
Zhang Hua Independent director In Male 57 December Septemberoffice 42017 202025
Liu Zhong Hua Independent director Inoffice Male 57
December September
42017202025
Zeng Xiaoqing Independent director In Female 53 May Septemberoffice 202019 202025
You Dewei Independent director Inoffice Male 54
Septembe September
r 202022 202025
Yu Mingyuan Independent director In Male 60 Septembe Septemberoffice r 202022 202025
He Sen Chairman of the In August SeptemberSupervisory Committee office Male 49 192022 202025
312022 Annual Report
The
number of Number of Number of Reasons
Starting Expiry Shares held shares held shares shares held for
Name Positions Office Sex Age date of date of at the year- in the reduced in
Other
changes(sh at the end increasestatus tenure tenure begin(share) current the current ares) of the or
period(shar period(shar period(shar decrease
es) es) es) of shares
Wang Supervisor In Female 51 May SeptemberXiaobing office 172022 202025
Ke Lin Supervisor In Female 53 Septembe Septemberoffice r 152017 202025
Deng Yunfeng Supervisor In December Septemberoffice Male 47 232021 202025
Zhou Dong Supervisor Inoffice Female 52
Septembe September
r 92022 202025
Luo Baoguo Deputy General Manager In Male 49 December Septemberoffice 252020 202025
Yang Hanming Secretary to the Board In Male 53 August Septemberoffice 282017 202025
Zhou Yisan legal counsel In Male 42 Septembe Septemberoffice r 202022 202025
Zheng Renfa Board Chairman Dimission Male 53
January April
42017242022
Chen Min Director Dimis Male 59 July Septembersion 192017 202022
Ren Hua Director Dimis Male 47 June Septembersion 222021 202022
Huang Hai Director Dimis Male 47 July Februarysion 212016 22022
Gu Naikang Independent director Dimission Male 57
July September
212016202022
Bao Fangzhou Independent director Dimis Male 44 July Septembersion 212016 202022
Jiang Chairman of the Dimis May July
Changwen Supervisory Committee sion Male 55 202022 252022
Zhou Yisan Supervisor Dimis Male 42 Septembe Septembersion r 92019 92022
Cheng Rui Deputy General Manager Dimission Male 48
August June
282017172022
He Bing legal counsel Dimission Female 55
July July
232012292022
Total -- -- -- -- -- -- 135100 0 0 0 135100 --
322022 Annual Report
During the reporting period whether there is dismissal of directors and supervisors and decruitment of senior
managers
√ Yes □No
1. Mr. Huang Hai the Director resigned from the Board of Directors and the Remuneration and
Assessment Committee of the Company on February 24 2022 due to work adjustment any position in the
Company after he resignation.
2. Mr. Zheng Renfa Chairman of the Board of Directors resigned as Chairman and Director of the
Company on April 24 2022 due to job transfer and also resigned as Chairman of the Strategy Committee and
Risk Management Committee of the Board of Directors. After his resignation Mr. Zheng Renfa will not hold
other positions in the company.
3. Mr. Cheng Rui the Deputy General Manager resigned from the Board of Directors of the Company on
June 17 2022 due to job transfer.
4. Mr. Jiang Changwen the supervisory board chairman resigned as Chairman and Supervisor of the Board
of Supervisors of the Company on July 25 2022 due to job transfer any position in the Company after he
resignation..
5. Ms. He Bing the General Counsel has reached the retirement age and resigned as the General Counsel
from the Board of Directors of the Company on July 29 2022. Ms. He Bing will not hold any position in the
Company after her resignation.
1.Changes of directors supervisors and senior executives
√ Applicable □ Not applicable
Name Positions Types Date Reason
Zheng Renfa Board Chairman Dimission April 242022 Job change
Chen Min Director Left for term expiration September 202022 Left for term expiration
Ren Hua Director Left for term expiration September 202022 Left for term expiration
Huang Hai Director Dimission February 242022 Job change
Gu Naikang Independent director Left for term expiration September 202022 Left for term expiration
Bao Fangzhou Independent director Left for term expiration September 202022 Left for term expiration
Chairman of the
Jiang Changwen Supervisory Dimission July 252022 Job change
Committee
Zhou Yisan Supervisor Left for term expiration September 92022 Left for term expiration
Deputy General
Cheng Rui Dimission June 172022 Job change
Manager
He Bing legal counsel Dimission July 292022 Retirement
2.Posts holding
Professional backgrounds major work experience and current duties in the Company of the incumbent directors
supervisors and senior management:
Mr. Miao Deshan，He served as Chairman of the Board Secretary of the Party Committee of the Companywith bachelor degree. Bachelor of Engineering degree senior engineer. From June 2011 to July 2022 he served
successively as Deputy General Manager Chief Engineer Deputy Secretary of the Party Committee Director
and General Manager of Guangdong Communications Industrial Investment Co. Ltd. has been the Chairman of
the Company since August 19 2022. He is also the Director of SPIC Yuetong Qiyuanxin Power Technology
Co. Ltd. the Company's shareholding company and the Legal Representative and Executive Director of
Yuegao Capital Holdings (Guangzhou) Co. Ltd.Mr. Wang Chunhua He served as Director and General Manager of the Company deputy secretary of the Party
332022 Annual Report
Committee of the Company. Master Degree senior engineer and senior economic engineer Since September
2006 he served as Deputy General Manager of the Company.From March 2013 to October 2015 He served as
director and Deputy General Manager of the Company Since October 2015 He served as Director and General
director of the Company and hold a concurrent post of vice chairman of Shenzhen Huiyan Expressway Co. Ltd.and Chairman and Legal representative of Guangfo Expressway .Mr. Lu Ming from March 2009 to December 2020 served as the Manager Deputy Business Director and
Business Director of the Financial Management Department of Guangdong Communications Group Co. Ltd. and
from December 2018 to December 2019 he served as the first secretary of the Party Branch of Yinghuai
Management Office of Guangdong Nanyue Communications Longhuai Expressway Management Center. Since
December 25 2020 he has served as the Chief Accountant of the Company and since February 3 2021 he has
served as a Director of the Company. He also serves as the Vice Chairman of Ganzhou Nankang–Dayu
Expressway Co. Ltd. the Company's shareholding company the Director of Guangdong Yuepu Microfinance
Co. Ltd. the Chairman of Beijing-Zhuhai Expressway Guangzhou-Zhuhai Section Co. Ltd. and Guangdong
Guangzhou-Huizhou Expressway Co. Ltd.Ms. Zuo Jiang Deputy General Manager of the Company member of the Party Committee and employee
director of the company. Master of Economics Senior Economist Qualified as Legal Adviser of the Enterprise
Secretary of the Board of Directors. He has been working in the Company since 1994. He has been the Minister of
Securities Affairs of the Company since 1999. He has been the Secretary of the Board of Directors and Director of
Securities Affairs Department since March 2006. From October 2015 to July 2016 he was the Deputy General
Manager and Secretary of the Board of Directors And Minister of Securities Affairs. Since October 2015 he has
been the Deputy General Manager of the Company and hold a concurrent post of Director of Yueke Technology
Petty Loan Co. Ltd. director of Guoyuan Securities Co. Ltd. and General Manager Party branch secretary of
Yuegao Capital lnvestment (Guangzhou)Co. Lt6d.Mr. Cheng Rui Director of the Company holds a master's degree in business administration an economist
with the Corporate Legal Adviser and Lawyer qualification.From August 2017 to May 2022 he served as
Deputy General Manager of Guangdong Expressway Development Co. Ltd. during which from May 2019 to
August 2021 he was appointed as the First Secretary of the Party Organization in Shanhu Village Jinhe Town
Jiexi County Jieyang City.Since May 2022 till now he has served as the Director of Legal Affairs Department
of Guangdong Communications Group Co. Ltd. He has been the director of the Company since September 20
2022.
Mr. Zeng Zhijun economist is a director of the Company with master degree. Since June 2010 he has
served as the deputy chief economist of Guangdong Provincial Expressway Co. Ltd. From January 2015 to
September 2015 he served as Minister of Investment Planning Department of Guangdong Provincial
Expressway Co. Ltd; since September 2015 he has served as Minister of Legal Affairs Department of
Guangdong Provincial Expressway Co. Ltd. ， Since September 2020 He serves as Minister of personnelresource department，Since December 4 2017 he serves as Director of the Company.Mr.You Xiaocong senior accountantis the director of the Company with bachelor degree. From May 2015
to December 2021 he served as the director and chief accountant of Guangdong Provincial Highway Construction
Co. Ltd. and since December 2021 he has served as the director chief accountant and member of the party
committee of Guangdong Provincial Highway Construction Co. Ltd. He has served as director of the Company
since November 2 2020.Mr. Yao Xuechang Director of the Company Bachelor Degree MBA Senior Engineer of road and bridge
served as the Director and Deputy Secretary of the Party Branch of the Reconstruction and Expansion Project
342022 Annual Report
Management Office of the Southern Section of Foshan-Kaiping Expressway from October 2015 to February
2020. From February 2020 to October 2021 he successively served as the Director and Deputy Secretary of the
Party Branch of Zhongshan-Jiangmen Expressway Reconstruction and Expansion Management Office Deputy
Secretary and Director of the Party Branch of the Reconstruction and Expansion Project Management Office of
the Southern Section of Foshan-Kaiping Expressway director and deputy secretary of the Party branch of the
Guangzhou-Zhuhai Expressway Reconstruction and Expansion Management Office. Since October 2021 he
has served as the Deputy Secretary and Director of the Party Branch of the Reconstruction and Expansion
Management Office of the Guangzhou-Zhuhai section of Beijing-Zhuhai Expressway and the Director of the
Reconstruction and Expansion Project Management Office of the Southern Section of Foshan-Kaiping
Expressway.He has been the Director of the Company since September 20 2022.Ms.Wu HaoShe is the director of the Companywith bachelor degree. From February 2012 to May 2020 She
successively served as deputy manager of the finance department deputy manager of the investment business
department and manager of the investment business department of Shandong Expressway Investment
Development Co. Ltd. She has served as the deputy general manager and member of party committee of
Shandong Expressway Investment Development Co. Ltdsince May 2020. From November 2 2020 he has served
as director of the Company.Mr Kuang Yu Director of the Company holds a master's degree in economics.He started working in 2011
and is currently the securities affairs representative of Poly Development Holding Group Co. Ltd. and the
Department Manager of the Capital Operation Department of the Board Office.He has been the Director of the
Company since May 17 2022.Mr. Liu Zhonghua professor of accounting is an independent director of the Company with master degree.In September 2005 he was transferred to the School of Management of Guangdong University of Foreign Studies
to teach. He is currently a professor at the School of Accounting of Guangdong University of Foreign Studies he
is a master tutor concurrently serves as member of Accounting Society of China executive member of China
Association of Foreign Trade and Economic Accounting vice chairman of Guangdong Province Management
Accounting Association executive member of Guangdong Provincial Accounting Association and member of
Guangdong Audit Society. Since December 4 2017 he is an independent director of the Company.Mr. Zhang Hua economist is an independent director of the Company with Master Degree. since October
2016 he has served as general manager of Shanghai Er Luo Investment Management Service Center (General
Partnership). From November 2010 to January 2017 he served as an independent director of Guangzhou Yu Yin
Technology Co. Ltd. From December 2011 to September 2017 he served as an independent director of
Guangdong Electric Power Development Co. Ltd. In September 2017 he was an independent director of Zhuhai
Taichuan Cloud Community Technology Co. Ltd. Since December 4 2017 he is an independent director of the
Company.Ms. Zeng Xiaoqing an independent director of the Company with bachelor's master's and doctor's degrees
from Tongji University. Since 1993 she conducted training and study at Tsinghua University and German
Darmstadt University of Technology. From May 20 2019 she served as the independent director of the Company.Mr. You Dewei the independent director of the Company with a master's degree in law served as the
Senior Partner and Lawyer of Guangdong Zongheng Tianzheng Law Firm from June 1997 to January 2019 and
as the Supervisor Senior Partner and Lawyer of Guangdong ETR Law Firm since January 2019. Meanwhile he
is also a part-time External Director of the supervision enterprise of Guangdong State-owned Assets
Supervision and Administration Commission part-time External Director of Guangdong Port and Shipping
Group Independent Director of Guangzhou Academy of Building Research Co. Ltd. Independent Director of
352022 Annual Report
Guangsheng Nonferrous Metals Co. Ltd. and one of the first batch of 35 mediators in the Mediation Center of
Guangdong Lawyers Association Deputy Director of the 11th State-owned Assets Law Committee of
Guangdong Lawyers Association Deputy Director of the 12th Compliance and Risk Control Law Committee of
Guangdong Lawyers Association Executive Director of China Health Law Society Executive Director of
Guangdong Health Law Society Director of Guangdong Law Society's Corporate Compliance Research
Society Director of Guangdong Law Society's Medicine and Food Law Research Society Deputy Director of
Guangzhou Lawyers Association's Medicine and Health Business Legal Committee an Arbitrator of Shenzhen
Court of International Arbitration Arbitrator of Qingyuan Arbitration Committee Member of Guangdong
Province's Eighth Five-Year Plan Law Popularization Lecturer Group and Member of Guangzhou Municipal
Bureau of Justice's "Warm Enterprise Action" 100-expert Lawyer Legal Service Group. He has been an
independent director of the Company since September 20 2022.Mr. Yu Mingyuan an Independent Director of the Company Bachelor of Engineering second-class
researcher and Expert enjoying special government allowance from the State Council once served as the
Director of the Highway and Comprehensive Transportation Development Research Center of the Research
Institute of Highway Ministry of Transport. Since July 2021 he has also served as an Independent Director of
Jiangsu Shanghai-Nanjing Expressway Co. Ltd. since December 2022 as an Independent Director of Hubei
Chutian Intelligent Transportation Co. Ltd. and since September 20 2022 as an Independent Director of the
Company.Mr. He Sen Chairman of the Board of Supervisors of the Company Bachelor Degree MBA Senior
Accountant has been appointed Chairman of the Board of Supervisors of Guangdong Communications Group
Co. Ltd. since March 2016. Since August 19 2022 he has served as Chairman of the Board of Supervisors of
the Company.Ms. Wang Xiaobing Supervisor of the Company Bachelor of Arts Senior Economist and Accountant has
been an expatriate supervisor of Guangdong Communications Group Co. Ltd. since August 2008. Since May
17 2022 he has served as a Supervisor of the Board of Supervisors of the Company.
Ms.Ke Lin Supervisor of the Company Deputy Secretary of the Party Committee and
Secretary of the Discipline Inspection Commission of the Company. Bachelor degree Bachelor of
Science assistant researcher.From August 2017 to December 2020 she has served as Chairman
of the labor union of the companyFrom August to New She has served as party committee
member discipline inspection commission secretary.Since September 15 2017 She served as supervisor
of Board of supervisor of the Company.Mr. Deng Yunfeng supervisor of the Company bachelor degree MBA senior engineer. He served as Party
Secretary of Guangzhou-Foshan Expressway Co. Ltd. from February 2014 to July 2018; Minister of Party and
Mass Work Department of the Company from July 2018 to the present and also vice chairman of the trade
union of the Company and chairman of the trade union of its headquarters from March 2021 to the present. He
has served as the employee supervisor of the ninth board of supervisors of the Company since December 23
2021.
Ms. Zhou Dong Supervisor of the Company Bachelor of Economics and Senior Accountant. From April
2003 to January 2018 she served as Deputy Director of the Financial Management Department of the Company.
Since January 2018 she has served as Deputy Secretary of the Discipline Inspection Committee of the
Company and Director of the Discipline Inspection and Audit Department of the Company. Since September
2022 She has served as Employee Supervisor of the Board of Supervisors of the Company.She is also the
Chairman of the Board of Supervisors of Ganzhou Ganxian-Nankang Expressway Co. Ltd. a shareholding
362022 Annual Report
company of the Company Supervisor of Guangdong Lechang-Guangzhou Expressway Co. Ltd. and Supervisor
of Shenzhen Huizhou-Shenzhen Expressway Co. Ltd.Mr. Luo Baoguo Deputy General Manager of the Company Master of Engineering Senior Engineer. From
August 2017 to December 2020 he served as the General Manager (person in charge) and Deputy Secretary of
the Party Committee of Foshan-Kaiping Branch of Guangdong Expressway Development Co. Ltd. Since
December 25 2020 he has served as the Deputy General Manager of the Company.He is also the Chairman of
Zhaoqing Yuezhao Highway Co. Ltd. a shareholding company of the Company the Vice Chairman of
Guangdong Zhongshan–Jiangmen Expressway Co. Ltd. and the Director of Guangdong Guangzhou-Huizhou
Expressway Co. Ltd.Mr. Zhou Yisan General Counsel of the Company Master of Law corporate lawyer second-class legal
adviser of state-owned enterprises has the qualifications of secretary of the board of directors securities
futures and funds. From April 2016 to October 2017 he served as Deputy Director of Investment Development
Department and Legal Affairs Department of the Company; from October 2017 to now he served as Director of
Legal Affairs of the Company; from September 2019 to September 2022 he served as Employee Supervisor of
the Ninth Board of Supervisors of the Company; and from September 20 2022 he served as General Counsel
of the Company. Meanwhile he also serves as the Director of Beijing-Zhuhai Expressway Guangzhou-Zhuhai
Section Co. Ltd. the holding company of the Company Supervisor of Guangdong Yuepu Microfinance Co.Ltd. and Director of Guangdong Guangzhou-Huizhou Expressway Co. Ltd.Mr. Yang Hanming he has been the Secretary of the Board， bachelor's degree senior economist corporatelegal adviser with the board secretary qualifications. Since August 2017 he has been the Secretary of the Board
of the Company vice Chairman of Ganzhou Gankang Expressway Co. Ltd. Director of Guangdong Jiangzhong
Expressway Co. ltd. and supervisor of Guangdong Yueke Technology Petty Loan Co. Ltd. Since September
2019 he served as Minister of Development Dept of the Company. He also serves as the vice Chairman of
Gangzhou Gankang Expressway Co. Ltd. a joint stock company of the Company.and Director of Jingzhu
Expressway Guangzhu Section Co. Ltd.Office taking in shareholder companies
√Applicable □Not applicable
Names of the Sharing date Expiry Does he /she receive
persons in Names of the shareholders Titles engaged in theshareholders of office
date of remuneration or
office term office allowance from theterm shareholder
Cheng Rui Guangdong Communication Minister of LegalGroup Affairs. May 12022 Yes
Chief accountant Party
You Guangdong Highway committee member and January
Xiaocong Construction Co. Ltd. Secretary of the board of 142015 Yes
directors
Beijing-Zhuhai Expressway
Yao Guangzhou-Zhuhai section Deputy secretary and October
Xuechang reconstruction and expansion director of the Party Yes
management Office branch
12021
Zeng Zhijun Guangdong Provincial Freeway
General Counsel
Co.Ltd. Minister of Human
September Yes
Resources 12015
He Sen Guangdong Communication
Dispatched chairman of
the supervisory MarchGroup Co. Ltd. committee 12016
Yes
Wang 广 Guangdong Communication August
Xiaobing Group Co. Ltd. Supervisor 12008 Yes
372022 Annual Report
Offices taken in other organizations
√Applicable □Not applicable
Does he/she
Name of Expiry receive
the persons Name of other organizations Titles engaged in the Starting date of date of remuneration or
in office other organizations office term office allowance fromterm other
organization
Shanghai Erro Investment Management
Service Centre(General partnership) General Manager October 12016 Yes
Zhuhai Taichuan Community Independent director September Yes
Zhang Hua Technology Co. Ltd . 12017
Guangzhou Yuyin Technology Co.Ltd. Independent director
November
12018 Yes
Guangzhou Rural Commercial Bank Independent director March 182021 Yes
College of Accounting Guangdong Professor Master’s September
University of Foreign Studies supervisor 12005 Yes
Liu Gelinmei Co. Ltd. Independent Director March 202019 Yes
Zhonghua Yuexiu Capital Co. Ltd. Independent Director September12022 Yes
Luxshare Preciaion Industry Co. Ltd. Independent Director June 12021 Yes
Tongji University's School of Professor and doctoral
Zeng Transportation Engineering supervisor June 12007 Yes
Xiaoqing Tongji University's Joint Experimental
Center for Traffic Information Control Director June 302003 No
Guangdong ETR Law Firm Chief Supervisorsenior partner lawyer January 12019 Yes
Guangdong Province SASAC
supervises enterprises External director July 12019 Yes
Guangdong Ganghang Group External director July 12019 Yes
Guangdong Provincial Academy of
Building Research Group Co. Ltd. Independent director August 12022 Yes
Rising Nonferrous Metals Share Co.ltd. Independent director August 12022 Yes
The 11th State-owned Assets Law
Professional Committee of Guangdong Vice director March 12017 No
Lawyers Association
The 12th Compliance Risk Control
Legal Professional Committee of Vice director April 12022 No
Guangdong Lawyers Association
You Dewei China Health Law Society Executive director June 12019 No
Guangdong Health Law Society Executive director December12021 No
Guangdong Provincial Law Society of
Medicine and Food Law Research Director December No
Associatio 12020
Pharmaceutical and Health Business
Legal Professional Committee of Vice director September
Guangzhou Law Association 12020
No
Shenzhen Court of International
Arbitration Arbitrator February 12019 No
Qingyuan Arbitration Commission Arbitrator February 12016 No
Guangzhou Municipal Bureau of
Justice "warm enterprise action" 100 Member September12016 Noexperts lawyers legal service
Research Institute of Highway Ministry Second-level
of Transport researcher October 12022 Yes
Yu China Highway Society Investment
Mingyuan Branch Executive director July 12022 No
China Highway SocietyTransportation
and Logistic Branch Executive director July 12018 No
382022 Annual Report
Does he/she
Name of Expiry receive
the persons Name of other organizations Titles engaged in the Starting date of date of remuneration or
in office other organizations office term office allowance fromterm other
organization
Jiangsu Ninghu Expressway Co. Ltd. Independent director July 12021 Yes
Hubei Chutian Smart Communication
Co. Ltd. Independent director
December
12022 Yes
Wu Hao Shandong Expressway Investment
Member of Party
Development Co. Ltd. committee deputy May 292020 Yesgeneral manager
Securities
Representative and
Kuang Yu Poly Development Group Co. Ltd. Department Managerof Capital Operations Yes
Department of the
Board of Directors
Punishments to the current and leaving board directors supervisors and senior managers during the report
period by securities regulators in the recent three years
□ Applicable √Not applicable
3. Remuneration to directors supervisors and senior executives
Decision-making procedures basis for determination and actual payment of the remuneration to directors
supervisors and senior executives
The remuneration of members of the Tenth board of directors and supervisory committee was examined
and determined at the second provisional shareholders’ general meeting in 2022.Non-independent directors are not entitled to directors' remuneration.
1. Independent directors are entitled to directors' remuneration，Directors who have not held other positions in
the Company and the controlling shareholder of the Company and its related parties are remunerated by the
directors of the Company and the standard is RMB 8000 (tax included) per person per month. In addition the
expenses incurred by the independent directors at the board of directors and the shareholders' general meeting
and the expenses incurred in exercising their functions and powers in accordance with the articles of association
may be reimbursed in the company.Remuneration to directors supervisors and senior executives in the reporting period
In RMB 10000
Total remuneration
Name Positions Sex Age Officestatus received from the
Whether to get paid in the
Company company related party
Miao Deshan Board Chairman Male 51 In Office 25.15 No
Zheng Renfa Board Chairman Male 53 Dimission 38.15 No
Wang
Chunhua Director General Manager Male 58 In Office 82.81 No
Lu Ming Director ChiefAccountant Male 44 In Office 63.32 No
Zuo Jiang Director Deputy GeneralManager Female 50 In Office 64.68 No
Cheng Rui Director Male 48 In Office 0 Yes
Cheng Rui Deputy General Manager Male 48 Dimission 38.58 No
Chen Min Director Male 59 Dimission 0 Yes
Zeng Zhijun Director Male 52 In Office 0 Yes
You Xiaocong Director Male 53 In Office 0 Yes
Yao Xuechang Director Male 51 In Office 0 Yes
392022 Annual Report
Ren Hua Director Male 47 Dimission 0 Yes
Wu Hao Director Female 50 In Office 0 No
Kuang Yu Director Male 37 In Office 0 No
Huang Hai Director Male 47 Dimission 0 No
Zhang Hua Independent director Male 57 In Office 7.8 No
Liu Zhonghua Independent director Male 57 In Office 7.8 No
Zeng Xiaoqing Independent director Female 53 In Office 7.8 No
You Dewei Independent director Male 54 In Office 2.4 No
Yu Mingyuan Independent director Male 60 In Office 2.4 No
Gu Naikang Independent director Male 57 Dimission 5.4 No
Bao Fangzhou Independent director Male 44 Dimission 5.4 No
He Sen Chairman of theSupervisory Committee Male 49 In Office 0 Yes
Jiang Chairman of the
Changwen Supervisory Committee Male 55 Dimission 0 Yes
Wang
Xiaobing Supervisor Female 51 In Office 0 Yes
Ke Lin Supervisor Female 53 In Office 63.76 No
Deng Yunfeng Supervisor Male 47 In Office 55.07 No
Zhou Dong Supervisor Female 52 In Office 55.08 No
Zhou Yisan Supervisor Male 42 Dimission 0 No
Zhou Yisan Chief legal adviser Male 42 In Office 55.88 No
Luo Baoguo Deputy General Manager Male 48 In Office 64.39 No
Yang
Hanming Secretary to the Board Male 53 In Office 57.52 No
Total -- -- -- -- 703.39 --
402022 Annual Report
VI. Performance of directors' duties during the reporting period
1. Information of the board meetings during the reporting period
Session Convening Disclosuredate date Meeting resolution
The 25th (Provisional)
meeting of the ninth Board January January The meeting examined and adopted the Proposal on Increasing Capital
of Directors 112022 122022 to Guangdong Expressway Capital to Invest in the Equity of CMST Nanning Smart Logistics Technology Co. Ltd.The 26th (Provisional) The meeting examined and approved the "Proposal on the "14th Five-
meeting of the ninth Board January January Year" Development Plan of Guangdong Provincial Expressway Development Co.Ltd." and agreed to the "14th Five-
of Directors 262022 272022 Year Development Plan of Guangdong Provincial Expressway Development Co.，Ltd."The meeting examined and adopted of the Proposal on Changes in Accounting Policies，The meeting examined and adopted theProposal on Write-off of Assets Impairment Provision， The meeting examined and adopted the Proposal Concerning FinalAccounting Report for 2021，The meeting examined and adopted the Proposal Concerning Final Accounting Report for 2021，
The meeting examined and adopted the Proposal Concerning Overall budget report of the Company for 2022， The meeting
examined and adopted the Proposal Concerning Overall budget report of the Company for 2022，The meeting examined and
adopted the Proposal Concerning Overall budget report of the Company for 2022，The meeting examined and adopted Annual
The 27th (Provisional) Report for 2021 and its summary，The meeting examined and adopted the Proposal the report on evaluation of the Company'smeeting of the ninth Board March March internal control in 2021，The meeting examined and adopted the Proposal for Hiring the 2022 Annual Financial Report Audit
of Directors 152022 162022 Agency，The meeting examined and adopted the Proposal for Hiring the 2022 Internal Control Audit Institution，The meetingExamined and adopted of the Proposal on Confirming the Continuous Risk Assessment Report of Guangdong CommunicationGroup Finance Co. Ltd，The meeting Examined and adopted of the Proposal on the Report on the Control of Debt Risk of 2021，The meeting Examined and adopted of the Proposal on the Report on the analysis of Debt Risk of 2021， The meeting examined
and adopted the Proposal Concerning the Company Daily Associated Transactions Predicted of 2022，The meeting examined and
adopted the Proposal on Nominated Candidate for Director of the Ninth Board of Directors， The meeting examined and adoptedthe Proposal on the Transfer of 100% Equity of the Wholly-owned Subsidiary Guangdong Expressway Technology Investment Co.Ltd. ，The meeting examined and adopted the Proposal for Holding 2021 Annual Shareholders' General Meeting.The 28th (Provisional)
meeting of the ninth Board March March The meeting examined and adopted the "Proposal on Capital Increase in Yuegao Capital Investment (Guangzhou) Co. Ltd. to Inves
of Directors 182022 192022 t in the Equity of Shenzhen Garage Electric Pile Technology Co. Ltd."
The 29th (Provisional) April April The meeting examined and adopted the "Proposal on Nominating Director to Perform the Duties of Chairman"，The meetingmeeting of the ninth Board examined and adopted the Proposal concerning the First Quarter of 2022of Directors 262022 272022
The 30th (Provisional)
meeting of the ninth Board July July The meeting examined and adopted of the Proposal on Nominating Candidates for Directors of the Ninth Board of Directors，Theof Directors 272022 282022 meeting examined and adopted the Proposal for Holding 2022 First Provisional Shareholders' General Meeting.The meeting examined and adopted the "Proposal on Election of the Chairman of the Ninth Board of Directors"The meeting
examined and adopted the "Proposal on By-election of Members of the Strategy Committee of the Ninth Board of Directors"，TheThe 31st (Provisional) August August meeting examined and adopted the "Proposal on By-election of Members of the Strategy Committee of the Ninth Board ofmeeting of the ninth Board 192022 202022 Directors"，The meeting examined and adopted the "Proposal on By-election of Members of the Remuneration and Appraisalof Directors Committee of the Ninth Board of Directors"，The meeting examined and adopted the "Proposal on Formulating the ManagementSystem for External Donations of Guangdong Provincial Expressway Development Co. Ltd."，The meeting examined and adoptedthe "Proposal on Formulating the Implementation Rules for the Management Evaluation of Guangdong Provincial Expressway
412022 Annual Report
Session Convening Disclosuredate date Meeting resolution
Development Co. Ltd's tenure system and contractual management (trial)"， The meeting examined and adopted Agreed toformulate the "Guangdong Provincial Expressway Development Co. Ltd’s Managers' tenure system and contract management
assessment implementation rules (trial)".The meeting examined and adopted the Proposal for semi-annual report 2022 and its summary， The meeting examined andadopted of the Proposal on Confirming the Continuous Risk Assessment Report of Guangdong Communication Group Finance Co.Ltd.， The meeting examined and adopted of the Proposal on the Contractual Assessment Results of the Company's 2021The 32nd (Provisional) August August Management Membership Tenure System，The meeting examined and adopted of the Proposal on the Company's Managementmeeting of the ninth Board 262022 272022 Members' Letter of Responsibility for Operational Management Targets in 2022， The meeting examined and adopted of theof Directors Proposal on the General Election of the Company's Board of Directors，The meeting examined and adopted of the Proposal on theRemuneration of Directors of the 10th Board of Directors of the Company，The meeting examined and adopted the Proposal forHolding 2022 Second provisional Shareholders' General Meeting.The 33rd (Provisional) The meeting examined and adopted the "Proposal on the Evaluation Results of the Company's Management Members' Term of
meeting of the ninth Board September September152022 162022 Operation Performance" and agreed to the results of the company's management members' tenure-term business performanceof Directors evaluation.The meeting examined and adopted the "Proposal on Election of the Chairman of the Tenth Board of Directors"，Themeeting examined and adopted the "Proposal on the Appointment of the Company's General Manager Board Secretary and
Securities Affairs Representative"，The meeting examined and adopted the "Proposal on the Appointment of Deputy GeneralThe 1st (Provisional) Managers and Other Personnel of the Company"，The meeting examined and adopted the "Proposal on Amending the Rules ofmeeting of the Tenth Board September September202022 212022 Procedure of the Risk Management Committee of the Company's Board of Directors"，The meeting examined and adopted theof Directors "Proposal on Election of the Audit Committee of the Tenth Board of Directors"，The meeting examined and adopted the "Proposalon Election of the Remuneration and Appraisal Committee of the Tenth Board of Directors"，The meeting examined and adoptedthe "Proposal on Election of the Strategy Committee of the Tenth Board of Directors"，The meeting examined and adopted the"Proposal on Election of the Risk Management Committee of the Tenth Board of Directors".The meeting examined and adopted the Proposal on Amending Part of the Articles of Association of the Company，The meetingThe 2nd (Provisional) examined and adopted the Proposal on Amending of Independent director system of Guangdong Provincial Expressway
meeting of the Tenth Board October October Development Co. Ltd.，The meeting examined and adopted the Proposal on Increasing Capital to Beijing-Zhuhai Expresswayof Directors 21 2022 222022 Guangzhu Section Co. Ltd. to Invest in the Reconstruction and Expansion Project of Nansha-Zhuhai Section of Guangzhou-MacaoExpressway The meeting examined and adopted the Proposal for Holding 2022 Third Provisional Shareholders' General Meeting.The 3rd (Provisional) The meeting examined and adopted the Proposal concerning the Third Quarter of 2022， The meeting examined and adopted the
meeting of the Tenth Board October October Proposal of the Investment in Partial Equity Projects of Beijing Institute of Architectural Design for Capital Increase in Yuegao
of Directors 272022 282022 Capital Holdings (Guangzhou) Co. Ltd.The 4th (Provisional)
meeting of the Tenth Board November November The meeting examined and adopted the " Proposal Beijing-Zhuhai Expressway Guangzhu Section Co. Ltd.'s Application for an
of Directors 172022 182022 Entrustment Loan of 500 million yuan from Guangdong Communication Group Co. Ltd."
The 5th (Provisional) November December The meeting examined and adopted the Proposal on the Formulation of Guangdong Provincial Expressway Development Co.meeting of the Tenth Board 302022 12022 Ltd.’s Guarantee Management System，The meeting examined and adopted the Proposal on the Formulation of Guangdongof Directors Provincial Expressway Development Co. Ltd.’s Liability Management System，The meeting examined and adopted the Proposal
422022 Annual Report
Session Convening Disclosuredate date Meeting resolution
on the Formulation of Guangdong Provincial Expressway Development Co. Ltd.’s Compliance Management System，The meetingexamined and adopted the Proposal of the Formulation of Rules of Procedure of the Compliance Committee of the Board of
Directors，The meeting examined and adopted the Proposal on the Establishment of a Compliance Committee of the Board ofDirectors，The meeting examined and adopted the Proposal of Employment Agreement for Company's Managers’Members andLetter of responsibility for the management objectives of the term of office，The meeting examined and adopted the Proposal oncommissioning construction management matters for the reconstruction and expansion of the Nansha-Zhuhai section of the
Guangzhou-Macao Expressway ".The meeting examined and adopted the "Proposal on The Total Remuneration Management System of Guangdong Provincial
Expressway Development Co. Ltd.(Trial)"，The meeting examined and adopted the "Proposal on Revising the Measures for theManagement of Remuneration of Members of the Management Level of Guangdong Provincial Expressway Development Co.Ltd.(Trial)"， The meeting examined and adopted the "Proposal on the Remuneration Management Measures of GuangdongThe 6th (Provisional) Provincial Expressway Development Co. Ltd.(Trial)"，The meeting examined and adopted the "Proposal on the Administrativemeeting of the Tenth Board December December Measures for the Distribution of Incremental Incentive Remuneration of Guangdong Provincial Expressway Development Co.of Directors 132022 142022 Ltd.(Trial)"，The meeting examined and adopted the "Proposal on the System for the Selection and Appointment of Members ofthe Management Level of Guangdong Provincial Expressway Development Co. Ltd.(Trial)"，The meeting examined and adoptedthe "Proposal on the Implementation Measures for the ‘Three Importance and One Greatness Decision-making System’ of
Guangdong Provincial Expressway Development Co. Ltd."，The meeting examined and adopted the "Proposal on the Amendmentof the Rules of Procedure of the Board of Directors of Guangdong Provincial Expressway Development Co. Ltd. "，The meetingexamined and adopted the "Proposal for Holding 2022 Fourth Provisional Shareholders' General Meeting" .
432022 Annual Report
2. Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholders
Number of Number of
board Number of board Number of Whether to
Name of meetings board meetings board
Number of attend the General
attended meetings attended by meetings board board meetings ofdirector during the attended in means of attended by meetings meeting in shareholders
reporting person communicati proxy absent from person twice attended
period on in a row
Miao Deshan 9 2 7 0 0 No 4
Zheng Renfa 4 1 3 0 0 No 0
Wang
Chunhua 15 3 12 0 0 No 5
Lu Ming 15 3 12 0 0 No 5
Zuo Jiang 15 3 12 0 0 No 5
Cheng Rui 6 1 5 0 0 No 3
Chen Min 9 2 7 0 0 No 2
Zeng Zhijun 15 3 12 0 0 No 5
You
Xiaocong 15 3 12 0 0 No 5
Yao
Xuechang 6 1 5 0 0 No 3
Ren Hua 9 2 7 0 0 No 2
Wu Hao 15 3 12 0 0 No 5
Huang Hai 2 0 2 0 0 No 0
Kuang Yu 10 2 8 0 0 No 5
Gu Naikang 9 2 7 0 0 No 2
Bao
Fangzhou 9 2 7 0 0 No 2
Zhang Hua 15 3 12 0 0 No 5
Liu
Zhonghua 15 3 12 0 0 No 5
Zeng
Xiaoqing 15 3 12 0 0 No 5
You Dewei 6 1 5 0 0 No 3
Yu
Mingyuan 6 1 5 0 0 No 3
Explanation of failure to attend the board meeting in person twice in a row
None
3. Directors' objections to related matters of the Company
Whether the director raises any objection to the relevant matters of the Company
□ Yes √ No
During the reporting period the directors did not raise any objection to the relevant matters of the Company.
4. Other descriptions of directors' performance of duties
Whether the directors' suggestions on the Company have been adopted
√Yes □ No
The director's statement on whether the relevant suggestions of the Company have been adopted or not
During the reporting period all the directors of the Company diligently performed the duties entrusted by the
general meeting of shareholders carefully evaluated and considered the Company's operation management
investment corporate governance and other matters actively proposed scientifically discussed and collectively
made decisions in the board meeting and put forward multiple suggestions that meet the Company's development
needs at the present stage which were adopted by the Company in the form of resolutions of the Board of
Directors.
442022 Annual Report
VII. Situation of special committees under the Board of Directors during the reporting period
Number Other
Committee of Convening informatio Details of
name Member information meetings date Meeting content Put forward important opinions and suggestions n of duty objections
convened performan (if any)ce
The Audit Committee reviewed the 2021 financial report
prepared by the Company and reached consensus: 1. The
1. Reviewed the 2021 Company's accounting policies were properly selected
Chairman of the financial report prepared by accounting estimates were reasonable and no material
Audit committee：Liu 1 January the Company; 2. The CPA misstatement or omission was found; 2. No majorCommittee Zhonghua Member： 72022 reported the audit plan of shareholders were found occupying the Company's funds;
Zhang Hua Lu Ming the 2021 financial report to 3. No external violation guarantee or abnormal related party
the Audit Committee. transactions were found; 4. The Company's financial
statements could be submitted to the CPA firm for annual
audit.
1. Reviewed the 2021 1. The Audit Committee reviewed the 2021 financial
annual financial report report submitted by the Company's Finance Department and
submitted by the Company's issued by the certified public accountant for annual review
Finance Department and with preliminary audit opinions and reached consensus as
issued by certified public follows: (1) The audit of the Company's 2021 financial
accountants with report by the certified public accountant for annual review
preliminary audit opinions; was conducted in strict accordance with the relevant norms
2. Reviewed and approved of audit business; (2) During preparation of the annual
the Proposal on Reviewing report the annual certified public accountants
the 2021 Internal Control communicated with the Audit Committee effectively and
Evaluation Report of fully listened to the opinions of the Audit Committee and
Chairman of the Guangdong Expressway consensus was reached on all major aspects in the annual
Audit committee：Liu 1 March Development Co. Ltd.；3. review; (3) The annual financial report issued by certifiedCommittee Zhonghua Member： 42022 Listened to the reports of the public accountants with preliminary audit opinions was
Zhang Hua Lu Ming Proposal on Hiring relatively complete with no major omissions and it fairly
Financial Report Audit reflected the Company's financial position as of December
Institution in 2022 and the 31 2021 and the production and operation results and cash
Proposal on Hiring Internal flow in 2020 in all major aspects. 2. The Audit Committee
Control Audit Institution in has listened to the report of the Proposal on Deliberating
2022 and reviewed relevant the "Evaluation Report for Internal Control of Guangdong
information; 4. Reviewed Expressway Development Co. Ltd. in 2021" submitted by
and approved the the Discipline Inspection and Audit Department of the
Company's 2021 Internal Company and the certified public accountant has also
Audit Work Summary and issued a preliminary audit opinion on the internal control of
2022 Internal Audit Work the Company in 2021. The certified public accountant
Plan; 5. Reviewed and believed that Guangdong Expressway maintained effective
452022 Annual Report
Number Other
Committee informatio Details of
name Member information
of Convening
meetings date Meeting content Put forward important opinions and suggestions n of duty objections
convened performan (if any)ce
approved the Proposal on internal control of financial reports in all major aspects on
Reviewing the Company's December 31 2021 in accordance with the Basic Standards
2021 Internal Control for Internal Control of Enterprises and relevant regulations.
Evaluation Work Pla . The Audit Committee deliberated and approved the
Evaluation Report for Internal Control of Guangdong
Expressway Development Co. Ltd. in 2021 and agreed to
submit the proposal to the Board of Directors for
deliberation. The Audit Committee listened to the reports
of the Proposal on Hiring Audit Institutions for Financial
Reporting in 2022 and the Proposal on Hiring Audit
Institutions for Internal Control in 2022 and reviewed
relevant materials. It is considered that Yongtuo Certified
Public Accountants LLP (Special General Partnership)
with relevant qualifications to engage in the audit business
of listed companies in accordance with the independent
objective and fair practice standards and with the
experience and ability to provide audit services for listed
companies can meet the needs of the Company's 2022
annual financial report and internal control audit and can
independently audit the Company's financial status and
therefore it is agreed that the Company will continue to
hire Yongtuo Certified Public Accountants LLP (Special
General Partnership) as the Company's annual financial
report audit institution and internal control audit institution
in 2022 and it is agreed to submit the above two proposals
to the Board of Directors and the General Meeting of
Shareholders for deliberation. 4. It deliberated and approved
the Company's Internal Audit Work Summary in 2021 and
Internal Audit Work Plan in 2022 and agreed to submit the
above proposals to the Board of Directors for deliberation.
5. It deliberated and approved the Proposal on Reviewing
the Company's "Work Plan for Internal Control Evaluation
in 2022" and agreed to the Company's Work Plan for
Internal Control Evaluation in 2022.Audit Chairman of thecommittee Liu 1 March
It reviewed the standard and The Audit Committee reviewed the standard and
Committee ： 152022 unqualified 2021 financial unqualified 2021 financial report submitted by theZhonghua Member： report submitted by the Company's Financial Management Department and issued
462022 Annual Report
Number Other
Committee of Convening informatio Details of
name Member information meetings date Meeting content Put forward important opinions and suggestions n of duty objections
convened performan (if any)ce
Zhang Hua Lu Ming Company's Financial by the certified public accountant for annual review and
Management Department concluded that the Company's financial report truly
and issued by the accountant accurately and completely reflected the overall situation of
for annual audit the Company and agreed to submit the 2021 financial
report prepared by the Company and audited by the
certified public accountant for annual review to the Board
of Directors for deliberation.The Committee believed that in 2021 the Company's
Remuneration Chairman of the directors and senior management personnel performed their
and Committee：Bao 1 March It reviewed the 2021Annual duties diligently and conscientiously and agreed to theAssessment Fangzhou 152022 Report. remuneration of directors and senior management personnel
Committee Member :Gu Naikang determined by the Company in accordance with relevant
systems and regulations in 2021.It deliberated and approved
the Proposal of Guangdong
Expressway Development
Remuneration Chairman of theCommittee Bao Co. Ltd. on Deliberating the The Committee unanimously agreed with the assessmentand ：Fangzhou 1 September Performance Assessment results of the proposal and agreed to submit the assessmentAssessment Member :Gu Naikang 152022 Results of Managers' Tenure results to the Board of Directors of the Company forCommittee Kuang Yu and the Proposal on the deliberation.Contractual Assessment
Results of Managers' Tenure
System in 2021.It deliberated and approved
the Proposal on the "Total
Salary Management System
of Guangdong Expressway
Development Co. Ltd.Remuneration Chairman of the (Trial)" Proposal on
and Committee：You December Amending the The Committee deliberated and approved the proposal and
Assessment Dewei 1 132022 "Administrative Measures agreed to submit it to the Board of Directors of the
Committee Member :Zhang Hua for Managers' Salary of Company for deliberation.Kuang Yu Guangdong Expressway
Development Co. Ltd.(Trial)" and Proposal on the
"Salary Management
Measures of Guangdong
Expressway Development
472022 Annual Report
Number Other
Committee of Convening informatio Details of
name Member information meetings date Meeting content Put forward important opinions and suggestions n of duty objections
convened performan (if any)ce
Co. Ltd. (Trial)" Proposal
on "Administrative
Measures for Incremental
Incentive Salary
Distribution of Guangdong
Expressway Development
Co. Ltd. (Trial)" and
Proposal on "Selection and
Appointment System of
Managers of Guangdong
Expressway Development
Co. Ltd. (Trial)".Chairman of the The Committee believed that the content of the Company's
Committee：Zheng It deliberated the materials "Fourteenth Five-Year" Development Plan is
Strategy Runfa，Member： 1 January of the Company's comprehensive and clear which is in line with the actualCommittee Wang Chunhua Bao 262022 "Fourteenth Five-Year" situation of the Company and it agreed to submit theFangzhou Zhang Hua Development Plan. Company's "Fourteenth Five-Year" Development Plan to
and Zeng Xiaoqing the Board of Directors for deliberation.Chairman of the
Risk Committee Liu It deliberated and approved：
Management Zhonghua Member 1 November the proposal on the results The Committee agreed with the results of the 2022 risk：
Committee Miao Deshan You 302022 of the risk assessment in assessment.Dewei 2022.Chairman of the It deliberated and approved
Compliance Committee：You 1 December the Proposal on Deliberating
All members of the Committee unanimously agreed that the
Committee Dewei Member：Yu 132022 and Determining the company would carry out special work to prevent
Mingyuan Wu Hao Compliance Risk in 2023. expressway traffic safety and compliance risks in 2023.
482022 Annual Report
VIII.The working status of the board of supervisors
The board of supervisors finds out whether the company has risks during the monitoring activities during the re
porting period
□ Yes √ No
The Supervisory Committee has no objection to the supervision matters during the reporting period.IX. Particulars about employees.
1.Number of staff professional structure and educational background
Number of in-service staff of the parent company(person) 106
Number of in-service staff of the main subsidiaries(person) 2976
The total number of the in-service staff(person) 3082
The total number of staff receiving remuneration in the current
3077
period(person)
Retired staff with charges paid by the parent company and
129
main subsidiaries (person)
Professional
Category Number of persons（person）
Operating personnel 2531
Sale personnel 0
Technology Personnel 359
Financial personnel 62
Management personnel 130
Total 3082
Education
Category Number of persons（person）
Holders of master’s degree or above 51
Graduates of regular university 610
Graduates of junior colleges 1773
Other 648
Total 3082
2. Remuneration policies
Guangdong Expressway follows the principle of adhering to the benefit orientation taking into account of
efficiency and fairness and combining incentives with constraints provides active encouragement and paid
attention to the long-term. According to national laws regulations and policies it establishes the annual salary
system for the person in charge of the enterprise and the performance salary system for management posts adopts
the total salary budget to be included in the overall budget management and makes employees' salary closely
linked with individual performance and enterprise benefits according to the interrelated performance contributions
of labor management and skills.The Company provides various benefits in compliance with laws and regulations and employees enjoy
various benefits such as social insurance enterprise annuity supplementary medical care trade union mutual
insurance etc. so as to ensure that employees can share development achievements and thereby arouse their
working passion.
3.Training plan
Each business department organizes employees to participate in the business post training organized by the
competent department of industry and social professional training institutions according to the employee job
492022 Annual Report
characteristics employee job performance and industry development trend of the department. In order to help
enterprises develop with high quality and efficiently complete the task of state-owned enterprise reform it is
planned to carry out special training on state-owned enterprise reform; in order to improve employees' working
satisfaction it is planned to carry out special training on employees' mental health and physical health care. Carry
out continuing education and training for professional and technical personnel. Carry out various training
activities such as special education and incorruption education in cooperation with the party and the masses
supervision and examination etc.
4.Outsourcing situation
□ Applicable √ No Applicable
X. Specification of profit distribution and capitalizing of common reserves
Formulation implementation or adjustment of the profit distribution policy especially the cash dividend policy
during the reporting period
□Applicable √ Not applicable
During the reporting period the Company made a profit and the profit available to shareholders of the parent
company was positive but no cash dividend distribution plan was put forward.□ Applicable √ Not applicable
Profit distribution and capitalization of capital reserve during the reporting period
√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares) 0
Cash dividend for every ten shares (Yuan)(Tax-included) 4.28
A total number of shares as the distribution basis(shares) 2090806126
Cash dividend amount (yuan including tax 894865021.93
Other means (such as repurchase of shares) cash dividend
amount (yuan) 0.00
Total cash dividend (yuan including tax) 894865021.93
Distributable profit (yuan) 100%
Proportion of cash dividend in the distributable profit
The Company is in a fast growth stage there for the cash dividend will reach 80% of the profit distribution at least. Cash dividend
distribution policy.Details of profit distribution or reserve capitalization Preplan
1. Limited to 10% of the registered capital of the Parent company the net profit of the company i.e. 147681138.46 yuan is to be
allocated for statutory common reserve fund；
2.The profit for 2022 is to be distributed as follows: 894865021.93 yuan. is to be allocated as the fund for dividend distribution
for 2022. with the total shares at the end of 2022 i.e. 2090806126 shares as the base cash dividend of 4.28 yuan (including
tax) is to be distributed for every 10 shares .The remaining undistributed profits are to be carried forward to the next year. The
foreign exchange translation of the cash dividends for shareholders holding B share and overseas corporate shares will be
determined according to HKD:RMB bank’s Middle rate quoted by People’s Bank of China on the first working day after 2022
annual shareholders’ general meeting makes resolution on dividend distribution.XI. Implementation Situation of Stock Incentive Plan of the Company Employee Stock Ownership Plan
or Other Employee Incentive Measures
□Applicable √ Not applicable
None
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
The Company has established a sound corporate governance structure with clear responsibilities of general
meeting of shareholders Board of Directors Board of Supervisors and management established corporate
governance rules centered by the Articles of Association rules of procedure of general meeting of shareholders
Board of Supervisors Board of Directors and specialized committees thereunder standardized operation of
502022 Annual Report
general meeting of shareholders Board of Directors and Board of Supervisors held and convened relevant
meetings in accordance with the provisions of the Company Law and the Articles of Association and reached legal
and valid resolutions. The general meeting of shareholders is the highest authority of the Company; the Board of
Supervisors is responsible for the general meeting of shareholders and the supervision of directors and
management to perform their duties according to law is sound and effective. The Board of Directors shall be
responsible to the general meeting of shareholders and exercise the business decision-making power according to
law. It is provided with an Audit Committee the independent directors meet the quorum and the decision-making
procedures and management rules of procedure of the Board of Directors are scientific and transparent; the
management is efficient and rigorous in implementing the resolutions of the Board of Directors.The Company has set up 10 functional departments including Investment Development Department Human
Resources Department Financial Management Department Infrastructure Management Department Operation
and Management Department Discipline Inspection and Audit Department Securities Affairs Department
Comprehensive Affairs Department Legal Affairs Department and Party and Mass Work Department. The
distribution of powers and responsibilities and business processes of all functional departments are clear and
reasonable forming a working mechanism of duty performance responsibility shouldering mutual restriction and
coordination. The Company has established a perfect control system for parent-subsidiary companies and formed
a sound internal control system for each subsidiary company. Meanwhile the Company has established and
improved rules and regulations related to risk assessment fraud risk control information and communication and
maintained effective internal control.The Company has set up an Audit Committee under the Board of Directors to supervise the effective
implementation of the Company's internal control and self-evaluation of internal control. The Company has set up
the Discipline Inspection and Audit Department which is responsible for supervising the establishment and
operation of the Company's internal control system evaluating the Company's risk control and evaluating the
effectiveness of the Company's internal control. It has defined the standards of internal control defect
identification rectification procedures and internal control self-evaluation procedures and formed an effective
internal control supervision system.
2.Details of major internal control defects found during the reporting period
□ Yes √ No
XIII. Management and control of the Company's subsidiaries during the reporting period
□Applicable √ Not applicable
XIV. Internal control self-evaluation report or internal control audit report
1.Self-evaluation report on internal control
Disclosure date of
appraisal report on March 21 2023
internal control
Disclosure index of
appraisal report on www.cninfo.com.cn
internal control
The ratio of the total
assets of units included
in the scope of
evaluation accounting
for the total assets on 100.00%
the company's
consolidated financial
statements
The ratio of the 100.00%
512022 Annual Report
operating income of
units included in the
scope of evaluation
accounting for the
operating income on
the company's
consolidated financial
statements
Standards of Defects Evaluation
Type Financial Report Non-financial Report
The qualitative criteria for the evaluation of
The qualitative criteria for the evaluation of internal control deficiencies in non-financial
internal control deficiencies in financial reports reports confirmed by the Company is as follows:
confirmed by the Company is as follows: The Material deficiencies: serious violations and being
following situations (including but not limited sentenced to heavy fines or need taking criminal
to) shall be deemed as “material deficiencies” in responsibility; utterly disregard the rules of law
the internal control of the financial report. (1) illegal behaviors in the operation and management
There are major frauds made by the directors or are particularly severe and the circumstance is very
supervisors or senior management personnel in bad which leads to the suspension or cessation to
the company’s management activities; (2)There the company's daily operation and management
are material misstatements in the current activities and leads to the audit report with a
financial report but the internal control failed to disclaimer of opinion or a negative opinion issued
find the misstatements during its operation; (3) by the CPA; the negative news spread all over the
The supervisions made by the company's audit country which caused severe damage to the
committee and the internal audit organization on company’s reputation; resulted in decease of a
the internal control are invalid; (4) The control number of workers or citizens or resulted in
environment is invalid; (5)The material damages that are unable to recover to workers or
deficiencies found and reported to the citizens; reached the circumstance(grade II) of
management but are not corrected within a major environmental event. Significant
reasonable time; (6)There is an administrative deficiencies: illegal and being punished; disregard
punishment from the securities regulatory the requirements of the company’s management
institution due to accounting errors. system and the relevant rules of law there are
The following situations (including but not illegal acts of using the authority to seek illegal
limited to) shall be deemed as interests in the work which significantly affect the
Qualitative standard “significant deficiencies” in the internal control
efficiency and the result of daily operation and
of the financial report and management activities and lead to the audit report
there are intense signs for the situations with qualified opinion issued by the CPA; the
becoming “material deficiencies”: (1) Frauds negative news spread in a region which caused the
made by staff in key positions; (2)The large-extent damage to the company’s reputation;
supervisory function on compliance is invalid resulted in decease of a worker or a citizen or
and the violations of regulations may have a resulted in damages that need long time to recover
significant impact on the reliability of the to workers or citizens;
financial report; (3)The significant deficiencies reached the circumstance(grade Ⅲ) of big
reported to the management but are not environmental event. General deficiencies: minor
corrected within a reasonable period. violations; the awareness of management under in
The following situations (including but not compliance with laws and regulations is weaklimited to) shall be deemed as “general lacking of business and management knowledgedeficiencies” in the internal control of the and there are phenomena such as being slack in
financial report. (1) Frauds made by staff in non performing management duties being passive and
key positions or business operators execute the poorly execute the institution in the work which
implementation procedures not strictly shall affect the efficiency and the result of daily
conforming to the company’s policy but resulted operation and management activities and lead to
in no significant impact on the reliability of the small effects to the company’s management goal;
financial report. (2)The supervisory function on the negative news spread within the company
compliance is invalid and the violations of which caused the little-extent damage to the
regulations may not have a significant impact on company’s
the reliability of the financial report; (3)The reputation; shortly affected the health of the
general deficiencies reported to the management workers or citizens and the workers or citizens can
but are not corrected within a reasonable period. be recovered in a short time; reached thecircumstance(grade Ⅳ) of general environmental
event.Standards of The qualitative criteria for the evaluation of The qualitative criteria for the evaluation of
522022 Annual Report
Quantization internal control deficiencies in financial reports internal control deficiencies in financial reports
confirmed by the Company is as follows: confirmed by the Company is as follows: Material
Material deficiencies: potential deficiencies: potential misstatement≧1% of the
misstatement≧1% of the total amount of the total amount of the
owner’s equity or RMB 200 million; significant owner’s equity or RMB 200 million; significant
deficiencies: 0.5% of the total amount of the deficiencies: 0.5% of the total amount of the
owner’s equity or RMB 100 million≤potential owner’s equity or RMB 100 million≤potential
misstatement＜1% of the total amount of the misstatement＜1% of the total amount of the
owner’s equity or RMB 200 million; general owner’s equity or RMB 200 million; general
deficiencies: potential misstatement＜0.5% of deficiencies: potential misstatement＜0.5% of the
the total amount of the owner’s equity or RMB total amount of the owner’s equity or RMB 100
100 million Standards of Quantization million Standards of Quantization
Number of major
defects in financial 0
reporting（a）
Number of major
defects in non financial 0
reporting (a)
Number of important
defects in financial 0
reporting（a）
Number of important
defects in non financial 0
reporting（a）
2. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
In our opinion Guangdong Expressway has maintained effective financial report internal control in all material aspects according
to the basic standards for Enterprise internal control and relevant regulations ended December 31 2022.Disclosure of internal audit report Disclosure
Disclosure date of audit report
March 212023
of internal control (full-text)
Disclosure index of audit report
www.cninfo.com.cn
of internal control (full-text)
Internal audit report’s opinion Unqualified audit opinion
Non-financial reporting has material deficiencies No
Has the CPAs issued a qualified auditor’s report of internal control .□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
XV. Rectification of self-examination problems in special governance actions of listed companies
According to the Notice on Well Ensuring Self-examination and Self-correction for Special Governance
Actions of Listed Companies issued by Guangdong Securities Regulatory Bureau the Company carefully combed
the corporate governance including the establishment of the organization the revision of the company system the
operation and decision-making of the organization the code of conduct of controlling shareholders and related
parties the related party transactions and the internal control standard system.Upon self-examination it is found that the Company strictly follows the requirements of the Company Law
the Securities Law the Governance Guidelines for Listed Companies the Stock Listing Rules and other laws and
regulations to build and improve the corporate governance structure and improve the standard operation level. The
532022 Annual Report
Company has formulated the Articles of Association the rules of procedure for the operation of the third meetings
the working rules of the special committees of the Board of Directors the working rules of the general manager
and other systems as well as the internal control system covering the Company's financial management
investment management information disclosure related party transactions external guarantee fund raising and
other aspects of operation and management and all these systems have been well implemented.The general meeting of shareholders performs its functions effectively in strict accordance with the Company
Law the Articles of Association and other relevant regulations. The Board of Directors is responsible to the
general meeting of shareholders bears the ultimate responsibility of daily operation and management holds
meetings according to legal procedures and exercises its powers. In the attitude of being responsible to all
shareholders the Board of Supervisors maintains close contact and communication with the Board of Directors
and management and effectively performs all supervisory powers and obligations.The Company must operate independently in terms of business personnel assets institutions and finance for
controlling shareholders.The Company rectified the insufficiency in number of meetings held by the professional committee of the
Board of Directors every year. During the reporting period the Audit Committee of the Board of Directors held 4
meetings; the Remuneration and Assessment Committee held 3 meetings; the Strategy Committee and the Risk
Management Committee held 1 meeting respectively. Communication supervision and verification of internal and
external audit of the Company by the professional committees of the Board of Directors; it reviews the
remuneration policies and programs of directors and senior management personnel of the Company; studies the
strategic development direction of the Company and the establishment of enterprise risk management system puts
forward guiding opinions for the establishment of enterprise risk management system and provides advice and
suggestions for major decisions of the Board of Directors.
542022 Annual Report
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
□ Yes √ No
Administrative penalties for environmental problems during the reporting period
None
Refer to other environmental information disclosed by key pollutant discharge units
None
Measures and effects taken to reduce its carbon emissions during the reporting period
□Applicable √ Not applicable
Reasons for not disclosing other environmental information
None
II. Social responsibilities
For details of CSR work please refer to the "2022 Environmental Social and Governance (ESG) Report of
Guangdong Expressway Development Co. Ltd" disclosed on Cninfo Information Network
(www.cninfo.com.cn) on March 21 2023
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
None
552022 Annual Report
VI. Important Events
I. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company shareholder
actual controller acquirer director supervisor senior management personnel and other related parities.√Applicable □Not applicable
Time of
making Period of
Commitment Commitment maker Type Contents commitment commitment
Fulfillment
The predicted net profit of Guangdong Guanghui Expressway Co. Ltd. after
deducting non-recurring gains and losses in 2020 2021 and 2022 (hereinafter
Guangdong referred to as "predicted net profit") is RMB 652477500 RMB
Provincial Freeway Performance 1112587300 and RMB 1234200900 respectively. According to the special November
Co.Ltd. commitment audit opinion issued by the accounting firm if the accumulated realized net 25 2020-2022
Normal
profit of Guangdong Guangzhou-Huizhou Expressway Co. Ltd. at the end of 2020 performance
any fiscal year does not reach the accumulated predicted net profit within the
compensation period Guangdong Provincial Freeway Co.Ltd. will
compensate in cash as agreed.
1. The explanations commitment and information provided by the Company
Commitment for this transaction are authentic accurate and complete and there are no false
on share records misleading statements or major omissions. 2. The information
reform provided by the Company to the intermediaries that provide professional
Commitment on services such as auditing evaluation legal and financial consulting for this
authenticity transaction is authentic accurate and complete original written information or
Guangdong accuracy and duplicate information and the duplicate or photocopy of the information is November
Expressway completeness of consistent with its original information or original copy; The signatures and 25
Permanently Normal
the information seals of all documents are authentic and the legal procedures required for 2020
effective performance
provided signing and sealing have been fulfilled and legal authorization has beenobtained; There are no false records misleading statements or major
omissions. 3. The Company guarantees that it will provide timely information
about this transaction in accordance with relevant laws and regulations
relevant regulations of China Securities Regulatory Commission and
Shenzhen Stock Exchange ensure the authenticity accuracy and completeness
562022 Annual Report
Time of
making Period of Fulfillment
Commitment Commitment maker Type Contents commitment commitment
of such information and guarantee that there are no false records misleading
statements or major omissions. 4. The Company shall bear individual and joint
legal responsibilities for the authenticity accuracy and completeness of the
information provided or disclosed for this exchange. In case of any loss caused
to investors due to violation of the above commitments the Company will
bear corresponding liability for compensation according to law.
1. The explanations commitment and information provided by the Promisee
for this transaction are authentic accurate and complete and there are no false
records misleading statements or major omissions. 2. The information
provided by the Promisee to the intermediaries that provide professional
services such as auditing evaluation legal and financial consulting for this
transaction is authentic accurate and complete original written information or
duplicate information and the duplicate or photocopy of the information is
consistent with its original information or original copy; The signatures and
seals of all documents are authentic and the legal procedures required for
signing and sealing have been fulfilled and legal authorization has been
All directors Commitment on obtained; There are no false records misleading statements or major
supervisors and authenticity omissions. 3. The Promisee guarantees that it will provide timely information
senior management accuracy and about this transaction in accordance with relevant laws and regulations November Permanently Normal
personnel of completeness of relevant regulations of China Securities Regulatory Commission and 25 effective performance
Guangdong the information Shenzhen Stock Exchange ensure the authenticity accuracy and completeness 2020
Expressway provided of such information and guarantee that there are no false records misleading
statements or major omissions. 4. If this transaction is suspected of false
records misleading statements or major omissions in the information provided
or disclosed and is put on file for investigation by judicial organs or by China
Securities Regulatory Commission the transfer of its shares with interests in
the listed company will be suspended until the investigation conclusion of the
case is obtained. 5. The Promisee shall bear individual and joint legal
responsibilities for the authenticity accuracy and completeness of the
information provided or disclosed for this exchange. In case of any loss caused
to investors due to violation of the above commitments the Promisee will bear
corresponding liability for compensation according to law.All directors Commitment on 1. I promise not to transfer benefits to other units or individuals withoutsupervisors and filling measures to compensation or under unfair conditions nor to damage the interests of the Novembersenior management dilute immediate Company by other means. 2. I promise to restrain my job consumption 25
Permanently Normal
personnel of reward behavior. 3. I promise not to use the assets of the Company to engage in any 2020
effective performance
Guangdong investment and consumption activities unrelated to my duties. 4. I promise that
572022 Annual Report
Time of
making Period of
commitment commitment FulfillmentCommitment Commitment maker Type Contents
Expressway the salary system formulated by the Board of Directors or the Remuneration
Committee of Guangdong Expressway will be linked with the implementation
of the reward filling measures of Guangdong Expressway. 5. If Guangdong
Expressway plans to implement equity incentive I promise that the exercise
conditions of equity incentive of Guangdong Expressway to be announced will
be linked with the implementation of the reward filling measures. 6. In case of
any loss caused to Guangdong Expressway or its shareholders due to violation
of the above commitments or refusal to perform the above commitments I will
bear corresponding compensation responsibilities according to law.
1. The Company and its holding subsidiaries will not use the controlling
shareholder's holding relationship with Guangdong Expressway to conduct
business activities that harm the legitimate rights and interests of Guangdong
Expressway its minority shareholders and its holding subsidiaries. 2. The
Company and its holding subsidiaries will not use the information obtained
from Guangdong Expressway and its holding subsidiaries to engage in the
main business competing with Guangdong Expressway or its holding This letter of
subsidiaries and will not engage in any acts or activities that damage or may commitment is
damage the legitimate rights and interests of Guangdong Expressway its valid from the
minority shareholders and its holding subsidiaries. 3. If the Company and its date of signing
holding subsidiaries transfer any toll roads bridges tunnels and related to the date
Guangdong Commitment on ancillary facilities or rights invested or managed by the Company to a when the
Provincial Freeway avoiding company other than Guangdong Communications Group Co. Ltd. and the June Provincial Normal
Co.Ltd. horizontal company directly or indirectly controlled by it Guangdong Expressway will 262015 Expressway is performance
competition be entitled to the preemptive right under the same conditions unless the no longer
transferee is explicitly designated by the relevant government authorities under controlled by
the premise permitted by relevant laws and regulations. 4. In the future if the the controlling
Company and its holding subsidiaries invest in the construction of shareholder of
expressways parallel to or in the same direction within 20 km from each side Guangdong
of the expressway controlled by Guangdong Expressway Guangdong Expressway
Expressway will enjoy the priority of investment over Guangdong
Communications Group Co. Ltd. and its directly or indirectly controlled
companies except Guangdong Expressway and its holding subsidiaries except
for the projects whose investment entities are clearly designated by the
relevant government authorities under the premise permitted by relevant laws
and regulations.Guangdong Commitment on The Company will not damage the independence of Guangdong Expressway June This letter of Normal
Provincial Freeway maintaining the due to the increase of shares held by the Company after the completion of this 262015 commitment is performance
582022 Annual Report
Time of
making Period of
Commitment Commitment maker Type Contents commitment commitment
Fulfillment
Co.Ltd. independence of major asset restructuring and will continue to maintain the principle of valid from the
listed companies separation from Guangdong Expressway in terms of assets personnel finance date of signing
organization and business and strictly abide by the relevant regulations of to the date
China Securities Regulatory Commission on the independence of listed when the
companies and will not use Guangdong Expressway to provide guarantees Provincial
nor occupy Guangdong Expressway funds illegally so as to maintain and Expressway is
protect the independence of Guangdong Expressway and protect the legitimate no longer
rights and interests of other shareholders of Guangdong Expressway. controlled by
the controlling
shareholder of
Guangdong
Expressway
1. After the completion of this major asset restructuring the Company and the
companies directly or indirectly controlled by the Company and other related
parties will try to avoid related transactions with Guangdong Expressway and
its holding subsidiaries; Related transactions that are really necessary and This letter of
unavoidable are carried out in accordance with the principles of fairness commitment is
equity and compensation of equal value. The transaction price is determined at valid from the
a reasonable price recognized by the market. The transaction approval date of signing
Guangdong Commitment on procedures and information disclosure obligations are performed in
to the date
Provincial Freeway reducing and accordance with relevant laws regulations and normative documents and the
when the
Co.Ltd. standardizing interests of Guangdong Expressway and its minority shareholders are
June 26 Provincial Normal
related effectively protected. 2. The Company guarantees to exercise shareholders' 2015 Expressway is performance
transactions rights and fulfill shareholders' obligations in strict accordance with relevant no longer
laws and regulations rules and normative documents promulgated by China controlled by
Securities Regulatory Commission business rules promulgated by Shenzhen the controlling
Stock Exchange and Articles of Association of Guangdong Provincial shareholder of
Expressway Development Co. Ltd. and it will not use the controlling position Guangdong
of Guangdong Expressway's controlling shareholders to seek improper Expressway
benefits or damage the legitimate rights and interests of Guangdong
Expressway and its minority shareholders.Commitment on 1. The information involved in the explanations and commitment provided by
Guangdong authenticity the Company for this transaction are authentic accurate and complete and
Provincial Freeway accuracy and there are no false records misleading statements or major omissions. 2. The November Permanently Normal
Co.Ltd. completeness of information provided by the Company to the intermediaries that provide 25 effective performance
the information professional services such as auditing evaluation legal and financial 2020
provided consulting for this transaction is authentic accurate and complete original
592022 Annual Report
Time of
making Period of
commitment commitment FulfillmentCommitment Commitment maker Type Contents
written information or duplicate information and the duplicate or photocopy
of the information is consistent with its original information or original copy;
The signatures and seals of all documents are authentic and the legal
procedures required for signing and sealing have been fulfilled and legal
authorization has been obtained; There are no false records misleading
statements or major omissions. 3. The Company guarantees that it will provide
timely information about this transaction in accordance with relevant laws and
regulations relevant regulations of China Securities Regulatory Commission
and Shenzhen Stock Exchange ensure the authenticity accuracy and
completeness of such information and guarantee that there are no false
records misleading statements or major omissions.The Company and the companies directly or indirectly controlled by the This letter of
Company except Guangdong Expressway and its holding subsidiaries will not commitment is
damage the independence of Guangdong Expressway due to the increase in the valid from the
shares of Guangdong Expressway held by the Company and the companies date of signing
directly or indirectly controlled by the Company except Guangdong to the date
Guangdong Commitment on Expressway and its holding subsidiaries after the completion of this major when the
Communications maintaining the asset restructuring and will continue to maintain the principle of separation June 18 Provincial Normal
Group independence of from Guangdong Expressway in terms of assets personnel finance 2015 Expressway is performancelisted companies organization and business and strictly abide by the relevant regulations of no longer
China Securities Regulatory Commission on the independence of listed controlled by
companies and will not use Guangdong Expressway to provide guarantees the controlling
nor occupy Guangdong Expressway funds illegally so as to maintain and shareholder of
protect the independence of Guangdong Expressway and protect the legitimate Guangdong
rights and interests of other shareholders of Guangdong Expressway. Expressway
1. The Company and the companies directly or indirectly controlled by the This letter of
Company except Guangdong Expressway and its holding subsidiaries will not commitment is
use the controlling shareholder's holding relationship with Guangdong valid from the
Expressway to conduct business activities that harm the legitimate rights and date of signing
Guangdong Commitment on interests of Guangdong Expressway its minority shareholders and its holding to the date
Communications avoiding subsidiaries. 2. The Company and the companies directly or indirectly June when the Normal
Group horizontal controlled by the Company except Guangdong Expressway and its holding 262015 Provincial performancecompetition subsidiaries will not use the information obtained from Guangdong Expressway is
Expressway and its holding subsidiaries to engage in the main business no longer
competing with Guangdong Expressway or its holding subsidiaries and will controlled by
not engage in any acts or activities that damage or may damage the legitimate the controlling
rights and interests of Guangdong Expressway its minority shareholders and shareholder of
602022 Annual Report
Time of
making Period of
Commitment Commitment maker Type Contents commitment commitment
Fulfillment
its holding subsidiaries. 3. If the Company and other companies directly or Guangdong
indirectly controlled by the Company except Guangdong Expressway and its Expressway
holding subsidiaries transfer any toll roads bridges tunnels and related
ancillary facilities or interests invested or managed by the Company to
companies other than the Company directly or indirectly controlled by the
Company Guangdong Expressway shall be entitled to the preemptive right
under the same conditions unless the transferee is explicitly designated by the
relevant government authorities under the premise permitted by relevant laws
and regulations. 4. In the future if the Company and the companies directly or
indirectly controlled by the Company except Guangdong Expressway and its
holding subsidiaries invest in the construction of expressways parallel to or in
the same direction within 20 km from each side of the expressway controlled
by Guangdong Expressway Guangdong Expressway will be entitled to the
priority investment right compared with the Company and the companies
directly or indirectly controlled by the Company except Guangdong
Expressway and its holding subsidiaries except for the projects whose
investment entities are clearly designated by the relevant government
authorities under the premise permitted by relevant laws and regulations.
1. After the completion of this major asset restructuring the Company and
other companies and other related parties directly or indirectly controlled by
the Company except Guangdong Expressway and its holding subsidiaries will
try to avoid related transactions with Guangdong Expressway and its holding This letter of
subsidiaries; Related transactions that are really necessary and unavoidable are commitment is
carried out in accordance with the principles of fairness equity and valid from the
compensation of equal value. The transaction price is determined at a date of signing
Commitment on reasonable price recognized by the market. The transaction approval to the date
Guangdong reducing and procedures and information disclosure obligations are performed in when the
Communications standardizing accordance with relevant laws regulations and normative documents and the June Provincial Normal
Group related interests of Guangdong Expressway and its minority shareholders are 182015 Expressway is performance
transactions effectively protected. 2. The Company guarantees to exercise shareholders' no longer
rights and fulfill shareholders' obligations in strict accordance with relevant controlled by
laws and regulations rules and normative documents promulgated by China the controlling
Securities Regulatory Commission business rules promulgated by Shenzhen shareholder of
Stock Exchange and Articles of Association of Guangdong Provincial Guangdong
Expressway Development Co. Ltd. and it will not use the controlling position Expressway
of controlling shareholders to seek improper benefits or damage the legitimate
rights and interests of Guangdong Expressway and its minority shareholders.
612022 Annual Report
Time of
making Period of
Commitment Commitment maker Type Contents commitment commitment
Fulfillment
1. The explanations commitment and information provided by the Company
for this transaction are authentic accurate and complete and there are no false
records misleading statements or major omissions. 2. The information
provided by the Company to the intermediaries that provide professional
services such as auditing evaluation legal and financial consulting for this
transaction is authentic accurate and complete original written information or
duplicate information and the duplicate or photocopy of the information is
consistent with its original information or original copy; The signatures and
seals of all documents are authentic and the legal procedures required for
signing and sealing have been fulfilled and legal authorization has been
obtained; The validity of the originals of each document has not been revoked
within its validity period and such originals are held by their respective legal
holders up to now; There are no false records misleading statements or major
omissions. 3. The Company guarantees that if there are false records
misleading statements or major omissions in the information provided or
Commitment on disclosed for this transaction which are filed for investigation by judicial
Guangdong authenticity organs or filed for investigation by China Securities Regulatory Commission
Communications accuracy and before the investigation conclusion is revealed the Company promises to
November Permanently Normal
Group completeness of suspend the transfer of shares with interests in Guangdong Expressway and
25 effective performance
the information submit the written application for suspension of transfer and the stock account 2020
provided to the Board of Directors of Guangdong Expressway within two trading days
after receiving the notice of filing inspection and the Board of Directors of
Guangdong Expressway will apply for locking on behalf of the Company to
the stock exchange and the registration and clearing company; If the
application for locking is not submitted within two trading days the Board of
Directors of Guangdong Expressway is authorized to directly submit the
identity information and account information of the Company to the stock
exchange and the registration and clearing company after verification and
apply for locking; If the Board of Directors of Guangdong Expressway fails to
submit the Company's identity information and account information to the
stock exchange and the registration and clearing company the stock exchange
and the registration and clearing company are authorized to directly lock the
relevant shares. If the investigation results show that there are violations of
laws and regulations the Company promises to lock in shares and use them
voluntarily for compensation arrangements of relevant investors. 4. The
Company shall bear individual and joint legal responsibilities for the
622022 Annual Report
Time of
making Period of
commitment commitment FulfillmentCommitment Commitment maker Type Contents
authenticity accuracy and completeness of the information provided or
disclosed for this exchange. In case of any loss caused to Guangdong
Expressway or investors due to violation of the above commitments the
Company will bear corresponding liability for compensation according to law.Commitment on 1. It will not interfere with the business activities of Guangdong ExpresswayGuangdong fulfilling filling beyond authority and will not encroach on the interests of Guangdong NovemberCommunications measures to dilute Expressway. 2. In case of any loss caused to Guangdong Expressway or 25
Permanently Normal
Group immediate reward investors due to violation of the above commitments the Company will bear 2020
effective performance
corresponding liability for compensation according to law.
1. The land occupied and used by Guangzhou-Huizhou Expressway with a
total area of 3732185.08 square meters has not yet obtained the ownership
certificate. The Company undertakes that: (1) The ownership of the land use
right of the above-mentioned land is clear with no dispute and Guangzhou-
Huizhou Expressway can legally occupy and use the above-mentioned land;
(2) Guangzhou-Huizhou Expressway will continue to effectively occupy and
use the relevant land before the ownership certificate is obtained and will not
be materially adversely affected thereby; (3) After the completion of this
transaction if Guangdong Expressway suffers losses as a shareholder of
Guangzhou-Huizhou Expressway for losses suffered because Guangzhou-
Huizhou Expressway occupies and uses the above-mentioned land without
ownership certificate or engages in engineering construction on such land the
Guangdong Commitment on Company will bear the actual losses suffered by Guangdong Expressway. 2.Communications land and real The land occupied and used by Guangzhou-Huizhou Expressway with a total
November Permanently Normal
Group estate of Guanghui area of 12324867.92 square meters is currently registered under the name of
25 effective performance
Expressway Guangdong Changda Highway Engineering Co. Ltd. (now renamed as "Poly 2020
Changda Engineering Co. Ltd." hereinafter referred to as "Changda
Company") of which 8799336.79 square meters of land has obtained the
ownership certificate and the other 3525531.13 square meters of land has not
yet obtained the ownership certificate. The Company promises that after the
completion of this transaction if Guangdong Expressway suffers losses as a
shareholder of Guangzhou-Huizhou Expressway and because Guanghui
Expressway occupies and uses the land registered under the name of Changda
Company the Company will bear the actual losses suffered by Guangdong
Expressway. 3. The property ownership certificate has not been obtained for
the property with a total area of 72364.655 square meters occupied and used
by Guangzhou-Huizhou Expressway. The Company promises that: (1) The
ownership of the above-mentioned property without ownership certificate
632022 Annual Report
Time of
making Period of
Commitment Commitment maker Type Contents commitment commitment
Fulfillment
currently used by Guanghui Expressway is clear with no dispute and
Guangzhou-Huizhou Expressway can legally occupy and use the above-
mentioned property; (2) Guangzhou-Huizhou Expressway will continue to
effectively occupy and use the above-mentioned property before the property
ownership certificate is obtained and will not be materially adversely affected;
(3) After the completion of this transaction if Guangdong Expressway suffers
losses as a shareholder of Guangzhou-Huizhou Expressway and because
Guangzhou-Huizhou Expressway occupies and uses the above-mentioned
property without relevant property ownership certificate the Company will
bear the actual losses suffered by Guangdong Expressway.
1. The explanations commitment and information provided by the Company
for this transaction are authentic accurate and complete and there are no false
records misleading statements or major omissions. 2. The information
provided by the Company to the intermediaries that provide professional
services such as auditing evaluation legal and financial consulting for this
transaction is authentic accurate and complete original written information or
duplicate information and the duplicate or photocopy of the information is
Commitment on consistent with its original information or original copy; The signatures and
authenticity seals of all documents are authentic and the legal procedures required for
Guangdong Guanghui accuracy and signing and sealing have been fulfilled and legal authorization has been November
Expressway Co. Ltd. completeness of obtained; There are no false records misleading statements or major 25
Permanently Normal
the information omissions. 3. The Company guarantees that it will provide timely information 2020
effective performance
provided about this transaction in accordance with relevant laws and regulationsrelevant regulations of China Securities Regulatory Commission and
Shenzhen Stock Exchange ensure the authenticity accuracy and completeness
of such information and guarantee that there are no false records misleading
statements or major omissions. 4. The Company shall bear individual and joint
legal responsibilities for the authenticity accuracy and completeness of the
information provided or disclosed for this exchange. In case of any loss caused
to investors due to violation of the above commitments the Company will
bear corresponding liability for compensation according to law.In order to promote the smooth progress of the issue of shares the cash It continued to
Guangdong purchase of assets and the raising of matching funds (hereinafter referred to as push forward
Communication Other commitment "the major asset restructuring") approved by Guangdong Expressway April the progress of Normal
Group Co. Ltd Development Co. Ltd. at its second extraordinary shareholders' meeting in 272019 accreditation performance2015 with regard to all the land and real estate (hereinafter referred to as and completed
"relevant land and real estate") owned by Guangdong Fokai Expressway Co. the registration
642022 Annual Report
Time of
making Period of
Commitment Commitment maker Type Contents commitment commitment
Fulfillment
Ltd. (hereinafter referred to as "Fokai Company") and Jingzhu Expressway procedures of
Guangzhu Section Co. Ltd. (hereinafter referred to as "Guangzhu East relevant land
Company") without ownership certificates (hereinafter referred to as "relevant and real estate
land and real estate") disclosed in the report of Guangdong Expressway ownership
Development Co. Ltd. on issuing shares and paying cash to purchase assets within three
and raising matching funds and related transactions the company undertook to years after the
urge Fokai Company and Guangzhu East Company to go through the relevant
ownership registration formalities according to the following plan under the policies were
condition that it is conducive to safeguarding the rights and interests of listed clear and the
companies; Continued to push forward the progress of accreditation and relevant land
completed the registration procedures of relevant land and real estate and real estate
ownership within three years after the relevant policies were clear and the met the
relevant land and real estate met the conditions for handling the registration conditions for
procedures of ownership in accordance with the relevant laws and regulations handling the
and the requirements of the competent government departments. registration
procedures of
ownership in
accordance
with the
relevant laws
and regulations
and the
requirements of
the competent
government
departments
Completed on
time(Y/N) Yes
652022 Annual Report
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the
forecast period the company has assets or projects meet the original profit forecast made and the reasons
explained
√Applicable □ Not applicable
Earnings Current Current Reasons for
forecast asset Forecast start Forecast end forecast Actual not meeting
Original Originalperformance performance the forecast forecast forecastor project time time (RMB 10 (RMB 10 (if disclosure disclosurename ， ，000） 000） applicable) date indexThe impact
Guanghui
Expressway February December
of the Public
299926.57 277077.89 health events November www.cninfo.
Co. Ltd. 12020 312022 and other 262020 com.cn
factors
Commitments made by the company’s shareholders and counterparties in the reporting year’s operating performa
nce
□ Applicable □Not applicable
(1) Content of profit compensation commitment
In 2020 the Company acquired the 21% equity of Guangdong Guanghui Expressway Co. Ltd held by
Guangdong Expressway Co. Ltd (hereinafter referred to as "Guangdong Expressway") in cash (hereinafter
referred to as the "Transaction"). The company signed the Profit Compensation Agreement with the provincial
expressway and predicted the profit of the target asset Guanghui Company in the next three years (2020 - 2022):
Profit forecast Committed net profit (’0000 yuan)
subject 2020 2021 2022 Three years ofaccumulation
Guanghui Company 65247.75 111258.73 123420.09 299926.57
Guangdong Expressway promised that if the cumulative net profit realized by Guanghui Company at the end
of any fiscal year during the profit compensation period (2020-2022) after deducting non-recurring profits and
losses does not reach the cumulative net profit of the above commitment the Guangdong Expressway Company
shall compensate in cash annually according to the amount determined in the Profit Compensation Agreement.The specific compensation amount is as follows:
Current compensation amount by performance commitment = (cumulative forecast net profit as of the end of
the current period - cumulative realized net profit as of the end of the current period) ÷ sum of the predicted net
profit for each year during the compensation period× the transaction price of the underlying asset - the cumulative
compensation amount paid by Guangdong Expressway. Where the compensation amount calculated in each year
is less than 0 yuan the value of 0 yuan is taken and the amount that has been compensated shall not be written
back.
(2) The fulfillment of the profit compensation commitment
In 2020 Guanghui Company achieved a net profit of 780305000 yuan and the net profit after deducting
non-recurring profits and losses was 769232600 yuan; the actual profit was 116755100 yuan more than the
profit forecast of 652477500 yuan thus the completion rate to the profit forecast was 117.89%.
662022 Annual Report
In 2021 Guanghui Company achieved a net profit of 1111564500 yuan and the net profit after deducting
non-recurring profits and losses was 1105444400 yuan; the actual profit was 7142900 yuan less than the profit
forecast of 1112587300 yuan thus the completion rate to the profit forecast was 99.36%. As of the end of the
2021 fiscal year the cumulative net profit (excluding non-recurring profit and loss) for the two years was
1874677000 yuan which was 109612200 yuan more than the cumulative profit forecast of 1765064800 yuan thus
the completion rate to profit forecast was 106.21%.In 2022 Guanghui Company achieved a net profit (excluding non-recurring profit and loss) of 916307300
yuan. The actual profit was 317893600 yuan less than the profit forecast of 1234200900 yuan.As of the end of 2022 Guanghui Company 's three-year cumulative net profit (excluding non-recurring profit
and loss) was 2770778900 yuan which was 228486800 yuan less than the three-year cumulative profit forecast of
2999265700 yuan thus the completion rate to profit forecast was 92.38%.
Unit: 0000 yuan
The number of profit forecast The number of actual profit Difference Cumulative difference
202065247.7576923.2611675.5111675.51
2021111258.73110544.44-714.2910961.22
2022123420.0989610.19-33809.90-22848.68
(3) The reason for the difference between Guanghui Company's actual profit and profit forecast
In 2022 the Guanghui Expressway continued to be affected by the multi-point spread of the Public health
events in Guangdong Province and the local Public health events prevention policies restricted the cross-regional
movement of people and vehicles which had a significant negative impact on the toll revenue of expressways.Especially in the fourth quarter with the aggravation of the Public health events in Guangzhou and the State
Council's request for a 10% reduction in truck tolls in toll roads in the fourth quarter of 2022 the toll revenue of
Guanghui Expressway experienced a further decline. The combination of multiple factors led to a sharp YOY
decline in toll revenue of Guanghui Expressway in 2022.The traffic volume toll revenue and YOY changes of Guanghui Expressway in 2022 are shown in the following table:
Unit: '0000 vehicles '0000 yuan
Traffic volume in 2022 Tolls revenue in 2022
Time
Data by month YOY growth rate Data by month YOY growth rate
January 691.34 -0.98% 17601.64 -5.85%
February 511.28 11.81% 11331.31 6.70%
March 548.61 -26.77% 14505.45 -29.43%
April 557.68 -20.90% 12926.71 -23.53%
May 620.62 -13.55% 14591.43 -18.63%
June 680.30 20.99% 17084.84 18.13%
July 776.41 -2.07% 19721.69 -2.23%
August 766.88 2.66% 19706.32 -0.88%
September 705.77 -5.53% 17665.73 -11.96%
October 613.17 -8.11% 12018.71 -20.69%
November 519.07 -30.10% 12268.82 -40.55%
December 559.52 -21.03% 13699.28 -21.92%
672022 Annual Report
Traffic volume in 2022 Tolls revenue in 2022
Time
Data by month YOY growth rate Data by month YOY growth rate
Total 7550.65 -8.98% 183121.92 -13.87%
(4). Measures taken by the Company
In line with the attitude of being responsible to the listed company and all investors the Company will in
accordance with the provisions of the Profit Compensation Agreement negotiate matters related to the
performance commitment with the party responsible for profit compensation upon the actual situation of
Guanghui Company's performance affected by the Public health events and then will submit the plan to the
Company's board meeting and the shareholders' general meeting for deliberation in a timely manner after
negotiation.Completion of performance commitment and its impact on goodwill impairment test.None.II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
None
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
None
IV. Explanation of the Board of Directors on the latest "Non-standard Audit Report"
□ Applicable √ Not applicable
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of directors
and supervisory board
□ Applicable √ Not applicable
VI. Explain change of the accounting policy accounting estimate and measurement methods as compared
with the financial reporting of last year.None
VII.Explain change of the consolidation scope as compared with the financial reporting of last year.√Applicable□ Not applicable
During the Reporting Period the Company transferred the 100% equity of Guangdong Expressway
Technology Investment Co. Ltd-a wholly-owned subsidiary-to Guangdong Litong Technology Investment Co.Ltd with the equity delivery date of March 29 2022 therefore it was no longer included in the scope of
consolidated financial statements at the end of the reporting period.VIII. Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs Yong Tuo Certified Public Accountants (SpecialGeneral Partnership)
Remuneration for domestic accounting firm (Ten thousands yuan) 125.2
Successive years of the domestic CPAs offering auditing services 3 years
682022 Annual Report
Name of CPA Shi Shaoyu Huang Zhiyan
Continuous years of audit services of certified public accountants of domestic
public accounting firms 3 yearsName of the Overseas CPAs（If any NoneRemumeration for overseas accounting firm (Ten thousands yuan)（If any） 0
Successive years of the overseas CPAs offering auditing services（If any） None
Name of CPA（If any） None
Continuous years of audit services of certified public accountants of overseas
public accounting firms（if any None）
Has the CPAs been changed in the current period
□Yes √ No
A detailed explanation of the change of employment and accounting firm
√Applicable □ Not applicable
On March 15 2022 the "Proposal on Hiring the Internal Control Audit Agency for 2022" was approved in
the 27th meeting of the ninth session of the board of directors and it agreed that the Company will continue to
hire Yongtuo Accounting Firm (LLP) as the internal control auditor for 2022. On May 17 2022 the "Proposal on
Hiring the Internal Control Audit Agency for 2022" was approved in the Company's 2021 Annual General
Meeting of Shareholders.IX. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable
X. Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
None
XI. Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
None
XII. Situation of Punishment and Rectification
□Applicable √ Not applicable
None
XIII. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XIV. Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
None
2. Related-party transactions arising from asset acquisition or sale
□Applicable √ Not applicable
None
3. Related-party transitions with joint investments
□Applicable √ Not applicable
692022 Annual Report
None
4. Credits and liabilities with related parties
□Applicable √ Not applicable
None
5. Transactions with related finance company especially one that is controlled by the Company
√ Applicable □Not applicable
Deposit business
Related party Relationship Maximum Deposit Beginning The amount of this period
daily deposit interest rate balance Total amount Endinglimit（10， range （10， Total deposit is withdrawn balance000） 000） amount for this （10，
(10000 ) period(1000 000）
0)
Guangdong
Communicati Controlled
ons Group by the same 300000 0.35%- 152373.48 736897.41 649874.28 239396.61
Finance Co. parent 2.85%
Ltd company
Loan business
Related party Relationship Beginning The amount of this period
balance Total
（10， Total loanLoan limit Loant repayment Ending000） amount of10 interest rate amount of balance（ ， the current
000 range period the current
（10，）
10 period
000）（，
000（10，）000）
Guangdong
Communicati Controlled
ons Group by the same 400000 2.95%-
Finance Co. parent 3.40%
20022.9244485.421649.0162859.33
Ltd company
Credit extension or other financial services
Related party Relationship Business type Total amount Actual amount incurred
（10，000）（10，000）Guangdong Communications Controlled by the same
Group Finance Co. Ltd parent company Credit extension 220000 63000
6. Transactions between the financial company controlled by the Company and related parties
□ Applicable √Not applicable
There is no deposit loan credit or other financial business between the financial company controlled by the
Company and related parties.
7. Other significant related-party transactions
√ Applicable □Not applicable
1. The "Proposal on the Transfer of 100% Equity of the Wholly-owned Subsidiary-Guangdong ExpresswayTechnology Investment Co. Ltd” was reviewed and approved in the 27th meeting of the ninth board of directors
of the Company. It’s agreed that the Company will transfer 100% of the equity of Guangdong Expressway
Technology Investment Co. Ltd to Guangdong Litong Technology Investment Co. Ltd by means of non-public
agreement transfer based on the asset evaluation results that have been filed as the pricing basis. The transfer price
is 50623900 yuan. It’s authorized the management team of the Company to handle matters related to this equity
transfer.
702022 Annual Report
2. The "Proposal on the Company's Expected Routine Connected Transactions in 2022" was reviewed and
approved in the twenty-seventh meeting of the ninth board of directors of the Company and agreed to the
Company's headquarters branches and wholly-owned and controlled subsidiaries’ expected routine connected
transactions in 2022 with the transaction amount totaled in 69034100 yuan.
3.The " Proposal Beijing-Zhuhai Expressway Guangzhu Section Co. Ltd.'s Application for an Entrustment
Loan of 500 million yuan from Guangdong Communication Group Co. Ltd."The website to disclose the interim
announcements on significant related-party transactions was reviewed and approved in the 4th meeting of the
Tenth board of directors of the Company and it agreed that the holding subsidiary-Beijing-Zhuhai Expressway
Guangzhu Section Co. Ltd applies for an entrusted loan from Guangdong Communication Group Co. Ltd. with
the amount is not more than 500 million yuan the loan term is 1 year and the interest rate is not higher than 1
year LPR and it adjusts quarterly which will be used to replenish liquidity and repay all debts ( including
shareholder entrusted loans).The website to disclose the interim announcements on significant related-party transactions
Description of provisional announcement Date of disclosing provisional Description of the website for disclosingannouncement provisional announcements
Announcement of related party transaction March 162022 www.cninfo.com.cn
Estimates announcement of the Daily
Related Party Transaction of 2022 March 162022 www.cninfo.com.cn
Announcement of related party transaction November 182022 www.cninfo.com.cn
XV. Significant contracts and execution
1.Entrustments contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant Guarantees
□Applicable √ Not applicable
No such cases in the reporting period.
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
None
(2)Situation of Entrusted Loans
4. Other significant contract
□ Applicable √ Not applicable
XVI. Explanation on other significant events
√Applicable□ Not applicable
The Proposal on Increasing Capital to Beijing-Zhuhai Expressway Guangzhu Section Co. Ltd. to Invest in the
Reconstruction and Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway was reviewed
and approved in the 2nd meeting of the Tenth board of directors of the Company It’s agreed that the Company
712022 Annual Report
shall take the estimated investment amount of 15.425 billion yuan of this project approved by the Development
and Reform Commission of Guangdong Province as the basis and the capital is 35% of the estimated investment
amount after excluding the expenses borne by the government and the company shall bear the capital contribution
of about 3.414 billion yuan according to the shareholding ratio which shall be subject to the final settlement price
of the project.Date of disclosing
Description of provisional announcement provisional Description of the website for disclosing
announcement provisional announcements
Announcement of Resolutions of the Second
(Provisional) Meeting of the Ten Board of Directors 2022-10-22 www.cninfo.com.cn
Announcement on External Investment 2022-10-22 www.cninfo.com.cn
XVII. Significant event of subsidiary of the Company
√ Applicable □Not applicable
Guangdong Provincial Expressway Development Co. Ltd received the informal letter No. 24-[2022] Yue
Transportation Operation-"Notice of the Department of Transportation of Guangdong Province on Issues
Concerning the Expiration of Toll Collection of Guangfo Expressway" issued by Guangdong Provincial
Department of Transportation" with the main content as follows:
1. Guangfo Expressway shall stop toll collection from 0:00 on March 3 2022 retain the existing toll
facilities and operate as usual in a zero-rate manner exempt vehicle tolls for all vehicles passing this road section
and collect vehicle tolls on behalf for other road sections.
2. After the toll collection is stopped Guangfo Expressway Co. Ltd shall continue to be responsible for the
management and maintenance of Guangfo Expressway.Guangfo Expressway Co. Ltd is a holding subsidiary to the Company and the Company holds 75% of its
equity. The Company and Guangfo Company will conduct timely inspection maintenance and management of
Guangfo Expressway and its ancillary facilities as well as communication monitoring network toll collection
and other systems in strict accordance with the national and provincial standards and specifications thus to ensure
that they are in good technical conditions and to ensure the order of network toll collection operation. It will do a
good job in traffic flow monitoring and traffic guidance after the toll collection of Guangfo Expressway is stopped
and will provide high-quality services for passing vehicles and personnel.Notice on Issues Concerning the Expiration of Toll Collection of Guangfo Expressway
Description of provisional announcement Date of disclosing Description of the website for disclosingprovisional announcement provisional announcements
Notice on Issues Concerning the Expiration of Toll
Collection of Guangfo Expressway 2022-02-23 www.cninfo.com.cn
722022 Annual Report
VII. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the ChangeAmount Proporti Share Bonu Capitalization allot s on ofcommon Other Subtotal Quantity
Proporti
ment shares onreserve fund
1.Shares with
conditional 439254717 21.01% -421322 -
subscription 421322
43883339520.99%
1.State-owned
shares 410105738 19.61% 410105738 19.61%
2.State-owned
legal person 21712738 1.04% 21712738 1.04%
shares
3.Other
domestic 7436241 0.36% -421322 -
shares 421322
70149190.34%
Including ：
Domestic
Legal person 6863511 0.33% -319575
-
31957565439360.31%
shares
Domestic
natural person 572730 0.03% -101747 -
shares 101747
4709830.02%
4.Foreign
shares 0 0.00% 0 0.00%
Including：
Foreign legal 0 0.00% 0 0.00%
person shares
Foreign natural
person shares 0 0.00% 0 0.00%
II.Shares with
unconditional 1651551409 78.99% 421322 421322 1651972731 79.01%
subscription
1.Common
shares in RMB 1302902734 62.32% 421322 421322 1303324056 62.34%
2.Foreign
shares in
domestic 348648675 16.68% 348648675 16.68%
market
3.Foreign
shares in 0 0.00% 0 0.00%
foreign market
4.Other 0 0.00% 0 0.00%
III. Total of 100.00
capital shares 2090806126 100.00% 0 0 2090806126 %
Reasons for share changed
√Applicable □Not applicable
1. During the reporting period the 419372 shares held by 36 shareholders were lifted and the shares were
changed from "domestic legal person shareholding" and "domestic natural person shareholding" to "unlimited sale
conditional shares".
2. During the reporting period
The 1950 "restricted shares held by domestic natural persons" held by the resigned director Mr. Du Jun were con
verted into "unrestricted shares"
732022 Annual Report
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□Applicable √Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In shares
Initial Number of Number of Restricted Reason for Date of
Shareholder Name Restricted Unrestricted Increased Shares in the
Shares Shares This Term Restricted Shares End of the
Restricted Restriction
This Term Term Shares Removal
Kong Lingbin and Release of
other 35 99797 99797 0 restrictions on January
shareholders sales 192022
Foshan Shunde
Yunlong Release of
Development Co. 319575 319575 0 restrictions on
January
sales 192022Ltd.Outgoing
Du Jun 7800 1950 5850 executives Januarylocked up 42022
shares
Total 427172 0 421322 5850 -- --
II. Securities issue and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□ Applicable √ Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□ Applicable √ Not applicable
3.About the existing employees’ shares
□Applicable √Not applicable
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Total Total preference
number Total shareholders with
shareholders at
of the end of the The total number of preferred shar voting rights
common 47593 month from the 48276 eholders voting rights restored at p 0 recovered at end 0
sharehol date of eriod-end (if any)(Note 8) of last month
disclosing the
ders at annual report before annual
the end report disclosed(if
742022 Annual Report
of the any)(Note8)
reportin
g period
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of
Proport Amount share
Nature
ion of Amount of of un- pledged/froze
of Number of shares held Changes in
Shareholders shares restricted restricted n
shareho at period -end reporting period
held shares held shares State
lder Amo
（%） held of
unt
share
State-
Guangdong
owned
Communication 103379724.56% 513485480 410105738
legal 42
Group Co.Ltd
person
Guangdong State-
Highway owned
22.30%466325020
Construction Co. legal
Ltd person
Shangdong
State-
Expressway
owned
Investment 10.10% 211069245 8640096
legal
Development Co.person
Ltd.Tibet Hetai State-
Business owned
4.84%101214574
management legal
Co.Ltd. person
State-
Guangdong
owned
Provincial 33355262.53% 52937491 19582228
legal 3
Freeway Co.Ltd.person
Domest
ic
Feng Wuchu natural 1.12% 23374405 1786434
person
shares
Happy life
insurance Co. Other 1.10% 22985230 6142752
Ltd.-Dividend
Oversea
Xinyue Co. Ltd. s legal 0.63% 13201086
person
Happy life
insurance Co. Ltd. Other 0.59% 12365708 -113100
－Self funds
752022 Annual Report
Happy life
insurance Co. Ltd. Other 0.58% 12115799
－Self funds
Strategic investor or
general legal person
becoming top-10
None
ordinary shareholder
due to rights issue (if
any) (see note 3)
Guangdong Communication Group Co. Ltd. is the parent company of Guangdong Highway Construction
Related or acting-in- Co. Ltd.，Guangdong Provincial Freeway Co.Ltd. and Xinyue Co. Ltd. It is unknown whether there isconcert parties among relationship between other shareholders and whether they are persons taking concerted action specified in
shareholders above the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed
Companies.Above shareholders
entrusting or entrusted
None
with voting rights or
waiving voting rights
Top 10 shareholders
including the special
None
account for repurchase
(if any) (see note 10)
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the reporting Share type
Name of the shareholder
period Share type Quantity
Guangdong Highway RMB
466325020 Common 466325020
Construction Co. Ltd shares
Shangdong Expressway RMB
Investment Development 211069245 Common 211069245
Co. Ltd. shares
Guangdong RMB
Communication Group 103379742 Common 103379742
Co.Ltd shares
RMB
Tibet Hetai Business
101214574 Common 101214574
management Co.Ltd.shares
Guangdong Provincial RMB
33355263 Common 33355263
Freeway Co.Ltd. shares
RMB
Common 20627042
Feng Wuchu shares23374405
Foreign
shares placed 2747363
in domestic
Happy life insurance Co. RMB
22985230 Common 22985230
Ltd.-Dividend shares
762022 Annual Report
Foreign
Xinyue Co. Ltd. 13201086 shares placed 13201086
in domestic
RMB
Happy life insurance Co.
12365708 Common 12365708
Ltd.－Self funds
shares
RMB
Happy life insurance Co.
12115799 Common 12115799
Ltd.－Self funds
shares
Explanation on associated
relationship or consistent
action among the top 10 Guangdong Communication Group Co. Ltd. is the parent company of Guangdong Highway Construction
shareholders of non- Co. Ltd. ，Guangdong Provincial Freeway Co.Ltd. and Xinyue Co. Ltd. It is unknown whether thererestricted negotiable shares is relationship between other shareholders and whether they are persons taking concerted action specified
and that between the top in the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed
10 shareholders of non- Companies.
restricted negotiable shares
and top 10 shareholders
Top 10 ordinary
shareholders conducting
None
securities margin trading
(if any) (see note 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-
back agreement dealing in reporting period.□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type: Legal person
Name of the
Legal Date of
Controlling Organization code Principal business activities
representative/Leader incorporation
shareholder
Equity management organization of
asset reorganization and optimized
allocation raising funds by means
including mortgage transfer of property
rights and joint stock system
Guangdong transformation project investment
Communication Group Deng Xiaohua June 232000 91440000723838552J operation and management traffic
Co. Ltd. infrastructure construction highway
and railway project operation and
relevant industries technological
development application consultation
and services highway and railway
passenger and cargo transport ship
772022 Annual Report
industry relevant overseas businesses;
Value added telecommunication
services.Equity in other
domestic and foreign
listed companies held
by the controlling Guangdong Communication Group Co. Ltd. holds 74.12% equity of Guangdong Yueyun Traffic Co. Ltd.shareholder by means a company listing H shares.of control and mutual
shareholding in the
reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Name of the actual Date of
representative Organization code Principal business activities
controller incorporation
/Leader
As an ad hoc organization directly
under the Guangdong provincial
government it is authorized by the
State-owned Assets
Guangdong provincial government
supervision and
to represent the Guangdong
administration
provincial government to perform
Commission of Li Cheng June 262004 114400007583361658
the investor's duties for the
Guangdong Provincial
supervised enterprises in
People’s Government
accordance with the law
specializing in the supervision of
state-owned assets.Equity of other
domestic/foreign listed As an ad hoc organization directly under the Guangdong provincial government it is authorized by the
company with share Guangdong provincial government to represent the Guangdong provincial government to perform the
controlling and share investor's duties for the supervised enterprises in accordance with the law specializing in the
participation by supervision of state-owned assets.controlling shareholder
in reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
782022 Annual Report
State-owned Assets Supervision
and Administration Commission
the people’s Government of
Guangdong Province
90%
Guangdong Communication
Group Co. Ltd.Guangdong Province Guangdong Highway Guangdong Province Guangdong
Transportation Construction Co. Ltd. Expressway Co. Ltd. Xinyue Co. Ltd.Development Co.Ltd
0.10%22.30%24.56%2.53%0.63%
Guangdong Provincial Expressway Development Co. Ltd
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the
company and its person acting in concert accounts for 80% of the number of shares held by the company
□Applicable √Not applicable
5.Particulars about other legal person shareholders with over 10% share held
√ Applicable □ Not applicable
Legal
Legal person person/person in Date of Register
shareholder charge of the foundation capital Main operation business or management activities
unit
Highway bridge tunnel bridge traffic infrastructure
construction investment and management technical
Guangdong Highway April 10.8 consulting leasing of road construction machinery; sales of
Construction Co. Ltd. Wang Kangchen 161987 billion construction materials construction machinery equipment;
vehicle rescue services
(operated by the branch).
6.Situation of Share Limitation Reduction of Controlling Shareholders Actual Controllers Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
IV. Specific implementation of share repurchase during the reporting period
Progress in implementation of share repurchase
□ Applicable √Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□ Applicable √Not applicable
792022 Annual Report
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
802022 Annual Report
IX. Corporate Bond
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.
812022 Annual Report
III. Debt financing instruments of non-financial enterprises
√Applicable □ Not applicable
1.Basic information
In RMB
Bon
Bond name Bond short name d Issue Value Due
Bond Inter
code day date day
balanc est Servicing way Trading
e rate
Guangdong Provincial Expressway Develo 19 Guangdong 1019 Februar 67947 Due payments once a Interba
pment Co. Ltd. 2019 first phase medium- Expressway 0025 y March March12019 12024 6476. 4% year The principal and the last instalment interest are p nk marterm notes MTN001 2 272019 99 aid in one lump sum on the redemption date. ket
Guangdong Provincial Expressway Develo 20 Guangdong 1020
pment Co. Ltd. 2020 first phase medium- Expressway 0036 March
March March 74890 Due payments once a Interba
132020 17202 17202 4755. 3% year The principal and the last instalment interest are p nk marterm notes MTN001 7 0 5 95 aid in one lump sum on the redemption date. ket
Circulation and transfer in the national inter-
Applicable trading mechanism bank bond market its listing and circulation will be carried out in accordance with the relevant regulations promulgat
ed by the National Interbank Funding Center.Overdue and unpaid bonds
□ Applicable √ Not applicable
822022 Annual Report
2. Trigger and implementation of option clauses and investor protection clauses of the issuer or investor
□ Applicable √ Not applicable
3.Information of intermediary agency
Contact
Name of bond project Name of intermediary
Name of
agency Office Address signing
person of
accountant intermediar
Tel
y agency
19 Guangdong China Lianhe Credit No.2 Jianguomenwai
Expressway MTN001 Rating Co. Ltd. Street Chaoyang No Yang Ting 010-85679696District Beijing
20 Guangdong China Lianhe Credit No.2 Jianguomenwai
Expressway MTN001 Rating Co. Ltd. Street Chaoyang No Yang Ting 010-85679696District Beijing
Whether the above agency changes during the reporting period
□ Yes √No
4. Use of raised funds
In RMB
Whether it is
Operation of Rectification of consistent with
Name of bond project Total amount Used amount Unused special account for illegal use of
the purpose use
of raised funds amount raised funds (if raised funds (if plan and other
any) any) agreementsstipulated in the
prospectus
19 Guangdong
Expressway 680000000.00 680000000.00 0.00 No No Yes
MTN001
20 Guangdong
Expressway 750000000.00 750000000.00 0.00 No No Yes
MTN001
The raised funds are used for construction projects
□ Applicable √ Not applicable
During the reporting period the Company changed the use of funds raised from the above bonds
□ Applicable √ Not applicable
5.Adjustment of credit rating results during the reporting period
□ Applicable √ Not applicable
6 The implementation and changes of guarantee debt repayment plan and other debt repayment guarantee
measures during the reporting period and their impact on the rights and interests of bond investors
□ Applicable √ Not applicable
IV. Convertible bond
□ Applicable √ Not applicable
No such cases in the reporting period.V. The loss within the scope of consolidated statements in the reporting period exceeded 10% of the net
assets at the end of the previous year
□ Applicable √ Not applicable
VI.Overdue interest-bearing debts except bonds at the end of the reporting period
□ Applicable √ Not applicable
VII.Whether there are any violations of rules and regulations during the reporting period
□ Yes √ No
832022 Annual Report
VIII. Main accounting data and financial indicators of the Company in recent two years by the end of the
reporting period
In RMB10000
Items At the end of the reporting At the same time rate ofperiod At the end of last year change
Current ratio 2.9 2.7 7.41%
Debt ratio 43.90% 40.02% 3.88%
Quick ratio 2.89 2.70 7.04%
Amount of this period Amount of last period At the same time rate ofchange
Net profit after deducting
non-recurring profit and loss 131159.93 169309.16 -22.53%
EBITDA total debt ratio 45.43% 72.85% -27.42%
Time interest earned ratio 10.37 11.88 -12.71%
Cash interest guarantee times 14.29 15.42 -7.33%
EBITDATime interest earned
ratio 14.60 16.29 -10.37%
Repayment of debt (%) 100% 100% ——
Payment of interest (%) 100% 100% ——
842022 Annual Report
X. Financial Report
I. Audit report
Type of audit opinion Standard Unqualified audit opinion
Date of signature of audit report March 202023
Yong Tuo Certified Public Accountants (special general
Name of audit firm
partnership)
Names of the Certified Public Accountants Shi Shaoyu Huang Zhiyan
Auditors’ Report
To all shareholders of Guangdong Provincial Expressway Development Co. Ltd.I. Opinion
We have audited the financial statements of Guangdong Provincial Expressway Development Co. Ltd.(hereinafter referred to as "the Company") which comprise the balance sheet as at December 31 2022 and the
income statement the statement of cash flows and the statement of changes in owners' equity for the year then
ended and notes to the financial statements.In our opinion the attached financial statements are prepared in all material respects in accordance with
Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at
December 31 2022 and its operating results and cash flows for the year then ended.II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on
these matters. We have identified the following items as key audit items that need to be communicated in the audit
report.Depreciation of fixed assets toll road
1. Item description
As described in "Notes III. 15 Fixed Assets to the Financial Statements" and "Notes V. 12 Fixed Assets to
the Financial Statements": the book value of the toll roads of Guangdong Expressway Group at the end of 2022
was RMB 9414934465.06 the depreciation amount of toll roads in 2022 is RMB 862070448.52 The Guangdong
Expressway Group toll road is depreciated according to the traffic flow method and the current depreciation
852022 Annual Report
amount is calculated according to the proportion of the actual traffic flow in the current period to the estimated
remaining total traffic flow in the operation period. The total traffic flow during the operation period refers to the
forecast of the total traffic flow of Guangdong Expressway Group during the operation period which is a major
accounting estimate. Therefore we have determined the pricing and depreciation of the toll roads of Guangdong
Expressway Group as the key audit items.
2. Audit response
In response to the above key audit matter we have implemented the following main audit procedures:
(1)Understand evaluate and test the internal control of the management of the Company on the daily
management and accounting treatment of toll roads;
(2)Check whether the actual traffic flow data applied by Guangdong Expressway Company in the
depreciation calculation of toll roads is consistent with the actual traffic flow data obtained by Guangdong
Expressway Company from external service units;
(3)Evaluate the independence and professional competence of the third-party organization employed by the
Company that carries out traffic flow forecast;
(4) Understand the methods used in traffic flow forecast reports issued by third-party organizations to
forecast the traffic flow in the future and evaluate the reliability of traffic flow forecast reports by comparing the
predicted traffic flow for the past year with the actual traffic flow for that period;
(5) Recalculate the depreciation of roads and bridges to verify the accuracy of the depreciation amount of
roads and bridges in the financial statements.II. Performance compensation
1. Item description
In 2020 Guangdong Expressway acquired the 21% stake of Guangdong Guanghui Expressway Co. Ltd
(hereinafter referred to as "Guanghui Expressway") held by Provincial Expressway. The year of 2022 was the
last year of the performance commitment by the target asset transferor of Province Expressway. However due to
the impact of the Public health events the three-year cumulative net profit of Guanghui Expressway by the end
of 2022 had failed to achieve the cumulative profit forecast in the relevant performance commitment. The
management and the asset transferor will negotiate matters related to the performance commitment in
accordance with the provisions of the Profit Compensation Agreement and the actual situation of Guanghui
Expressway's performance affected by the Public health events and the contingent consideration formed by the
performance compensation has not been recognized at present. Due to the material amount of the matter and the
significant judgment of management therefore it’s identified that the performance compensation as a key audit
matter. For matters relating to performance compensation please refer to the notes to the consolidated financial
statements "XIII. Other Important Matters".
2. Audit response
In response to the above key audit matter we have implemented the following main audit procedures:
(1) Read the letter of the transferor of the underlying asset to understand the reasons and demands of the
transferor for the target asset of failing to fulfill the performance commitment;
(2) Read the minutes of the management meeting of Guangdong Expressway and interviewed the
Guangdong Expressway management to understand their evaluation of the reasons and demands of the
transferor of the target assets;
862022 Annual Report
(3) Reviewed the "Profit Compensation Agreement" signed by the transferor of the target asset to
understand the management's evaluation of the main terms of the agreement;
(4) Reviewed the process of calculating performance compensation by the management and evaluated
whether the confirmation amount was accurate;
(5) Evaluated whether the economic benefits associated with the asset is likely to flow in.
IV. Other information
The management of Guangdong Expressway Company is responsible for other information. Other
information includes the information covered in the 2022 annual report of Guangdong Expressway Company but
does not include the financial statement and our audit report.Our audit opinion on the financial statements does not cover other information and we do not issue any form
of verification conclusion on other information.In combination with our audit of the financial statements our responsibility is to read other information and
consider in such process whether other information is materially inconsistent with the financial statements or the
information we learned during the audit or whether there appears to be a material misstatement.Based on the work that we have already performed if we determine that other information contains material
misstatements we should report such fact. In this regard we have nothing to report.V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation and for designing
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements whether due to frauds or errors.In preparing the financial statements management of the Company is responsible for assessing the Company's
ability to continue as a going concern disclosing matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations or has no
realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company's financial reporting process.VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with ISAs we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or
error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error as fraud may involve collusion forgery omissions
872022 Annual Report
misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the Company
and conclude based on the audit evidence obtained whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude
that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures
in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may
cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements including the disclosures
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements and bear all liability for the
opinion.We communicate with those charged with governance regarding among other matters the planned scope and
timing of the audit and significant audit matters including any significant deficiencies in internal control that we
identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when in extremely rare circumstances we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.Yong Tuo Certified Public CPA：
Accountants Co. Ltd.(Special
General Partnership)
Shi Shaoyu
(Project partner) ：
CPA： Huang Zhiyan
Beijing China March 202023
882022 Annual Report
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by: Guangdong Provincial Expressway Development Co. Ltd.December 312022
In RMB
Items December 31 2022 January 1 2022
Current asset：
Monetary fund 4290581490.78 2956404390.55
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 108368797.56 159053399.87
Financing of receivables
Prepayments 7785192.95 5227647.09
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 34456244.64 13761124.23
Including：Interest receivable
Dividend receivable 1205472.90 1205472.90
Repurchasing of financial assets
Inventories 640079.66
Contract assets 5286462.45
Assets held for sales
Non-current asset due within 1 year 2782974.53
Other current asset 2042395.28 21213.96
Total of current assets 4443234121.21 3143177292.34
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 2923368667.84 2627130681.24
Other equity instruments investment 1557303730.98 1577175826.05
Other non-current financial assets 101400000.00
892022 Annual Report
Items December 31 2022 January 1 2022
Property investment 2668144.93 2889263.41
Fixed assets 10098252638.07 10639272192.02
Construction in progress 753565502.12 351130455.06
Production physical assets
Oil & gas assets
Use right assets 4077555.43 14100325.01
Intangible assets 246772471.44 268504176.43
Development expenses
Goodwill
Long-germ expenses to be amortized 2103750.00
Deferred income tax asset 128179543.02 225243885.27
Other non-current asset 8374778.84 25038952.48
Total of non-current assets 15823963032.67 15732589506.97
Total of assets 20267197153.88 18875766799.31
Current liabilities
Short-term loans 430387597.20
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 197788782.77 264487139.44
Advance receipts 2718756.97 10660208.51
Contract liabilities 22000.00
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 20660328.60 19213631.91
Tax payable 72307773.41 164612512.99
Other account payable 191167560.23 177970483.76
Including：Interest payable
Dividend payable 59994517.46 22941943.24
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 117011466.96 525644368.26
Other current liability 500723556.23 726336.48
Total of current liability 1532765822.37 1163336681.35
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 5566595350.00 4572621200.00
Bond payable 1428381232.94 1427434086.58
Including：preferred stock
902022 Annual Report
Items December 31 2022 January 1 2022
Sustainable debt
Lease liability 150984.47 2773459.76
Long-term payable 2517493.12 3461832.74
Long-term remuneration payable to staff
Expected liabilities
Deferred income 61082981.63 69228093.11
Deferred income tax liability 306806527.72 315922287.64
Other non-current liabilities
Total non-current liabilities 7365534569.88 6391440959.83
Total of liability 8898300392.25 7554777641.18
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 743133557.03 713460518.49
Less：Shares in stock
Other comprehensive income 170633656.67 192177466.34
Special reserve
Surplus reserves 1373056469.02 1225375330.56
Common risk provision
Retained profit 4698247435.40 4760618543.78
Total of owner’s equity belong to the
9075877244.128982437985.17
parent company
Minority shareholders’ equity 2293019517.51 2338551172.96
Total of owners’ equity 11368896761.63 11320989158.13
Total of liabilities and owners’ equity 20267197153.88 18875766799.31
Legal Representative:Miao Deshan
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
2.Parent Company Balance Sheet
In RMB
Items December 31 2022 January 12022
Current asset：
Monetary fund 1813035761.84 1860836127.30
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 23817016.30 24208692.49
Financing of receivables
Prepayments 5515813.54 4311419.00
Other account receivable 1542022671.18 6885982.60
912022 Annual Report
Items December 31 2022 January 12022
Including：Interest receivable
Dividend receivable 36905472.90 1205472.90
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year 278562652.27
Other current asset 111143.99 11067.41
Total of current assets 3384502406.85 2174815941.07
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 6096479269.50 5792610802.46
Other equity instruments investment 1557303730.98 1577175826.05
Other non-current financial assets
Property investment 2416006.68 2637125.16
Fixed assets 5299569148.92 5707608552.14
Construction in progress 152388974.47 43594243.12
Production physical assets
Oil & gas assets
Use right assets 3069576.00 12611748.50
Intangible assets 132991895.23 140756147.03
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 122968519.19 218624401.07
Other non-current asset 14434283.48
Total of non-current assets 13367187120.97 13510053129.01
Total of assets 16751689527.82 15684869070.08
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 94446623.15 105685908.27
Advance receipts 250984.75 250984.75
Contract Liabilities
Employees’ wage payable 8103399.09 6825973.81
Tax payable 4643917.73 7330856.79
Other account payable 362996135.95 690062820.89
Including：Interest payable
Dividend payable 25694517.46 22941943.24
Liabilities held for sales
Non-current liability due within 1 year 116904509.53 456996690.91
Other current liability 33596.70 37299.97
922022 Annual Report
Items December 31 2022 January 12022
Total of current liability 587379166.90 1267190535.39
Non-current liabilities：
Long-term loan 5552070350.00 4058096200.00
Bond payable 1428381232.94 1427434086.58
Including：preferred stock
Sustainable debt
Lease liability 2445724.58
Long-term payable 2517493.12 3461832.74
Long-term remuneration payable to staff
Expected liabilities
Deferred income 6838432.16 10120879.64
Deferred income tax liability 61217804.42 66399854.20
Other non-current liabilities
Total non-current liabilities 7051025312.64 5567958577.74
Total of liability 7638404479.54 6835149113.13
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 934908293.69 934851285.51
Less：Shares in stock
Other comprehensive income 170633656.67 192177466.34
Special reserve
Surplus reserves 1193084201.46 1045403063.00
Retained profit 4723852770.46 4586482016.10
Total of owners’ equity 9113285048.28 8849719956.95
Total of liabilities and owners’ equity 16751689527.82 15684869070.08
3.Consolidated Income statement
In RMB
Items 2022 2021
I. Income from the key business 4168634113.98 5288057677.93
Incl：Business income 4168634113.98 5288057677.93
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2005705864.79 2414254320.96
Incl：Business cost 1586349035.48 1929512025.56
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract
932022 Annual Report
Items 2022 2021
reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 22267823.63 26151601.45
Sales expense
Administrative expense 191426081.46 223605442.46
R & D costs 14591773.12 13270938.73
Financial expenses 191071151.10 221714312.76
Including：Interest expense 238444227.57 282653629.93
Interest income 47404858.97 64220887.86
Add: Other income 13727651.88 17600355.16
Investment gain（“-”for loss） 254956789.70 277061254.36
Incl: investment gains from affiliates 194171768.63 227004893.87
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 10400000.00
Credit impairment loss -98397398.38 -1935337.47
Impairment loss of assets -2889394.16
Assets disposal income 478663.58 3017370.44
III. Operational profit（“-”for loss） 2344093955.97 3166657605.30
Add ：Non-operational income 10048941.28 17975495.18
Less: Non-operating expense 12263294.52 22483385.64
IV. Total profit(“-”for loss) 2341879602.73 3162149714.84
Less：Income tax expenses 547291352.09 735365014.56
V. Net profit 1794588250.64 2426784700.28
(I) Classification by business continuity
1.Net continuing operating profit 1794588250.64 2426784700.28
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent
1277069521.901700406981.99
company
2.Minority shareholders’ equity 517518728.74 726377718.29
VI. Net after-tax of other comprehensive income -21543809.67 -110718411.31
Net of profit of other comprehensive income attribut -21543809.67 -110718411.31
able to owners of the parent company.（I）Other comprehensive income items that will
not be reclassified into gains/losses in the subsequent -14349348.86 -120434499.12
accounting period
1.Re-
measurement of defined benefit plans of changes in n
942022 Annual Report
Items 2022 2021
et debt or net assets
2.Other comprehensive income under the equity met
hod investee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other
-14349348.86-120434499.12
equity instruments
4. Changes in the fair value of the company’s credit
risks
5.Other（II）
Other comprehensive income that will be reclassified -7194460.81 9716087.81
into profit or loss.
1.Other comprehensive income under the equity met -7194460.81 9716087.81
hod investee 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 statem
ents
7.Other
Net of profit of other comprehensive income attribut
able to Minority shareholders’ equity
VII. Total comprehensive income 1773044440.97 2316066288.97
Total comprehensive income attributable to the
1255525712.231589688570.68
owner of the parent company
Total comprehensive income attributable minority
517518728.74726377718.29
shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.61 0.81
(II)Diluted earnings per share 0.61 0.81
The current business combination under common control the net profits of the combined party before achieved
net profit of RMB 0.00 last period the combined party realized RMB0.00.Legal Representative: Miao Deshan
General Manager：Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Zhou Fang
4. Income statement of the Parent Company
In RMB
952022 Annual Report
Items 2022 2021
I. Income from the key business 1310779669.18 1469364434.37
Incl：Business cost 589634400.70 718634183.97
Business tax and surcharge 7388300.22 8211382.64
Sales expense
Administrative expense 115967177.07 117865388.31
R & D expense 11081898.00 6788937.00
Financial expenses 191962721.38 235894975.56
Including：Interest expenses 229477883.09 274934433.28
Interest income 37446280.48 39948340.40
Add：Other income 4058931.45 4070892.76
Investment gain（“-”for loss） 1173330227.52 1316869007.46
Including: investment gains from affiliates 183901559.85 221639163.75
Financial assets measured at amortized cost cease to
be recognized as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss 93582.00
Impairment loss of assets -2889394.16
Assets disposal income 478663.58
II. Operational profit（“-”for loss） 1572612994.36 1700113654.95
Add ：Non-operational income 1611971.54 1683906.22
Less：Non -operational expenses 1417002.95 13481250.02
III. Total profit(“-”for loss) 1572807962.95 1688316311.15
Less：Income tax expenses 95996578.31 103909700.85
IV. Net profit 1476811384.64 1584406610.30
1.Net continuing operating profit 1476811384.64 1584406610.30
2.Termination of operating net profit
V. Net after-tax of other comprehensive income -21543809.67 -110718411.31
（I）Other comprehensive income items that will
not be reclassified into gains/losses in the subsequent -14349348.86 -120434499.12
accounting period
1.Re-
measurement of defined benefit plans of changes in n
et debt or net assets
2.Other comprehensive income under the equity met
hod investee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other
-14349348.86-120434499.12
equity instruments
4. Changes in the fair value of the company’s credit
risks
5.Other
-7194460.819716087.81
962022 Annual Report
Items 2022 2021
(II)Other comprehensive income that will be reclassif
ied into profit or loss
1.Other comprehensive income under the equity met -7194460.81 9716087.81
hod investee 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 statem
ents
7.Other
VI. Total comprehensive income 1455267574.97 1473688198.99
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items 2022 2021
I.Cash flows from operating activities
Cash received from sales of goods or
4277130557.355447910740.15
rending of services
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
972022 Annual Report
Items 2022 2021
Other cash received from business
120557326.45126417264.96
operation
Sub-total of cash inflow 4397687883.80 5574328005.11
Cash paid for purchasing of merchandise
342864874.07417377507.94
and services
Net increase of client trade and advance
Net increase of savings in central bank
and brother company
Cash paid for original contract claim
Net increase in financial assets held for
trading purposes
Net increase for Outgoing call loan
Cash paid for interest processing fee and
commission
Cash paid to staffs or paid for staffs 479860302.18 490684230.89
Taxes paid 695593923.86 901811223.79
Other cash paid for business activities 127342225.31 94710321.33
Sub-total of cash outflow from business
1645661325.421904583283.95
activities
Net cash generated from /used in
2752026558.383669744721.16
operating activities
II. Cash flow generated by investing
Cash received from investment retrieving 45000000.00
Cash received as investment gains 168700001.50 174741274.88
Net cash retrieved from disposal of fixed
assets intangible assets and other long- 805831.00 4787323.86
term assets
Net cash received from disposal of
28514496.27
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to investment
198020328.77224528598.74
activities
Cash paid for construction of fixed assets
intangible assets and other long-term 875179014.01 513663936.74
assets
Cash paid as investment 321341000.00 134650000.00
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
1196520014.01648313936.74
investment activities
Net cash flow generated by investment -998499685.24 -423785338.00
982022 Annual Report
Items 2022 2021
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment
from minor shareholders
Cash received as loans 2320000000.00 2124930000.00
Other financing –related cash received 557350200.00 140145195.50
Sub-total of cash inflow from financing
2877350200.002265075195.50
activities
Cash to repay debts 1294413150.00 2503707200.00
Cash paid as dividend profit or interests 1993666552.33 1667198772.33
Including: Dividend and profit paid by
556851982.19755677776.30
subsidiaries to minor shareholders
Other cash paid for financing activities 14280453.65 1230750884.93
Sub-total of cash outflow due to financing
3302360155.985401656857.26
activities
Net cash flow generated by financing -425009955.98 -3136581661.76
IV. Influence of exchange rate alternation
988123.62-371334.74
on cash and cash equivalents
V.Net increase of cash and cash
1329505040.78109006386.66
equivalents
Add: balance of cash and cash equivalents
2955183190.552846176803.89
at the beginning of term
VI ..Balance of cash and cash equivalents
4284688231.332955183190.55
at the end of term
6. Cash Flow Statement of the Parent Company
In RMB
Items 2022 2021
I.Cash flows from operating activities
Cash received from sales of goods or
1347316010.131512002307.36
rending of services
Tax returned
Other cash received from business
47431112.11139579001.22
operation
Sub-total of cash inflow 1394747122.24 1651581308.58
Cash paid for purchasing of merchandise
74042300.6585431635.37
and services
Cash paid to staffs or paid for staffs 155280659.59 156876478.03
Taxes paid 49667582.04 55685419.35
Other cash paid for business activities 1856029086.90 89308303.12
Sub-total of cash outflow from business
2135019629.18387301835.87
activities
Net cash generated from /used in -740272506.94 1264279472.71
992022 Annual Report
Items 2022 2021
operating activities
II. Cash flow generated by investing
Cash received from investment retrieving 328527584.98 310000000.00
Cash received as investment gains 1121551007.37 1222810553.86
Net cash retrieved from disposal of fixed
assets intangible assets and other long- 566983.00 1359500.00
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
1450645575.351534170053.86
investment activities
Cash paid for construction of fixed assets
intangible assets and other long-term 155607960.52 145749738.08
assets
Cash paid as investment 344250000.00 1380489292.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to
499857960.521526239030.08
investment activities
Net cash flow generated by investment 950787614.83 7931023.78
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 1890000000.00 2124930000.00
Other financing –related ash received
Sub-total of cash inflow from financing
1890000000.002124930000.00
activities
Cash to repay debts 726743150.00 2422947200.00
Cash paid as dividend profit or interests 1408387271.32 886140438.61
Other cash paid for financing activities 14173175.65 8609914.93
Sub-total of cash outflow due to
2149303596.973317697553.54
financing activities
Net cash flow generated by financing -259303596.97 -1192767553.54
IV. Influence of exchange rate alternation
988123.62-371334.74
on cash and cash equivalents
V.Net increase of cash and cash
-47800365.4679071608.21
equivalents
Add: balance of cash and cash equivalents
1859614927.301780543319.09
at the beginning of term
VI ..Balance of cash and cash equivalents
1811814561.841859614927.30
at the end of term
1002022 Annual Report
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
2022
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
Com
: Other Minor Total of
Items Speciali mon
Share Prefer Capital Shar Comprehe Surplus Retained Oth shareholder owners’
Sustain Oth zed risk Subtotal
Capital red reserves es in nsive reserves profit er s’ equity equity
able er reserve provis
stock stoc Income
debt ion
k
I.Balance
at the end 20908061 7134605 1921774 12253753 47606185 89824379 23385511 113209891
of last 26.00 18.49 66.34 30.56 43.78 85.17 72.96 58.13
year
II.Balance
at the
209080617134605192177412253753476061858982437923385511113209891
beginning
26.0018.4966.3430.5643.7885.1772.9658.13
of current
year
III.Chang
---
ed in the 2967303 14768113 93439258. 47907603.5
215438062371108.45531655.
current 8.54 8.46 95 0
9.673845
year
（1）
Total -
127706951255525751751872177304444
comprehe 2154380
21.9012.238.740.97
nsive 9.67
income（III） - - - -14768113
Profit 13394406 11917594 59115198 178291147
8.46
allotment 30.28 91.82 2.19 4.01
1.Providin 14768113 -
1012022 Annual Report
g of 8.46 14768113
surplus 8.46
reserves
3．Allot
ment to
the - - - -
owners 11917594 11917594 59115198 178291147
(or 91.82 91.82 2.19 4.01
sharehold
ers)（VI） 2967303 29673038. 28101598. 57774636.5
Other 8.54 54 00 4
IV.Balance at 20908061 7431335 1706336 13730564 46982474 90758772 22930195 113688967
the end of 26.00 57.03 56.67 69.02 35.40 44.12 17.51 61.63
this term
1022022 Annual Report
IV. Balance at the end of this term
In RMB
2021
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
: Com
Other Minor Total of
Items Shar Special mon
Share Prefer Capital Comprehe Surplus Retained Oth shareholder owners’Sustain Oth es ized risk Subtotal
Capital red reserves nsive reserves profit er s’ equity equity
able er in reserve provis
stock Income
debt stoc ion
k
I.Balance
at the end 20908061 6459692 3028958 11677859 37256793 79331364 22991800 10232316
26.0010.4877.6565.6319.3599.1185.17584.28
of last year
Add:
Chang
e of
546190.04546190.04546190.04
accou
nting
policy
II.Balance
at the
beginning 20908061 6459692 3028958 11677859 37262255 79336826 22991800 10232862
26.0010.4877.6565.6309.3989.1585.17774.32
of current
year
III.Change
-
d in the 6749130 57589364. 10343930 10487552 39371087. 10881263
1107184
current 8.01 93 34.39 96.02 79 83.81
11.31
year
（1）Total - 17004069 15896885 72637771 23160662
comprehen 1107184 81.99 70.68 8.29 88.97
1032022 Annual Report
sive 11.31
income（III） - - - -
57589364.
Profit 66601394 60842458 75567777 13641023
93
allotment 7.60 2.67 6.30 58.97
1.Providin
-
g of 57589364.
57589364.
surplus 93
93
reserves
3．Allotm
ent to the - - - -
owners (or 60842458 60842458 75567777 13641023
shareholder 2.67 2.67 6.30 58.97
s)（VI） 6749130 67491308. 68671145. 136162453
Other 8.01 01 80 .81
IV.Balance at 20908061 7134605 1921774 12253753 47606185 89824379 23385511 11320989
the end of 26.00 18.49 66.34 30.56 43.78 85.17 72.96 158.13
this term
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
I n RMB
2022
Other Equity instrument Less:
Other
Items Capital Share Specialize Othe Total of
Share capital Preferre Othe Comprehensiv Surplus reserves Retained profit
Sustainabl
d stock r reserves s in d reserve r owners’ equity
e debt e Incomestock
I.Balance at
2090806126.0934851285.5192177466.31045403063.04586482016.18849719956.9
the end of last
014005
year
II.Balance at 2090806126.0 934851285.5 192177466.3 1045403063.0 4586482016.1 8849719956.9
the beginning 0 1 4 0 0 5
of current
1042022 Annual Report
year
III.Changed
-
in the current 57008.18 147681138.46 137370754.36 263565091.33
21543809.67
year
（I）Total
-1476811384.61455267574.9
comprehensiv
21543809.6747
e income
--（III）Profit
147681138.461339440630.21191759491.8
allotment
82
1.Providing
of surplus 147681138.46 -147681138.46
reserves
2．Allotment
--
to the owners
1191759491.81191759491.8
(or
22
shareholders)（VI）Other 57008.18 57008.18
IV. Balance
at the end of 2090806126.0 934908293.6 170633656.6 1193084201.4 4723852770.4 9113285048.2
097668
this term
1052022 Annual Report
Amount in last year
In RMB
2021
Other Equity instrument Less:
Other
Items Capital Share Specialize Surplus Othe Total of
Share Capital Preferre Othe Comprehensiv Retained profit
Sustainabl reserves s in d reserve reserves r owners’ equity
d stock r
e debt e Incomestock
I.Balance at the 2090806126.0 938969546.7 302895877.6 3667543163.3 7988028411.8
987813698.07
end of last year 0 9 5 6 7
Add: Change
of
546190.04546190.04
accountin
g policy
II.Balance at
the beginning 2090806126.0 938969546.7 302895877.6 3668089353.4 7988574601.9987813698.07
09501
of current year
III.Changed in -
-4118261.28110718411.357589364.93918392662.70861145355.04
the current year 1
（I）Total -
1584406610.31473688198.9
comprehensive 110718411.3
09
income 1（III）Profit - -
57589364.93
allotment 666013947.60 608424582.67
1.Providing of
surplus 57589364.93 -57589364.93
reserves
--
3．Other 608424582.67 608424582.67（VI）Other -4118261.28 -4118261.28
IV. Balance at 2090806126.0 934851285.5 192177466.3 1045403063.0 4586482016.1 8849719956.9
the end of this 0 1 4 0 0 5
1062022 Annual Report
term
1072022 Annual Report
III. Company Profile
1. Basic information of the IPO and share capital of the company
1.The Company was established in February 1993 which was originally named as Guangdong Fokai
Expressway Co. Ltd. On June 30 1993 it was renamed as Guangdong Provincial Expressway Development
Co. Ltd. after reorganization pursuant to the approval of the Office of Joint Examination Group of
Experimental Units of Share Holding System with YLSB (1993)No. 68 document. The share capital structure
after reorganization is as follows:
Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang
Bridge Co. and Guangfo Expressway Co. Ltd. as of January 31 1993 confirmed by Guangdong State-owned
Asset Management Dept. i.e.RMB 418.2136 million was converted into 155.025 million shares. Guangdong
Expressway Co. invested cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal persons
invested cash of RMB 286.992 million to subscribe for 89.685 million shares. Staff of the Company invested
RMB 87.008 million to subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.
2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities
Regulatory Commission with YTG (1996) No. 67 document part of the shareholders of non-state-owned legal
person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co.Ltd. in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval
document and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document
the Company issued 135 million domestically listed foreign investment shares (B shares) to overseas investors
at the price of HKD 3.54 (equivalent to RMB 3.8) with the par value of each share being RMB 1 during June to
July 1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic
of China with (1996) WJMZYHZ No. 606 document the Company was approved to be a foreign-invested joint
stock company limited.
5． The Company distributed dividends and capitalized capital common reserve for the year 1996 in the
following manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common
reserve on 3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and
No. 487 document the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term
of “payable in full on application pro-rate placing and subject to refund” with the par value of each share being
RMB 1 in January 1998.
7． In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and
pursuant to the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99
and that of CSRC with ZJGSZ (2000) No. 98 the Company offered 3 Rights for every 10 shares of 764.256249
million shares at the price of RMB 11 per Right.73822250 ordinary shares were actually placed to all .
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH
(2000) No. 574 document the state-owned shares were transferred to Guangdong Communication Group Co.
Ltd. (Group Co.) for holding and management without compensation.
1082022 Annual Report
9.Pursuant to the approval of Shenzhen Stock Exchange 53.0205 million staff shares of the Company (132722
shares held by directors supervisors and senior executives are temporarily frozen) were listed on February 5
2001.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting the Company capitalized
capital common reserve into 419039249 shares on 5-for-10 basis with the total share capital as of the end of
2000 i.e. 838078499 shares as base. The date of stock right registration was May 21 2001. The ex-right date
was May 22 2001.
11．On March 8 2004As approved by China Securities Regulatory Commission by document Zheng-Jian-
Gong-Si-Zi [2003]No.3 the 45000000 non-negotiable foreign shares were placed in Shenzhen Stock
12. On December 21 2005 the Company's plan for share holding structure reform was voted through at the
shareholders' meeting concerning A shares. On January 26 2006 The Ministry of Commerce of PRC issued
“The approval on share converting of Guangdong Provincial Expressway Development Co. Ltd.” to approvethe share equity relocation and transformation. On October 9 2006 according to the “Circular aboutimplementing of share equity relocation and relative trading” issued by Shenzhen Stock Exchange the
abbreviation ID of the Company’s A shares was restored from “G-Expressway” “Expressway A”.Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to Parties
such as Guangdong Provincial Expressway Co. Ltd to Purchase Assets and Raise Matching Funds by
Guangdong Provincial Expressway Development Co. Ltd in June 2016 the company issued 33355263 shares
and paid RMB 803.50 million to Guangdong Provincial Expressway Co. Ltd for purchasing the 25% stake of
Guangdong Provincial Fokai Expressway Co. Ltd held by Guangdong Provincial Expressway Co. Ltd; and
issued 466325020 shares to Guangdong Provincial Highway Construction Co. Ltd for purchasing the 100%
stake of Guangzhou Guangzhu Traffic Investment Management Co. Ltd held by Guangdong Provincial
Highway Construction Co. Ltd. On June 21 2016 the company directionally issued 334008095 A-shares to
Yadong Fuxing Yalian Investment Co.Ltd Tibet Yinyue Investment Management Co.Ltd and Guangfa
Securities Co.Ltd. The issuance of shares have been registered on July 7 2016 the new shares will be listed on
July 8 2016.
2. Company's registered place and headquarters address
Company name：Guangdong Provincial Expressway Development Co. Ltd.Registration placeNo.85 Baiyun Road Yuexiu District Guangzhou.Headquarters Office ：45-46/F Litong Plaza No.32 Zhujiang East Road Zhujiang New City Tihe Disrtict
Guangzhou
3. Business nature and main business activities
Industry and main products of the company: highway management and maintenance.General business items: investment construction charging maintenance and service management of
expressways grade roads and bridges; Automobile rescue service maintenance and cleaning; Parking lot charges;
Design production release and agency of all kinds of advertisements at home and abroad; Land development
along the highway; Warehousing business; Intelligent transportation technology research and development and
service; Equity investment management and consultation. (Projects that must be approved according to law can
be operated only after being approved by relevant departments).The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai ExpresswayJingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangzhou
1092022 Annual Report
Guanghui Expressway Co. Ltd.. Guangdong Jiangzhong Expressway Co.Ltd. Zhaoqing Yuezhao Expressway
Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Technology
Petty Loan Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd Hunan Lianzhi
Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd. and Shenzhen Garage Electric
Pile Technology Co. Ltd.
4. Scope and changes of consolidated financial statements in the current period
(1) Scope of current consolidated financial statements
The consolidated scope of the current financial statements invovles Guangdong Expressway Technology
Investment Co. Ltd. Yuegao Capital Holding (Guangzhou) Co. Ltd. its holding subsidiaries Guangfo
Expressway Co. Ltd. Jingzhu Expressway Guangzhu Section Co. Ltd. and Guanghui Expressway Co. Ltd..
(2) Changes in the scope of consolidated financial statements in the current period
In the current period the 100% equity of Guangdong Expressway Technology Investment Co. Ltd-a
wholly-owned subsidiary-was transferred to Guangdong Litong Technology Investment Co. Ltd and the equity
delivery date was March 29 2022. Therefore it will no longer be included in the scope of the consolidated
financial statements at the end of the current period.
5. Approval and submission date of financial report
This financial report was approved by the Board of Directors of the Company on March 20 2023.IV. Basis for the preparation of financial statements
1.Preparation basis
The financial statements of the Company have been prepared on basis of going concern in conformity with
Chinese Accounting Standards for Business Enterprises and the Accounting Systems for Business Enterprises
issued by the Ministry of Finance of People’s Republic of China (Ministry of Finance issued order No.33 the
Ministry of Finance revised order No.76) on February 15 2006 and revised Accounting Standards (order 42 of
the Ministry of Finance) and Compilation Rules for Information Disclosure by Companies Offering Securities to
the Public No.15 – General Provisions on Financial Reports (2014 Revision) issued by the China Securities
Regulatory Commission (CSRC).According to the relevant accounting regulations in Chinese Accounting Standards for Business Enterprises
the Company has adopted the accrual basis of accounting. Held-for-sale non-current assets are measured at the
lower of its book value at its classification date and fair value minus expected disposal costs. Where assets are
impaired provisions for asset impairment are made in accordance with relevant requirements
2.Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will
cause material doubts as to the continuation capability of the Company.V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates are indicated as follows:
None
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company are recognized and measured in accordance with the regulations in
the Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial
position business result and cash flow of the Company. In addition the financial statements of the Company
1102022 Annual Report
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
1112022 Annual Report
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
1122022 Annual Report
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
1132022 Annual Report
income when the control right is lost except for other comprehensive income generated by the investee's re-
measurement of net liabilities or changes in net assets of the set income plan.The difference between the newly acquired long-term equity investment due to the purchase of minority
shares and the identifiable net assets share of subsidiaries calculated according to the increased shareholding ratio
and the difference between the disposal price obtained from partial disposal of equity investment in subsidiaries
and the net assets share of subsidiaries corresponding to the disposal of long-term equity investment are used to
adjust the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the
capital reserve is insufficient to offset the retained earnings will be adjusted.
(4) Processing of consolidated statements from step-by-step disposal of equity to loss of control rights
If the transactions that dispose of the equity investment in subsidiaries until the loss of control rights are of a
package transaction the transactions shall be treated as transactions that dispose of subsidiaries and lose control
rights; However the difference between the disposal price and the share of the subsidiary's net assets related to the
disposal investment before the loss of control right is recognized as other comprehensive income in the
consolidated financial statements which will be transferred to the current profit and loss when the control right is
lost except for other comprehensive income arising from the re-measurement of the net liabilities or changes in
net assets of the set income plan by the investee. If it is not a package transaction before the loss of control the
difference between the disposal price and the corresponding net assets continuously calculated by the subsidiary
from the purchase date will be adjusted to the capital reserve and if the capital reserve is insufficient to offset the
retained earnings will be adjusted; In case of loss of control right the accounting treatment shall be carried out
according to the above accounting policy when the control right over the original subsidiary is lost.
7.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand ready usable deposits and investments
having short holding term (normally will be due within three months from the day of purchase) with strong
liquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of
change.
8.Foreign Currency Transaction
(1) Foreign currency business
Foreign currency transactions of the Company are converted into the amount of bookkeeping base currency
according to the spot rate on the transaction date.On the balance sheet date foreign currency monetary items and foreign currency non-monetary items shall
be treated according to the following provisions: foreign currency monetary items shall be converted at the spot
rate on the balance sheet date. Exchange differences arising from the difference between the spot rate on the
balance sheet date and the spot rate at the time of initial recognition or the previous balance sheet date are
included in the current profits and losses; Foreign currency non-monetary items measured at historical cost are
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
1142022 Annual Report
When converting foreign currency financial statements the Company shall comply with the following
regulations: assets and liabilities in the balance sheet shall be converted at the spot rate on the balance sheet date
and other items of owner's equity except "undistributed profits" shall be converted at the spot rate at the time of
occurrence; The income and expense items in the income statement shall be converted at the spot rate on the
transaction date (or at the exchange rate determined by a systematic and reasonable method and similar to the spot
rate on the transaction date). The translation difference of foreign currency financial statements generated
according to the above translation is recognized as other comprehensive income. The conversion of comparative
financial statements shall be handled according to the above provisions.
9.Financial instruments
The Company recognizes the financial assets or liabilities when involved in financial instruments’
agreements.
（1）Classification recognition and measurement of financial assets
In accordance with the characteristics of business model for managing financial assets and the contractual
cash flow of financial assets the Company classifies financial assets into: financial assets measured in amortized
cost; financial assets measured at fair value and their's changes are included in other comprehensive income;
financial assets measured at fair value and their's changes are included in current profits and losses.The initial measurement of financial assets is calculated by using fair value. For financial assets measured at
fair value whose changes are included in current profits and losses relevant transaction costs are directly included
in current profits and losses; For other types of financial assets relevant transaction costs are included in the
initial recognition amount.* Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimed
at collecting the contractual cash flow and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements that is the cash flow generated on a specific date is only the
payment of principal and interest based on the amount of outstanding principal. For such financial assets the
Company adopts the method of real interest rate and makes subsequent measurement according to the cost of
amortization. The profits or losses resulting from amortization or impairment are included in current profits and
losses.* Financial assets measured at fair value and changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect the contractual cash flow
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures such financial assets at fair value and their changes are included in other
comprehensive gains but impairment losses or gains exchange gains and losses and interest income calculated
according to the actual interest rate method are included in current profits and losses.In addition the Company designated some non-trading equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive income. The Company includes the relevant
dividend income of such financial assets in current profits and losses and the changes in fair value in other
comprehensive gains. When the financial asset ceases to be recognized the accumulated gains or losses
previously included in other comprehensive gains shall be transferred into retained income from other
comprehensive income and not be included in current profit and loss.* Financial assets measured at fair value and changes included in current profits and losses
The Company includes the above-mentioned financial assets measured at amortized cost and those measured
at fair value and their's changes in financial assets other than financial assets of comprehensive income and
1152022 Annual Report
classifies them as financial assets measured at fair value and their's changes that are included in current profits and
losses. In addition the Company designates some financial assets as financial assets measured at fair value and
includes their changes in current profits and losses in order to eliminate or significantly reduce accounting
mismatches during initial recognition. In regard with such financial assets the Company adopts fair value for
subsequent measurement and includes changes in fair value into current profits and losses.
（2）Classification recognition and measurement of financial liabilities
The Group’s financial liabilities are on initial recognition classified into financial liabilities at fair value
through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss
relevant transaction costs are immediately recognized in profit or loss for the current period and transaction costs
relating to other financial liabilities are included in the initial recognition amounts.* Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial
recognition to be measured by the fair value follows the same criteria as the classification by which financial
assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to fair value. Except for hedging accounting changes in fair value are included in current
profits and losses.Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are
included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in
fair value caused by changes in the Company's own credit risk and when the liabilities are terminated the
changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the
cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The
amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and
losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial
liabilities will result in or expand the accounting mismatch in the profits and losses the Company shall include all
the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit
risk of the enterprise itself) into the current profits and losses.* Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition
or formed by its continuous involvement in the transferred financial asset financial liabilities and financial
guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost
measured at the amortized cost for subsequent measurement recognition has been stopped or amortization of the
profit or loss is included in the current profits and losses.
(3) Recognition basis and measurement methods for transfer of financial assets
Financial assets satisfying one of the following conditions shall be terminated and recognized: * The
contractual right to collect the cash flow of the financial asset is terminated; * The financial asset has been
transferred and almost all the risks and rewards in the ownership of the financial asset have been transferred to
the transferee; * The financial asset has been transferred although the enterprise neither transfers nor retains
almost all the risks and rewards in the ownership of the financial asset but it abandoned control of the financial
assets.In case that the enterprise does not transfer or retain almost all risks and rewards on financial assets
ownership nor waive to control these assets relevant financial assets shall be recognized in accordance with the
degree for continued involvement of financial assets transferred and relevant liabilities shall be recognized
1162022 Annual Report
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
1172022 Annual Report
occurred market transactions are made under fair conditions.￡¨ In can a financial instrument does not exist in
active markets its fair value shall be determined by the Company with assessment techniques. The value appraisal
techniques mainly include the prices adopted by the parties who are familiar with the condition in the latest
market transaction upon their own free will the current fair value obtained by referring to other financial
instruments of the same essential nature the cash flow capitalization method and the option pricing model etc. In
valuation the Company adopts valuation techniques that are applicable in the current situation and supported by
sufficient data and other information to select input values consistent with the characteristics of assets or liabilities
considered by market participants in the transactions of related assets or liabilities and give priority to the use of
relevant observable input values as far as possible. Unallowable values are used if the relevant observable input
values are not available or are not practicable.
（7）Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. The consideration received from issuing equity instruments net of transaction costs
are added to shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to
holders of equity instruments are deducted from shareholders’ equity.The dividends (including "interest" generated by the tools classified as equity instruments) distributed by the
Company's equity instruments during the period of their existence shall be treated as profit distribution.
10. Impairment of financial instruments
The Company requires to confirm that the financial assets lost by impairment are financial assets measured
by amortized cost investment in debt instruments and lease receivables which are measured at fair value and
whose changes are included in other comprehensive gains mainly including notes receivable accounts receivable
other receivables creditor's rights investment other creditor's rights investment and long-term receivables and etc.In addition provision for impairment and confirmation of credit impairment losses are also made for contract
assets and some financial guarantee contracts in accordance with the accounting policies described in this section.
(1) Method of confirming impairment provision
Based on anticipated credit loss the Company calculates impairment preparation and confirms credit
impairment loss according to the applicable anticipated credit loss measurement method (general method or
simplified method).Credit loss refers to the difference between the cash flow of all contracts discounted according to the
original real interest rate and the expected cash flow of all contracts receivable according to the contract that is
the present value of all cash shortages. Among them the Company discounts the financial assets purchased or
originated with credit impairment at the actual interest rate adjusted by credit.The general method of measuring anticipated credit loss is whether the credit risk of the Company's
financial assets (including other applicable items such as contract assets similarly hereinafter) has increased
significantly since the initial recognition on each balance sheet day. If the credit risk has increased significantly
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.
1182022 Annual Report
(2) Criteria for judging whether credit risk has increased significantly since the initial recognition
If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly
higher than the probability of default during the estimated duration of the initial recognition the credit risk of the
financial asset is significantly increased. Except for special circumstances the Company uses the change of
default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to
determine whether the credit risk has increased significantly since the initial recognition.
(3) A portfolio-based approach to assessing expected credit risk
The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk such as
the related party's receivables the receivables in dispute with the other party or involving litigation and arbitration
and receivables that has been proved that the debtor may not be able to fulfill the obligation of repayment etc.In addition to the financial assets that assess credit risk individually the Company shall divide financial
assets into different groups based on common risk characteristics and assess credit risk on the basis of portfolio.
(4) Accounting treatment of impairment of financial assets
At the end of the duration the Company shall calculate the anticipated credit losses of various financial
assets. If the anticipated credit losses are greater than the book value of its current impairment provision the
difference is deemed as impairment loss. If the balance is less than the book value of the current impairment
provision the difference is deemed as impairment profit.
(5) Method of determining credit losses of various financial assets
* Receivable Account and Contract assets
In regard to receivables without significant financing components the Company shall measure loss
preparation according to the amount of anticipated credit loss equivalent to the entire duration.In regard to accounts receivable with significant financing components the Company shall choose to
measure loss preparation according to the amount equivalent to the expected credit loss within the duration all the
time.In addition to the accounts receivable that assesses the credit risk individually receivables are divided into
different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1：Aging protfolio This portfolio is characterized by the aging of receivables as a credit risk.Portfolio 2 ： Quality Guarantee This portfolio is the contract quality guarantee fund and other funds
portfolio
For the above portfolio 1 the measurement method of bad debts reserve is the aging analysis method
specifically as follows：
Aging Proportion （%）
Within 1 year（Including 1 year） 0
1-2 years 10
2-3 years 30
3-4 years 50
4-5 years 90
Over 5 years 100
For the guarantee fund portfolio of portfolio 2 no provision for bad debts shall be made unless there is
objective evidence that the money cannot be recovered according to the original terms of accounts receivable and
contract assets.* Other receivable
1192022 Annual Report
The Company has measured the impairment loss based on the amount of expected credit losses in the next
12 months or the entire duration based on whether the credit risk of other receivables has increased significantly
since the initial recognition. In addition to the other accounts receivable which assesses the credit risk individually
they are divided into different portfolios based on their credit risk characteristics:
Items Basis for determining combination:
Protfolio 1 This portfolio is a collection of various deposits advances pledges and other
receivables in daily activities.Protfolio 2 This portfolio is a reserve fund borrowed by employees in their daily business
activities.Protfolio 3 Other receivables other than the above portfolio.Combination of deposit quality assurance fund and deposit and reserve fund combination except for
objective evidence that the Group will not be able to recover the amount according to the original terms of
receivables will not normally be accrued for bad debt reserves. The measurement method of bad debt reserves for
other combinations is aging analysis and the accrual proportion is the same as accounts receivable.* Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost etc. The
Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months
or the entire duration based on whether the credit risk has increased significantly since the initial recognition. The
Company adopts the method of evaluating credit risk with individual assets for creditor's rights investment.
11.Inventory
1.Investories class:
The company’s stocks can be classified as: raw materials etc.
2. Valuation method of inventory issued :The company calculates the prices of its inventories according to the
weighted averages method or the first-in first-out method.
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.
12.Contract assets and Contract liabilities
In the contract between the Company and customers the Company has the right to charge the contract price
for the goods and related services that have been transferred to customers and meanwhile undertake the
performance obligation of transferring the goods or services to customers. When the customer actually pays the
contract consideration or the enterprise has transferred the goods or services to the customer before the
consideration becomes due and payable the right to receive the consideration due to the transferred goods or
services shall be listed as contract assets and recognized as accounts receivable or long-term receivables when the
unconditional right of collection is obtained. `
1202022 Annual Report
In the contract between the Company and customers the Company has the right to receive the contract
consideration before transferring the goods or services to customers and in the meantime list the obligation to
transfer goods or services to customers due to the consideration received or receivable from customers as
contractual liabilities. When the Company fulfills its obligation to transfer goods or provide services to customers
the contractual liabilities are recognized as income.The Company shall list the contract assets and liabilities under the same contract in net amount.
13. Long-term equity investments
(1) Initial measurement
The Company makes initial measurement of long-term equity investment in the following two situations:
* The initial investment cost of long-term equity investment formed by business combination shall be
determined in accordance with the following provisions:
A. In a business combination under the same control if the combining party pays cash transfers non-cash
assets or assumes debts as the combination consideration the share of the book value of the owner's equity of the
merged party in the consolidated financial statements of the final controlling party shall be taken as the initial
investment cost of long-term equity investment on the combination date. The difference between the initial
investment cost of long-term equity investment and the cash paid the transferred non-cash assets and the book
value of the debts undertaken is adopted to adjust the capital reserve; If the capital reserve is insufficient to offset
the retained earnings shall be adjusted. All directly related expenses incurred for business combination including
audit fees evaluation fees legal service fees etc. are included in the current profits and losses when they occur.B. In the business combination not under the same control the Company determines the combination cost by
distinguishing the following situations:
a) For business combination realized by one exchange transaction the cost of combination is the fair value of
assets paid liabilities incurred or assumed in order to gain control over the purchased party on the purchase date;
b) For business combination realized step by step through multiple exchange transactions the sum of the
book value of the equity investment of the purchased party held before the purchase date and the new investment
cost on the purchase date shall be taken as the initial investment cost of the investment;
c) Intermediary expenses such as auditing legal services evaluation and consultation and other related
management expenses incurred for business combination are included in the current profits and losses when they
occur;
d) If future events that may affect the combination cost are agreed in the combination contract or agreement
if it is estimated that the future events are likely to occur on the purchase date and the amount of impact on the
combination cost can be reliably measured they will be included in the combination cost.* Except for the long-term equity investment formed by business combination the initial investment cost of
long-term equity investment obtained by other means shall be determined in accordance with the following
provisions:
A. For the long-term equity investment obtained by cash payment the actual purchase price shall be taken as
the initial investment cost. Initial investment cost includes expenses taxes and other necessary expenditures
directly related to obtaining long-term equity investment.B. For long-term equity investment obtained through exchange of non-monetary assets the initial investment
cost shall be determined according to Accounting Standards for Business Enterprises No.7-Exchange of Non-
monetary Assets.C. For long-term equity investment obtained through debt restructuring the initial investment cost shall be
determined according to Accounting Standards for Business Enterprises No.12-Debt Restructuring.* No matter how the long-term equity investment is obtained when the investment is obtained the cash
1212022 Annual Report
dividends or profits included in the paid consideration that have been declared but not yet issued by the investee
are separately accounted as receivable items which does not constitute the initial investment cost of obtaining the
long-term equity investment.
(2) Subsequent measurement
Long-term equity investment that can be controlled by the investee shall be accounted by the cost method in
individual financial statements. Long-term equity investments that have joint control or significant influence on
the investee shall be accounted by equity method.* Long-term equity investment accounted by cost method is priced according to the initial investment cost。
Adjust the cost of long-term equity investment by adding or recovering investment. Cash dividends or profits
declared and distributed by the investee shall be recognized as current investment income.If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee the initial investment cost of long-term equity investment
shall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value share
of the identifiable net assets of the investee at the time of investment the difference shall be included in the
current profits and losses and the cost of long-term equity investment shall be adjusted at the same time.After obtaining the long-term equity investment the investment income and other comprehensive income
shall be recognized respectively according to the share of the net profit and loss and other comprehensive income
realized by the invested unit and the book value of the long-term equity investment shall be adjusted at the same
time; According to the profit or cash dividend declared and distributed by the investee the book value of long-
term equity investment shall be reduced accordingly; The book value of the long-term equity investment is
adjusted and included in the owner's equity for other changes in the owner's equity of the investee except net
profit and loss other comprehensive income and profit distribution. When recognizing the share of the net profit
and loss of the investee the net profit of the investee is recognized after adjustment based on the fair value of the
identifiable net assets of the investee at the time of obtaining the investment. If the accounting policies and
accounting periods adopted by the investee are inconsistent with those of the Company the financial statements of
the investee shall be adjusted according to the accounting policies and accounting periods of the Company and
the investment income and other comprehensive income shall be recognized accordingly. The net loss incurred by
the investee is recognized to be written down to zero by the book value of long-term equity investment and other
long-term interests that substantially constitute the net investment of the investee unless the Company is obligated
to bear additional losses. If the investee achieves net profit in the future the Company will resume the recognition
of the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharing
amount.When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee the
unrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculated
according to the proportion that should be enjoyed and the part attributable to the Company shall be offset and
the investment income shall be recognized on this basis. Unrealized internal transaction losses between the
Company and the investee are asset impairment losses which shall be fully recognized.Part of the company's equity investment in affiliated enterprises is indirectly held through venture capital
institutions mutual funds trust companies or similar entities including investment-linked insurance funds.Regardless of whether the above entities have a significant impact on this part of investment the Company
chooses to measure this part of indirect investment at fair value and its change is included in profit or loss in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments and the rest is accounted for by equity method.* When the Company disposes of long-term equity investment the difference between its book value and
1222022 Annual Report
the actual purchase price shall be included in the current profits and losses. For long-term equity investment
accounted by equity method when disposing of the investment it adopts the same basis as the investee's direct
disposal of related assets or liabilities and accounts for the part originally included in other comprehensive
income according to the corresponding proportion.
(3) Basis to determine joint control over and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with the relevant agreement and
the relevant activities of such arrangement must be unanimously agreed by the participants who share the control
rights before making decisions. Significant influence means that the investor has the right to participate in the
decision-making on the financial and operating policies of the investee but cannot control or jointly control the
formulation of these policies with other parties. When determining whether the investee can be controlled or exert
significant influence the potential voting rights factors such as current convertible bonds and current executable
warrants of the investee held by the Company and other parties shall be considered at the same time.
14.Investment Property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property is held to earn rentals or for capital appreciation or for both. Investment property
includes leased or ready to transfer after capital appreciation land use rights and leased buildings.
（1）The measurement mode of investment property
* Depreciation or amortization method
The estimated service life net salvage value rate and annual depreciation (amortization) rate of investment
real estate are listed as follows:
Type Estimated service lifeEstimated net salvage valueAnnual depreciation
(years) rate (amortization) rate
Land use right Remaining useful life
Houses and buildings 20-30 years 3%-10% 3%-4.85%
* Impairment test method and accounting treatment method
See "v. 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.
15.Fixed assets
（1）Confirmation conditions
The Company's fixed assets refer to tangible assets held for the production of commodities provision of
labor services leasing or operation management which have a service life of more than one year and whose
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economic benefits are likely to be included into the Company and whose costs can be reliably measured.
1）The classification of the fixed asset
The Company's fixed assets include roads and bridges houses and buildings machinery and equipment
electronic equipment transportation tools and other equipment.
2）Depreciation method
Expected useful Residual rate Annual depreciation
Type Depreciation method
life(Year) （%） rate(%)
Guangfo Expressway Working flow basis 28 years 0%
Fokai Expressway-Xiebian to
Working flow basis 40 years 0%
Sanbao Section
Fokai Expressway-Sanbao to
Working flow basis 47.5 years 0%
Shuikou Section
Jingzhu Expressway Guangzhu
Working flow basis 30 years 0%
Section
Guanghui Expressway Co. Ltd. Working flow basis 23 years 0%
House Building The straight-line
20-30 years 3%-5% 3.17%-4.85%
method
The straight-line
Machine Equipment 3-10 years 3%-5% 9.50%-32.33%
method
The straight-line
Transportation Equipment 5-8 years 3%-5% 11.88%-19.40%
method
The straight-line
Other 5 years 3%-5% 19.00%-19.40%
method
（2）Depreciation for Fixed assets
For the fixed assets formed by special reserve expenditure the special reserve shall be offset according to the
cost to form the fixed assets and the accumulated depreciation of the same amount shall be recognized. The fixed
assets will not be depreciated in future periods.According to the nature and usage of fixed assets the Company determines the service life and estimated net
salvage value of fixed assets. At the end of the year the service life estimated net salvage value and depreciation
method of fixed assets shall be rechecked and if there is any difference with the original estimate corresponding
adjustments shall be made.The useful life residual value rate and annual depreciation rate of various fixed assets are listed as follows:
Annual
Depreciation Expected useful Residual rate
Type depreciation
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%
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basis
Working flow 30 years
Jingzhu Expressway Guangzhu Section 0%
basis
Working flow 23 years
Guanghui Expressway Co. Ltd. 0%
basis
House Building The straight- 20-30 years
3%-5%3.17%-4.85%
line method
The straight- 3-10 years
Machine Equipment 3%-5% 9.50%-32.33%
line method
The straight- 5-8 years
Transportation Equipment 3%-5% 11.88%-19.40%
line method
The straight- 5 years
Other 3%-5% 19.00%-19.40%
line method
（3）Recognition basis valuation and depreciation method for financing leased fixed assets
16.Construction-in process
The construction in progress of the Company refers to the plant equipment and other fixed assets under
construction which are accounted for in detail according to the project and recorded according to the actual cost
including direct construction and installation costs and borrowing costs that meet the capitalization conditions.When the construction in progress reaches the scheduled usable state it will be carried over to fixed assets by
temporary estimation stop interest capitalization and start to accrue depreciation according to the determined
depreciation method of fixed assets. After the project is completed and final accounts are made the original
estimated amount will be adjusted according to the amount of final accounts but the original accrued depreciation
amount will not be adjusted.
17.Borrowing cost
(1) Recognition principle and capitalization period of borrowing cost capitalization
Borrowing costs incurred by the Company can be directly attributed to the purchase construction or
production of assets that meet the capitalization conditions and shall be capitalized when the following conditions
are met at the same time and included in the relevant asset costs:
* Production and expenditure have occurred;
* Borrowing costs have already occurred;
* The purchase construction or production activities required to make the assets reach the intended usable
or saleable state have started.Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are
abnormally interrupted in the process of purchase construction or production and the interruption time
continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as
expenses and included in the current profits and losses until the purchase and construction of assets or the
resumption of production activities. If the interruption is a necessary procedure for the purchased built or
produced assets that meet the capitalization conditions to reach the intended usable or saleable state the
capitalization of borrowing costs will continue.Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased built
1252022 Annual Report
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.
18.Intangible assets
1) Pricing method useful life and impairment test
The Company recognizes the identifiable non-monetary assets owned or controlled by the enterprise as
intangible assets which have no physical form and the estimated future economic benefits related to the assets
are likely to flow into the enterprise and the cost of the assets can be reliably measured.The intangible assets of the Company are recorded according to the amount actually paid or the determined
value.
(1) If the purchase price of intangible assets exceeds the normal credit conditions which is of financing
nature in essence the cost of intangible assets is determined based on the present value of the purchase price. The
difference between the actual paid price and the present value of the purchase price shall be included in the
current profits and losses within the credit period except that it should be capitalized according to the regulations.
(2) The intangible assets invested by investors shall be taken as the cost according to the value agreed in the
investment contract or agreement unless the value agreed in the contract or agreement is unfair.
2) Accounting policy for internal research and development expenditure
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.
1262022 Annual Report
Intangible assets with limited service life of the Company shall be amortized on average within the service
life since the intangible assets are available for use. Intangible assets with uncertain service life are not amortized.The amortization amount of intangible assets is the amount after deducting the estimated salvage value from its
cost. For intangible assets for which impairment provision has been made the accumulated amount of impairment
provision for intangible assets has to be deducted.The amortization period of intangible assets with limited service life is as follows:
Type Amortization period
Land use right Remaining useful life
Software 3-5 years
Toll road franchises Operating period for residual charges
19. Long-term amortizable expenses
Long-term deferred expenses are recorded according to the actual amount incurred and are amortized
equally in installments during the benefit period or within the prescribed period. If the long-term prepaid expense
item cannot benefit the future accounting period the amortized value of the item that has not been amortized will
be transferred to the current profits and losses.
20. Employee Benefits
Employee compensation refers to various forms of remuneration or compensation given by the Company for
obtaining services provided by employees or dissolving labor relations. Employee compensation includes short-
term salary post-employment benefits dismissal benefits and other long-term employee benefits. Benefits
provided by the Company to spouses children dependents survivors of deceased employees and other
beneficiaries of employees are also employee compensation.
（1）Accounting methods of short-term benefits
During the accounting period when employees provide services the Company recognizes the actual short-term
salary as a liability which is included in the current profits and losses except that other accounting standards
require or allow it to be included in the cost of assets.
(2) Accounting methods for post-employment benefits
The Company classifies the post-employment benefit plan into defined contribution plan and defined benefit
plans. Post-employment benefit plan refers to the agreement reached between the Company and employees on
post-employment benefits or the rules or measures formulated by the Company to provide post-employment
benefits to employees among which the set deposit plan refers to the post-employment welfare plan in which the
Company no longer undertakes further payment obligations after paying a fixed fee to an independent fund;
Defined benefit plans refers to the post-employment benefit plan except the set-up deposit plan.
(3) Accounting Treatment Method of Demission Welfare
If the Company provides dismissal benefits to employees the employee compensation liabilities arising from
the dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: when
the company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relations
plan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganization
involving the payment of dismissal benefits.
（4）Other long-term employee benefits
If other long-term employee benefits provided by the Company to employees meet the conditions of the set
deposit plan they shall be handled according to the accounting policies of the set deposit plan mentioned above;
Otherwise the net liabilities or net assets of other long-term employee benefits shall be recognized and measured
1272022 Annual Report
in accordance with the accounting policies of defined benefit plans mentioned above.
21.Estimated liabilities
(1) Recognition criteria of estimated liabilities
If the obligations related to contingencies stipulated by the Company meet the following conditions at the
same time they are recognized as estimated liabilities:
* The obligations are the current obligations undertaken by the enterprise;
* Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;
* The amount of the obligations can be measured reliably.
(2) Measurement method of estimated liabilities
Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill
relevant current obligations. There is a continuous range of required expenditure and the possibility of occurrence
of various results in this range is the same and the best estimate is determined according to the intermediate value
in this range. In other cases the best estimates are treated as follows:
* Contingencies involving a single item shall be determined according to the most probable amount.* Contingencies involving multiple items shall be calculated and determined according to various possible
results and relevant probabilities.When determining the best estimate the risk uncertainty and time value of money related to contingencies
shall be considered comprehensively. If the time value of money has great influence the best estimate is
determined by discounting the related future cash outflow.If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be
compensated by a third party the compensation amount can be recognized as an asset only when it is basically
confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the
estimated liabilities.The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is
conclusive evidence that the book value cannot truly reflect the current best estimate the book value shall be
adjusted according to the current best estimate.
22. Revenues
Accounting policies adopted for income recognition and measurement
(1) Revenue recognition principle
Since the starting date of the contract the company shall evaluate the contract identifies each individual
performance obligation contained in and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point of time.The performance obligation is defined as fulfillment within a certain period of time if one of the following
conditions is met otherwise it is defined as fulfilled at a certain point in time: * The customer obtains and
consumes the economic benefits brought by the company's performance while the company performs the contract;
* The customer can control the goods under manufacturing or services during the company's performance; *
The goods or services produced during the company's performance have irreplaceable uses and the company has
the right to accumulate for the completed performances during the entire contract period.For obligations performed within a certain period of time the company recognizes revenue in accordance
with the performance progress in that period. If the performance progress cannot be reasonably determined and
the cost incurred is expected to be compensated the revenue shall be recognized according to the amount of the
1282022 Annual Report
cost incurred until the performance progress can be reasonably determined. For obligations performed at a certain
point in time revenue shall be recognized at the point when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of the product the company shall consider the
following points: * The company has the current right to receive payment for the product that is the customer
has the current payment obligation for the product; * The company has transferred the legal ownership of the
product to the customer that is the customer has the legal ownership of the product; * The company has
transferred the physical product to the customer that is the customer has physically taken possession of the
product; * The company has transferred the main risks and rewards on the ownership of the product to the
customer that is the customer has obtained the main risks and rewards on the ownership of the product; * The
customer has accepted the product;* Other signs that the customer has obtained control of the product.
(2) Principle of revenue measurement
* The company shall measure revenue based on the transaction price allocated to each individual
performance obligation. The transaction price is the amount of consideration that the company expects to be
entitled to receive due to the transfer of goods or services to customers while does not include payments received
on behalf of third parties and payments expected to be returned to customers.* If there is variable consideration in the contract the company shall determine its best estimate according
to the expected value or the most likely amount but the transaction price including the variable consideration shall
not exceed the accumulated amount that if relevant uncertainty is eliminated will most likely have no significant
reversal.* If there is any significant financing component in the contract the company shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the goods or services.The difference between transaction price and contract consideration shall be amortized through effective interest
method during the contract period. On the starting date of contract if the company expects that the customer will
obtain control of the goods or services and pays the price within one year the significant financing component in
contract shall not be considered.* If the contract contains two or more performance obligations the company shall on date of the contract
allocate the transaction price to each individual obligation item in accordance with the relative proportion of the
separate selling price of promised goods.The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
(3) Specific methods of revenue recognition
(1) Toll service fee income
The toll income of roads and bridges is determined according to the amount collected and receivable by
vehicles when passing through.
(2) Income from providing labor services
For services started and completed in the same fiscal year income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years the Company shall
on the balance sheet date recognize the related labor income by the percentage of completion method provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied the results of the transaction can be reliably estimated: * the total income and total cost of labor
services can be reliably measured;* the economic benefits related to the transaction can flow into the enterprise;
（4） the degree of completion of labor services can be reliably determined.
For services started and completed in the same fiscal year income is recognized when the services are
completed. If the beginning and completion of labor services belong to different fiscal years the Company shall
1292022 Annual Report
on the balance sheet date recognize the related labor income by the percentage of completion method provided
that the result of the labor service transaction can be reliably estimated. When the following conditions can be
satisfied the results of the transaction can be reliably estimated: * the total income and total cost of labor
services can be reliably measured;* the economic benefits related to the transaction can flow into the enterprise;
If the transaction result of providing labor services on the balance sheet date cannot be estimated reliably the
following situations shall be dealt with respectively:
* If the labor cost already incurred is expected to be compensated the income from the service shall be
recognized according to the amount of the labor cost already incurred and the labor cost shall be carried over at
the same amount.* If the incurred labor cost is not expected to be compensated the incurred labor cost shall be included in
the profits and losses of the current period and the income from the provision of labor service shall not be
recognized.When the contracts or agreements signed between the Company and other enterprises include selling goods
and providing services if the part for selling goods and the part for providing services can be distinguished and
measured separately the part for selling goods will be treated as goods sales and the part for providing services
will be treated as service provision. Sales of goods and services can not be distinguished or although they can be
distinguished they can not be measured separately. All parts for the selling goods and providing services will be
treated as sales of goods.The adoption of different business models in similar businesses leads to differences in accounting policies for
income recognition
23. Government Grants
Government subsidies are recognized when they meet the conditions attached to government subsidies and
can be received.Government subsidies for monetary assets shall be measured according to the amount received or receivable.Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be obtained
reliably it shall be measured according to the nominal amount of 1 yuan.Government subsidies related to assets refer to government subsidies obtained by the Company for
purchasing and building or forming long-term assets in other ways; Otherwise as a government subsidy related to
income.Where the government documents do not specify the object of the subsidy and the subsidy can form long-
term assets the part of the government subsidy corresponding to the value of the assets shall be regarded as the
government subsidy related to the assets and the rest shall be regarded as the government subsidy related to the
income; Where it is difficult to be distinguished government subsidies as a whole are treated as income-related
government subsidies.Government subsidies related to assets offset the book value of related assets or are recognized as deferred
revenue and included in profits and losses by stages according to a reasonable and systematic method within the
service life of related assets. Government subsidies related to income which are used to compensate related costs
or losses that have occurred shall be included in current profits and losses or offset related costs; If they are used
to compensate related costs or losses in later periods they will be included in the deferred revenue and they will
be included in the current profits and losses or offset related costs during the recognition period of related costs or
losses. Government subsidies measured in nominal amount are directly included in current profits and losses. The
Company adopts a consistent approach to the same or similar government subsidy business.Government subsidies related to daily activities according to the essence of economic business are included
in other income or offset related costs. Government subsidies irrelevant to routine activities shall be included into
1302022 Annual Report
the non-operating receipt and disbursement.When the recognized government subsidy needs to be returned if the book value of related assets is offset
during initial recognition the book value of assets will be adjusted; If there is a relevant deferred revenue balance
the book balance of the relevant deferred revenue will be offset and the excess will be included in the current
profits and losses; In other cases it is directly included in the current profits and losses.
24.Deferred income tax assets and deferred income tax liabilities
The Company adopts the balance sheet liability method for income tax accounting treatment.
(1) Deferred tax assets
* If there is a deductible temporary difference between the book value of an asset or liability and its tax
basis the deferred income tax assets generated by the deductible temporary difference shall be calculated and
confirmed according to the applicable tax rate during the expected period of recovering the asset or paying off the
liability.* On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be
obtained in the future period to offset the deductible temporary difference the unrecognized deferred income tax
assets in the previous period shall be recognized.* On the balance sheet date the book value of deferred income tax assets shall be reviewed. If it is unlikely
that enough taxable income will be obtained in the future period to offset the benefits of deferred income tax
assets the book value of deferred income tax assets will be written down. When sufficient taxable income is likely
to be obtained the written-down amount will be reversed.
(2) Deferred income tax liabilities
If there is a taxable temporary difference between the book value of assets and liabilities and their tax basis
the deferred income tax liabilities arising from the taxable temporary difference shall be recognized according to
the applicable tax rate during the expected period of recovering the assets or paying off the liabilities.
25.Lease
(1) Identification of lease
On the commencement date of the contract the Company as the lessee or lessor evaluates whether the
customers in the contract have the right to obtain almost all economic benefits arising from the use of the
identified assets during the use period and has the right to lead the use of the identified assets during the use
period. If one party to the contract transfers the right to control the use of one or multiple identified assets within a
certain period of time in exchange for consideration the Company will consider the contract as lease or lease-
included.
（2）The Company as the lessee
On the start date of the lease term the Company recognizes the right-to-use assets and lease liabilities for all
leases except for short-term leases and low-value asset leases that are simplified.The accounting policy of the right-to-use assets is shown in Note V. 26.Lease liabilities are initially measured according to the unpaid lease payment amount on the start date of the
lease term and the present value calculated according to the implied interest rate of the lease or the incremental
borrowing interest rate. The lease payment amount includes: fixed payment amount and substantial fixed payment
amount. If there is lease incentive the related amount of lease incentive shall be deducted; variable lease
payments depending on index or ratio; the exercise price of the option provided that the lessee reasonably
determines that the option will be exercised; payment for exercising the option to terminate the lease provided
that the lease period reflects that the lessee will exercise the option to terminate the lease; and the amount
1312022 Annual Report
expected to be paid according to the residual guarantee value provided by the lessee. The interest expense of the
lease liability in each period of the lease term shall be calculated subsequently according to the fixed periodic
interest rate and included in the current profit and loss. Variable lease payments that are not included in the
measurement of lease liabilities are included in the current profits and losses when actually incurred.Short-term lease
Short-term lease refers to the lease with a lease term of no more than 12 months on the start date of the lease
term except for the lease with purchase option.The Company includes the lease payment of short-term lease into the related asset cost or current profit and
loss according to the straight-line method in each period of the lease term.Low-value asset lease
Low-value asset lease refers to the lease in which the value of a single leased asset is less than RMB 100000
when it is brand new.The Company includes the lease payment of low-value assets into the related asset cost or current profit and
loss according to the straight-line method in each period of the lease term.For the lease of low-value assets the Company chooses to adopt the simplified treatment method mentioned
above according to the specific conditions of each lease.
(3) The Company serves as the lessor
The Company when as the lessor recognizes the leases that have substantially transferred all risks and
rewards related to asset ownership as financial leases and other leases except financial leases as operating leases.Accounting methods for operating leases
For the rent in the operating lease the Company recognizes the current profits and losses according to the
straight-line method in each period of the lease term. The initial direct expenses incurred in connection with the
operating lease shall be capitalized allocated on the same basis as the rental income recognition during the lease
term and included in the current profits and losses by stages. The variable lease payments obtained related to
operating leases that are not included in the lease receipts are included in the current profits and losses when they
actually occur.Accounting treatment method of leasing
In financing lease at the beginning of the lease term Japanese companies take the net investment in leasing
as the recorded value of the financing lease receivable and the net investment in leasing is the sum of the
unsecured residual value and the present value of the lease proceeds that have not yet been received on the start
date of the lease term discounted according to the implied interest rate of the lease. As the lessor the Company
calculates and recognizes the interest income of each period in the lease term according to the fixed periodic
interest rate. The variable lease payments obtained by the Company as the lessor that are not included in the
measurement of net lease investment are recorded into the current profits and losses when they actually occur.The derecognition and impairment of financial lease receivables shall be treated according to the provisions
of Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments
and Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets.
（4） Operation lease
For the rent in the operating lease the Company shall recognize the current profit and loss according to
the straight line method during each period during the lease term. The initial direct expenses incurred related to
the operating lease shall be capitalized and apportioned during the lease term on the same basis as the rental
income recognition and recorded into the current profits and losses in installments. The variable lease payment
amount obtained related to the operating lease that is not included in the lease receipts shall be included in the
current profit and loss upon the actual occurrence.
1322022 Annual Report
26.The right to use assets
(1) Conditions for recognition of the right-to-use assets
The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased assets
during the lease term.On the start date of the lease term the right-to-use assets are initially measured at cost. The cost includes:
The initial measurement amount of lease liabilities; if there is lease incentive for the lease payment issued on or
before the start date of the lease term the amount related to the lease incentive enjoyed shall be deducted; initial
direct expenses incurred by the Company as the lessee; the estimated costs that the Company as the lessee will
incur for dismantling and removing the leased assets restoring the leased assets' site or restoring the leased assets
to the state agreed in the lease terms. The Company as the lessee recognizes and measures the demolition and
restoration costs in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies. It
makes subsequent adjustments to any remeasurement of lease liabilities.
(2) Depreciation method of right-to-use assets
The Company adopts the straight-line method to accrue depreciation. If the Company as the lessee can be
reasonably determined that the ownership of the leased asset is acquired at the expiration of the lease term it shall
accrue depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine
that the ownership of the leased asset can be acquired at the expiration of the lease term it shall accrue
depreciation within the shorter of the lease term and the remaining service life of the leased asset.
(3) See "27. Impairment of Assets" in "Section V Important Accounting Policies and Accounting Estimates"
for the impairment test method and the provision method for impairment of right-to-use assets.
27. Impairment of assets
The following signs indicate that the assets may be impaired:
(1) The market price of assets fell sharply in the current period which was significantly higher than the
expected decline due to the passage of time or normal use.
(2) The economic technical or legal environment in which the Company operates and the market in which
the assets are located have undergone major changes in the current period or in the near future which will have
adverse effects on the Company.
(3) The market interest rate or other market return on investment has increased in the current period which
affects the discount rate used by enterprises to calculate the present value of the estimated future cash flow of
assets resulting in a significant decrease in the recoverable amount of assets.
(4) There is evidence that the assets are outdated or their entities have been damaged.
(5) Assets have been or will be idle terminated or planned to be disposed of in advance.
(6) The evidence reported by the company shows that the economic performance of assets has been or will
be lower than expected such as the net cash flow created by assets or the realized operating profit (or loss) is far
lower than the expected amount.
(7) Other indications that assets may have been impaired.
On the balance sheet date the Company judges various assets that are applicable to the Accounting
Standards for Business Enterprises No.8-Impairment of Assets such as long-term equity investment fixed assets
engineering materials construction in progress intangible assets (except those with uncertain service life) and
conducts impairment test when there are signs of impairment-estimating their recoverable amount. The
recoverable amount is determined by the higher of the net amount of the fair value of the asset minus the disposal
expenses and the present value of the estimated future cash flow of the asset. If the recoverable amount of an asset
1332022 Annual Report
is lower than its book value the book value of the asset shall be written down to the recoverable amount and the
written-down amount shall be recognized as the asset impairment loss which shall be included in the current
profits and losses and the corresponding asset impairment reserve shall be accrued at the same time.If there are signs that an asset may be impaired the Company usually estimates its recoverable amount on the
basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset the recoverable
amount of the asset group is determined based on the asset group to which the asset belongs.Asset group is the smallest asset portfolio that can be recognized by the Company and its cash inflow is
basically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. The
identification of asset group is based on whether the main cash inflow generated by asset group is independent of
other assets or cash inflow of asset group.The Company conducts impairment test every year for intangible assets with uncertain goodwill and service
life formed by business combination and not yet in serviceable condition regardless of whether there is any sign
of impairment. The impairment test of goodwill is carried out in combination with its related asset group or
combination of asset groups.Once the asset impairment loss is confirmed it will not be reversed in the following accounting period.
28. Fair value measurement
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date.The Company measures related assets or liabilities at fair value assuming that the orderly transaction of
selling assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is no
major market the Company assumes that the transaction will be conducted in the most favorable market of related
assets or liabilities. The main market (or the most favorable market) is the trading market that the Company can
enter on the measurement day. The Company adopts the assumptions used by market participants to maximize
their economic benefits when pricing the assets or liabilities.When measuring non-financial assets at fair value the ability of market participants to use the assets for the
best purpose to generate economic benefits or the ability to sell the assets to other market participants for the best
purpose to generate economic benefits shall be considered.The Company adopts the valuation technology which is applicable in the current situation and supported by
sufficient available data and other information and gives priority to the relevant observable input values and only
uses the unobservable input values when the observable input values are unavailable or impractical.For assets and liabilities measured or disclosed at fair value in financial statements it shall determine the fair
value level according to the lowest level input value which is of great significance to fair value measurement as a
whole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained
on the measurement date in an active market; The second-level input value is directly or indirectly observable
input values of related assets or liabilities except the first-level input value; The third level input value is the
unobservable input value of related assets or liabilities.On each balance sheet date the Company reassesses the assets and liabilities recognized in the financial
statements that are continuously measured at fair value to determine whether there is a conversion between the
fair value measurement levels.
29.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable √Not applicable
1342022 Annual Report
（2）Significant estimates changes
□Applicable √Not applicable
VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
VAT Taxable income 3%5%6%9%13%
City maintenance and construction tax The actual payment of turnover tax 5%7%
Enterprise income tax Taxable income 25%
Education Fee Surcharge The actual payment of turnover tax 3%
Local education surcharge The actual payment of turnover tax 2%
2.Preferential tax
None
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Items Amount in year-end Balance Year-beginning
Cash 43420.71 38214.02
Bank deposit 4285350107.61 2955850944.81
Including：Money deposited with a
2389294052.101521003542.69
finance Company
Other 515903.01 515231.72
Interest receivable 4672059.45
Total 4290581490.78 2956404390.55
Other note
1）. As of December 31 2022 the interest receivable is RMB 4672059.45 from interest accrued on seven-day
call deposits.
2） .As of December 312022The 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.
1352022 Annual Report
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Category Book Balance Bad debt provision Book value Book Balance Bad debt provision Book value
Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)
Accrual of bad
debt provision 3143664.00 2.80% 3143664.00 100.00% 12268880.60 7.44% 3143664.00 25.62% 9125216.60
by single
Including：
Accrual of bad
debt provision 109016714.23 97.20% 647916.67 0.59% 108368797.56 152527300.17 92.56% 2599116.90 1.70% 149928183.27
by portfolio
Including：
Aging portfolio 109016714.23 97.20% 647916.67 0.59% 108368797.56 151721072.03 92.07% 2599116.90 1.71% 149121955.13
Other 806228.14 0.49% 806228.14
Total 112160378.23 3791580.67 108368797.56 164796180.77 5742780.90 159053399.87
1362022 Annual Report
Accrual of bad debt provision by single：
In RMB
Balance in year-end
Name Withdrawal
Book balance Bad debt provision Reason
proportion
Guangdong Taiheng Expressway It is not expected
3143664.003143664.00100.00%
to be recovered
Development Co. Ltd.Total 3143664.00 3143664.00
Accrual of bad debt provision by portfolio: Aging
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Expected credit loss rate (%
Within 1 year 96058380.92
1-2 years 12958333.31 647916.67 5.00%
Note：
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Balance in year-end
Within 1 year 96058380.92
1-2 years 12958333.31
2-3 years 2077392.00
Over 3 year 1066272.00
3-4 years 1066272.00
Subtotal 112160378.23
Bad debt provision 3791580.67
Total 108368797.56
(2) Accounts receivable withdraw reversed or collected during the reporting period
The provision for bad debts in the current period is RMB 647916.67; and the amount of bad debt reserve
recovered or reversed in the current period is RMB0.
（3）The current accounts receivable write-offs situation
None
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Amount Aging Proportion(%) Bad debt
provision
1372022 Annual Report
Name Amount Aging Proportion(%) Bad debt
provision
Guangdong Union Electronic Services Co. Within 1 year
67197924.1959.91%
Ltd.Guangdong Lulu Traffic Development Co. 11200258.00 Within 1 year 9.99%
Ltd. 12958333.31 1-2 years 11.55%
Guangdong Jingzhu Expressway Guangzhu Within 1 year
8321625.037.42%
North section Co. Ltd.Guangdong Humen Bridge Co. Ltd. 6072995.36 Within 1 year 5.41%
Guangdong Taiheng Expressway 2077392.00 2-3 years 1.85% 2077392.00
Development Co. Ltd. 1066272.00 3-4 years 0.95% 1066272.00
Total 108894799.89 97.08%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
3. Prepayments
（1）Aging analysis
In RMB
Balance in year-end Balance Year-beginning
Aging Amount Proportion（%） Amount Proportion（%）
Within 1 year 7645192.95 98.20% 5087647.09 97.32%
1-2 years 140000.00 2.68%
2-3 years 140000.00 1.80%
Total 7785192.95 5227647.09
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 non- Proportion %
Company settlement
China Ping An Property Insurance Non- Related Within 1 Unliquidated
5213468.6166.97
Co. Ltd. Guangdong Branch party year
Non- Related Within 1 Unliquidated
PICC 1614154.77 20.73
party year
Guangdong Guanyue Road Bridge Non- Related Within 1 Unliquidated
411875.805.29
Co. Ltd. party year
Non- Related Within 1 Unliquidated
China Mobile Guangzhou Branch 188280.00 2.42
party year
Non- Related Unliquidated
Excellence Appraisal 140000.00 2-3 years 1.80
party
Total 7567779.18 97.21
1382022 Annual Report
4.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 1205472.90 1205472.90
Other receivable 33250771.74 12555651.33
Total 34456244.64 13761124.23
（1） Interest receivable：None
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment
1205472.901205472.90
No.1 Limited partnership enterprise
Total 1205472.90 1205472.90
2）Significant dividend receivable aged over 1 year
In RMB
Whether with
Balance in
Items Aging Reasons for non-recovery impairment and the
year-end
judgment basis
The partnership agreement
Guangdong Radio and Television
expires and can be recovered No it can be recovered
Networks investment No.1 Limited 1205472.90 4-5 years
after the extension procedures in the future
partnership enterprise
are completed
Total 1205472.90
（3） Other accounts receivable
1) Other accounts receivable classified
In RMB
Items Balance in year-end Balance Year-beginning
Securities trading settlement funds 30844110.43 47528056.18
Petty cash 4017944.81 4538885.93
Highway maintenance expenditure 97749481.71
Deposit 26630350.18 3469880.18
Other 2602476.75 4579343.20
Gelin Enze Current account 4007679.91
Total 161844363.88 64123845.40
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Bad Debt Reserves Expected credit losses Expected credit loss over Expected credit losses for the Total
over the next 12 months life (no credit entire duration (credit impairment
1392022 Annual Report
impairment) occurred)
Balance as at
32457.9851535736.0951568194.07
January 12022
Balance as at
January 12022 in
current
This period of
97749481.7197749481.71
provision
Other change -32457.98 -20691625.66 -20724083.64
Balance as at
December 97749481.71 30844110.43 128593592.14
312022
Note 1：The parent company once paid 33683774.79 yuan into Kunlun Securities Co. Ltd Guangdong
Expressway technology investment Co. Ltd once paid 18000000.00 yuan into Kunlun Securities Co. Ltd.Qinghai Province Xining City’s intermediate people’s court made a adjudication under law declared that Kunlun
Securities Co. Ltd went bankrupt and repaid debt in November 11 2006. On March 2007 The Company and
Guangdong Expressway Technology Investment Co. Ltd had switched the money that paid into Kunlun
Securities Co. Ltd to other account receivable and follow the careful principle to doubtful debts provision. As of
December 312022 The 2839664.36 yuan Credit was recovered and the provision for had deb.Loss provision changes in current period change in book balance with significant amount
□Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Book balanceWithin 1 year(Including 1 year） 125683275.60
1-2 years 311707.85
2-3 years 3477902.45
Over 3 years 32371477.98
3-4 years 26560.70
4-5 years 627314.97
Over 5 years 31717602.31
Total 161844363.88
3） Accounts receivable withdraw reversed or collected during the reporting period
The provision for bad debts in the current period is RMB97749481.71; and the amount of bad debt reserve
recovered or reversed in the current period is RMB0.00.
4）The actual write-off other accounts receivable: None
5） Other receivables are classified according to the nature
In RMB
Proportion of the
total year end Closing balance
Name Nature Closing balance Aging balance of the of bad debt
accounts provision
receivable(%)
1402022 Annual Report
Highway
Department of Transport of Within 1
maintenance 97749481.71 60.40% 97749481.71
Guangdong Province year
expenditure
Securities trading se
Kunlun Securities Co.Ltd Over 530844110.43 19.06% 30844110.43
ttlement funds years
Within 1
China Bejing Equity Exchange Investment deposit 24000000.00 14.83%
year
Guangdong Litong Real Vehicle parking 22980.00 1-2 years 0.01%
Estates Investment Co. Ltd. deposit 1630467.36 2-3 years 1.01%
Guangdong Expressway Within 1
Advertising revenue 978997.66 0.60%
Media Co. Ltd. year
Total 155226037.16 95.91% 128593592.14
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
Other note
5. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Items Provision for Provision for
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 257831.85 257831.85
Stock goods 382247.81 382247.81
Total 640079.66 640079.66
(2) Inventory depreciation reserve
None
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
6.Contract assets
n RMB
Year-end balance Year-beginning balance
Items
Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Quality
5286462.455286462.45
guarantee
Total 5286462.45 5286462.45
1412022 Annual Report
Amount and reason of material change of book value of contract assets in the current period::None
The impairment provision of the contract assets in the current period
None
7.Non-current asset due within 1 year
In RMB
Items Year-end balance Year-beginning balance
Pre-payment of business tax before
51745.32
replacing business tax with VAT
7 days notice of deposit interest 2731229.21
Total 2782974.53
8.Other current assets
I n RMB
Items Year-end balance Year-beginning balance
Advance tax payment 1931251.29
VAT retention tax credits 111143.99
Input tax to be certified 21213.96
Total 2042395.28 21213.96
1422022 Annual Report
9. Long-term equity investment
In RMB
Increase/decrease
Investment Closing
Adjustment of Cash bonus or Withdrawal
profit and loss Changes balance of
Investees Opening balance Additional Negative other profits of Closing balance
recognized of other Other impairment
investment investment comprehensive announced to impairmentequity provision
under the income issue provision
equity method
I. Joint venture
2. Affiliated Company
Zhaoqing
Yuezhao
315837951.3542621814.5248250000.00310209765.87
Highway
Co. Ltd.Guangdong
Jiangzhong
318091639.29131250000.0012928724.1215387213.01446883150.40
Expressway
Co. Ltd.Ganzhou
Gankang
154118397.129036040.88163154438.00
Expressway
Co. Ltd.Ganzhou
Kangda
238101017.6935167917.4427000000.00246268935.13
Expressway
Co. Ltd.Shenzhen
320966384.1733927696.216224313.06348669767.32
Huiyan
1432022 Annual Report
Increase/decrease
Investment Closing
Adjustment of Cash bonus or Withdrawal
profit and loss Changes balance of
Investees Opening balance Additional Negative other profits of Closing balance
recognized of other Other impairment
investment investment comprehensive announced to impairmentequity provision
under the income issue provision
equity method
Expressway
Co. Ltd.Guoyuan
Securities 972089465.72 41663112.81 -7194460.81 18626864.76 987931252.96
Co. Ltd.Guangdong
Yuepu
Small
216343601.278556253.8757008.185925366.93219031496.39
Refinancing
Co.Ltd(Note)
Hunnan
Lianzhi
90617427.286555090.10367428.3697539945.74
Technology
Co. .Ltd.SPIC
Yuetong
Qiyuan
964797.354000000.0016441.154981238.50
Chip Power
Technology
Co. Ltd.Shenzhen
95000000.003698677.5398698677.53
Garage
1442022 Annual Report
Increase/decrease
Investment Closing
Adjustment of Cash bonus or Withdrawal
profit and loss Changes balance of
Investees Opening balance Additional Negative other profits of Closing balance
recognized of other Other impairment
investment investment comprehensive announced to impairmentequity provision
under the income issue provision
equity method
Electric Pile
Technology
Co. Ltd
Subtotal 2627130681.24 230250000.00 194171768.63 -7194460.81 424436.54 121413757.76 2923368667.84
Total 2627130681.24 230250000.00 194171768.63 -7194460.81 424436.54 121413757.76 2923368667.84
Other note
1452022 Annual Report
10.Other Equity instrument investment
In RMB
Items Closing balance Opening balance
Guangle Expressway Co. Ltd. 779705656.29 746129411.97
Guangdong Radio and Television Networks investment
55365396.6150000000.00
No.1 Limited partnership enterprise
China Everbright Bank Co. Ltd. 722232678.08 781046414.08
Huaxia Securities Co. Ltd.（Notes1）
Huazheng Asset Management Co. Ltd.（Notes2）
Total 1557303730.98 1577175826.05
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
Amount of Reasons for Reasons for
other designation as other
Dividend consolidated measured at fair consolidated
Cumulative Cumulative
Items income income value and changes income
gain loss
recognized transferred to included in other transferred to
retained comprehensive retained
earnings income earnings
Non-
Guangle
transactional
Expressway Co. 31357354.56
purpose for
Ltd.shareholding
Guangdong
Radio and
Television Non-
Networks transactional
5365396.61
investment No.1 purpose for
Limited shareholding
partnership
enterprise
Non-
China Everbright transactional
47286243.74204671801.28
Bank Co. Ltd. purpose for
shareholding
Non-
Huaxia Securities transactional
5400000.00
Co. Ltd. purpose for
shareholding
Non-
Huazheng Asset
transactional
Management Co. 1620000.00
purpose for
Ltd.shareholding
1462022 Annual Report
Other note:
Note 1: The owner's equity of Huaxia Securities Co. Ltd. was negative and it entered liquidation procedure in
December 2005. The Company made full provision for impairment in respect of this long-term equity investment of
RMB 5.4 million.Note 2: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co. Ltd.As the June 30 2005 the amount of net assets of Huazheng Asset Management Co. Ltd. in book was 279.132 million
yuan and the appraised value was - 2299.5486 million yuan On October 14 2005 Jianyin CITIC Asset Management
Co. Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset
Management Co. Ltd. was willing to pay the price of not more than 42 million yuan to acquire 100% equity of
Huazheng Asset Management Co. Ltd. and solicited the Company's opinions. The Company replied on December 5
2005 abandoning the preemptive right under the same conditions. The Company made provision of 1.62 million yuan
for impairment in respect of this long-term equity investment of 1.62 million yuan.
11.Other non-current financial assets
In RMB
Items Closing balance Opening balance
Classified as financial assets measured at fair value and whose
101400000.00
changes are included in the current profit and loss
Total 101400000.00
12. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Houses and
Items Land use right Construction Total
buildings in process
I. Original value
1.Opening balance 12664698.25 2971831.10 15636529.35
2.Increased amount of the period
（1）Outsourcing
(2)Inventory Fixed assets and
Construction project into
(3) )Increased of Enterprise consolidation
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 12664698.25 2971831.10 15636529.35
II.Accumulated depreciation accumulated
1472022 Annual Report
amortization
1.Opening balance 10842190.02 1905075.92 12747265.94
2.Increased amount of the period 147549.12 73569.36 221118.48
(1)Withdrawal or amortization 147549.12 73569.36 221118.48
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 10989739.14 1978645.28 12968384.42
III. Impairment provision
1.Opening balance
2.Increased amount of the period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance
IV. Book value
1.Closing book value 1674959.11 993185.82 2668144.93
2.Opening book 1822508.23 1066755.18 2889263.41
(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 997648.50
facilities Not accreditation
Total 997648.50
Other note
13. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 10098252638.07 10639272192.02
Total 10098252638.07 10639272192.02
1482022 Annual Report
(1) List of fixed assets
In RMB
Jingzhu
Electricity
Guangfo Guanghui Expressway House and Machinery TransportationItems Fokai Expressway Total
Expressway Expressway Guangzhu buildings equipment equipment
equipment and
other
section
I. Original price
1.Opening
1460270190.6610892817927.306477849977.485135987691.45669836729.921782537704.1662110614.95133644602.5826615055438.50
balance
2.Increased
amount of the 25083672.00 346290000.00 483543.00 15085332.00 92603632.98 3737732.69 12049563.24 495333475.91
period
（1）Purchase 7252386.35 3737732.69 11901361.24 22891480.28
（2）Transfer of
project under 25083672.00 346290000.00 15195800.00 81507599.14 148202.00 468225273.14
construction
(3)Increased of
Enterprise
consolidation
（4）Other 483543.00 -110468.00 3843647.49 4216722.49
3.Decreased
amount of the 1000462.78 20445714.17 25996564.84 4205729.01 3426027.28 55074498.08
period
（1）Disposal or
1000462.781171511.593578243.572520061.251590584.129860863.31
scrap
（2）Disposition
19274202.5822418321.271685667.761835443.1645213634.77
subsidiary
4.Closing 1460270190.66 10916901136.52 6824139977.48 5136471234.45 664476347.75 1849144772.30 61642618.63 142268138.54 27055314416.33
1492022 Annual Report
Jingzhu
Electricity
Guangfo Guanghui Expressway House and Machinery TransportationItems Fokai Expressway Expressway buildings equipment equipment equipment and
Total
Expressway Guangzhu
other
section
balance
II. Accumulated
depreciation
1.Opening balance 1460270190.66 5486082815.59 3950515659.85 3164580817.91 461466902.63 1313881686.26 49780181.86 85083678.62 15971661933.38
2.Increased amount
372147659.29334987506.01154935283.2229518127.57117755356.772116525.138639471.381020099929.37
of the period
（1）Withdrawal 372147659.29 334987506.01 154935283.22 29518127.57 117755356.77 2116525.13 8639471.38 1020099929.37
3.Decreased
amount of the 671858.48 10775360.63 20889438.42 3966574.69 2518165.37 38821397.59
period
(1)Disposal or scrap 671858.48 763684.18 3375785.55 2365190.32 1498792.18 8675310.71
（2）Disposition
10011676.4517513652.871601384.371019373.1930146086.88
subsidiary
4.Closing
1460270190.665857558616.404285503165.863319516101.13480209669.571410747604.6147930132.3091204984.6316952940465.16
balance
III. Impairment
provision
1.Opening balance 2889394.16 1231918.94 4121313.10
2.Increased amount
of the period
（1）
Withdrawal
1502022 Annual Report
Jingzhu
Electricity
Guangfo GuanghuiItems Expressway
House and Machinery Transportation
Fokai Expressway Total
Expressway Expressway Guangzhu buildings equipment equipment
equipment and
other
section
3.Decreased
amount of the
period
(1)Disposal or scrap
4.Closing
2889394.161231918.944121313.10
balance
IV. Book value
1.Closing book
5059342520.122538636811.621816955133.32181377284.02437165248.7513712486.3351063153.9110098252638.07
value
2.Opening
5406735111.712527334317.631971406873.54205480433.13467424098.9612330433.0948560923.9610639272192.02
book
1512022 Annual Report
(2)Temporarily idle fixed assets
In RMB
Accumulated Impairment
Items Original price Book value Remark
depreciation provision
House and
6176339.214645383.001530956.21
buildings
Machinery
2322167.001090248.061231918.94
equipment
(3) Fixed assets leased out from operation lease
None
（4） Details of fixed assets failed to accomplish certification of property
In RMB
Items Book balance Reason
Transportation and other ancillary
House and buildings 163931496.46
facilities，Not accreditation.
（5）liquidation of fixed assets
None
14. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 753565502.12 351130455.06
Total 753565502.12 351130455.06
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Reconstruction
and Expansion
of Nansha-
Zhuhai section 553543942.17 553543942.17 17636216.62 17636216.62
of Guangzhou-
Macao
Expressway
Reconstruction
and Expansion
152274277.83152274277.8342058703.1242058703.12
of Sanbao to
Shuikou
Jiangxi-
Shenzhen high-
speed railway
15664172.9815664172.9814470943.9814470943.98
cross-section
expansion
project
Guangzhou-
10576570.4310576570.43700943.43700943.43
Shantou
1522022 Annual Report
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Railway
Crossing
project
Boluo Central
Station office
and living
facilities 3768689.37 3768689.37
renovation and
expansion
project
Tanwei Bridge
Ship Collision 1749246.00 1749246.00 1749246.00 1749246.00
Pre
Other project 15988603.34 15988603.34 7429542.30 7429542.30
Gualvhu
Interchange 160502763.61 160502763.61
project
Huizhou North
Interchange 105046556.00 105046556.00
Project
Intelligent
Transformation
Project for
Monitoring
1535540.001535540.00
System of
Foshan-Kaiping
Expressway
(Phase II)
Total 753565502.12 753565502.12 351130455.06 351130455.06
1532022 Annual Report
(2) Changes of significant construction in progress
In RMB
Including:
Sourc
capitalizatio Capitalizati
Transferred Capitalizati e
Opening Other Proportion Project n of on of
Name of project Budget Increase to fixed End balance on of of
balance decrease % process interest interest
assets interest fundin
this rate (%)
g
period
Reconstruction and
Expansion of 1373598
Nansha-Zhuhai 9200.00 17636216.6 536646694. 738968. 553543942. 9902436.8 9902436.8
4.03% 3.97% 2.93% Other
section of 2 33 78 17 3 3
Note
Guangzhou-Macao
Expressway
Reconstruction and
Expansion of 3426210 42058703.1 135299246. 25083672.0 152274277. 73215555.80.11% 90.00% 436051.00 3.30% Other
000.0027108382
Sanbao to Shuikou
Jiangxi-Shenzhen
high-speed railway 1696690 14470943.9 15664172.9
1193229.00 92.32% 92.32% Other
cross-section 0.00 8 8
expansion project
Expansion Project
321541014367022.4
of Luogang- 7383321.30 6983701.10 4.47% 4.47% Other
00.000
Lingkeng Section
Guangzhou-
214600010576570.4
Shantou Railway 700943.43 9875627.00 49.29% 49.29% Other
0.003
Crossing project
Boluo Central
Station office and
1700000
living facilities 3768689.37 3768689.37 22.17% 22.17% Other
0.00
renovation and
expansion project
Tanwei Bridge 5000000
1749246.00 1749246.00 3.50% 3.50% Other
Ship Collision Pre 0.00
Gualvhu 2871595 160502763. 38050458.3 198553222. 100.00
69.14% Other
Interchange project 00.00 61 9 00 %
1542022 Annual Report
Including:
Sourc
capitalizatio Capitalizati
Transferred Capitalizati e
Opening Other Proportion Project n of on of
Name of project Budget Increase to fixed End balance on of of
balance decrease % process interest interest
assets interest fundin
this rate (%)
g
period
Tanwei to Hengli
8470000100.00
bridge with street 8409414.36 8409414.36 99.28% Other.00%
lamp project
Huizhou North 2912955 105046556. 123723444. 228770000. 100.00
78.54% Other
Interchange Project 00.00 00 00 00 %
1785455342165372.856966803.460816308.738968.737576898.83117992.10338487.
Total
1100.0076163678786583
Note: The budget for reconstruction and expansion of Nansha-Zhuhai Section of Guangzhou-Australia Expressway includes the construction costs of some engineering projects undertaken by
the government.
1552022 Annual Report
(3)Provision for impairment of construction projects in the current period
None
（4）Engineering Materials：None
15.Use right assets
In RMB
House and Machinery Transportation Other
Items Total
buildings equipment equipment
I. Original price
1.Opening balance 21487031.29 357112.19 1163391.05 1007747.00 24015281.53
2.Increased amount of the
period
I. Original price 1163391.05 1163391.05
1.Opening balance
2.Increased amount of the
496501.35496501.35
period
（3）Other out 666889.70 666889.70
4.Closing balance 21487031.29 357112.19 1007747.00 22851890.48
II. Accumulated depreciation
1.Opening balance 9208727.65 71422.44 527788.99 107017.44 9914956.52
2.Increased amount of the period 9208727.64 71422.44 383956.13 107017.44 9771123.65
（1）Withdrawal 9208727.64 71422.44 383956.13 107017.44 9771123.65
3.Decreased amount of the
911745.12911745.12
period
（1）Disposition
（2）Disposal subsidiary 244855.42 244855.42
（3）Other out 666889.70 666889.70
4.Closing balance 18417455.29 142844.88 214034.88 18774335.05
III. Impairment provision
1.Opening balance
2.Increased amount of the period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposition
4.Closing balance
IV. Book value
1.Closing book value 3069576.00 214267.31 793712.12 4077555.43
2.Opening book value 12278303.64 285689.75 635602.06 900729.56 14100325.01
16. Intangible assets
1562022 Annual Report
(1) List of intangible assets
In RMB
Land use The Turnpike
Items Patent Non-patented Software Total
right right technology franchise
I. Original price
1.Opening balance 1311658.00 42063790.16 318348741.86 361724190.02
2.Increased amount of the
1390080.762044196.043434276.80
period
(1) Purchase 1390080.76 2044196.04 3434276.80
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the
5853470.085853470.08
period
（1）Disposal 4374098.85 4374098.85
（2）Government subsidies
cut
（3）Disposal subsidiary 1479371.23 1479371.23
4.Closing balance 2701738.76 38254516.12 318348741.86 359304996.74
II.Accumulated amortization
1.Opening balance 1311658.00 34803392.38 57104963.21 93220013.59
2.Increased amount of the
1048464.392607149.0920703176.8324358790.31
period
(1) Withdrawal 1048464.39 2607149.09 20703176.83 24358790.31
3.Decreased amount of the
5046278.605046278.60
period
（1）Disposal 4374098.85 4374098.85
（2）Disposal subsidiary 672179.75 672179.75
4.Closing balance 2360122.39 32364262.87 77808140.04 112532525.30
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
(1) Withdrawal
1572022 Annual Report
3.Decreased amount of the
period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 341616.37 5890253.25 240540601.82 246772471.44
2.Opening book value 7260397.78 261243778.65 268504176.43
At the end of this period there is no intangible assets formed through the company's internal research and
development.⑵Details of Land use right failed to accomplish certification of property
In RMB
Reason for not obtaining the title
Items Book value
certificate
Gonghe Town Land 341616.37 Reasons left over from history
17. Long-term amortize expenses
In RMB
Balance in year- Increase in this Amortized Balance in year-
Items begin period expenses Other loss
end
Prepaid business tax and
surcharges before replacement of 2103750.00 350625.00 1753125.00
business tax with value-added tax
Total 2103750.00 350625.00 1753125.00
Other note
18. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment provisions 7912893.77 1978223.45 7264977.10 1816244.28
Deductible loss 363420806.96 90855201.74 671918486.05 167979621.51
Asset appraisal appreciation
120375258.2430093814.56190813984.6047703496.15
depreciation and amortization
Deferred income 21009212.70 5252303.27 30978093.11 7744523.33
Total 512718171.67 128179543.02 900975540.86 225243885.27
1582022 Annual Report
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible DeductibleDeferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Changes in the fair value of other equity
241394552.4560348638.11263485537.2865871384.32
instruments
Deductible temporary differences in the
965577119.54241394279.90995623507.00248905876.75
formation of asset impairment
Difference of amortization method of
9854438.832463609.714580106.281145026.57
franchise of toll road
Changes in the fair value of trading
10400000.002600000.00
financial assets
Total 1227226110.82 306806527.72 1263689150.56 315922287.64
（3）Deferred income tax assets or liabilities listed as net after offset：None
（4）Details of unrecognized deferred tax assets
In RMB
Items Balance in year-end Balance Year-beginning
Deductible temporary difference 37864110.43 93406200.73
Deductible loss 18536190.43 15342382.11
Total 56400300.86 108748582.84
（5）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance Year-beginning Remark
20221133109.04
20233129535.723129535.72
20243618779.073618779.07
20253571100.293571100.29
20263889857.993889857.99
20274326917.36
Total 18536190.43 15342382.11
19. Other Non-current assets
In RMB
Balance in year-end Balance Year-beginning
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Prepaid fixed assets
6258116.726258116.7224675415.3624675415.36
engineering fees
Prepaid business tax 2116662.12 2116662.12 415282.44 415282.44
Less：Part due within 1
51745.3251745.32
year
Total 8374778.84 8374778.84 25038952.48 25038952.48
20. Short-term Borrowing
（1）Short-term Borrowing
In RMB
1592022 Annual Report
Total Balance in year-end Balance Year-beginning
Credit Borrowing 430000000.00
Interest payable not due 387597.20
Total 430387597.20
（2）Overdue short-term borrowings
None
21.Account payable
（1） List of account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 106284617.63 137346075.15
1-2 years（including2 years） 15315242.17 32260718.56
2-3 years（including 3 years） 2693624.18 30239953.68
Over 3 years 73495298.79 64640392.05
Total 197788782.77 264487139.44
（2）Significant payable aging more than 1 year
In RMB
Items Balance in year-end Reason
Foshan Land and resources Bureau. 30507598.21 Unsettled
Guang Zhongjiang Expressway project
17466700.00 Unsettled
Management Dept
Heshan Land and resources Bureau 9186893.60 Unsettled
Guangdong Expressway Technology
5601117.12 Unsettled
Investment Co. Ltd.Poly Changda Engineering Co. Ltd. 4841730.30 Unsettled
Total 67604039.23
Other note
22. Prepayment received
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 1913639.06 1937127.54
1-2 years（Including 2 years） 805117.91 2777.78
2-3 years（Including 3 years）
Over 3 years 8720303.19
Total 2718756.97 10660208.51
(2) Significant advance from customers aging over one year
In RMB
Items Balance in year-end Unpaid/Uncarry over reason
Hebei Jianhong Electric Engineering
805117.91 Unsettled
Co. Ltd.
1602022 Annual Report
Total 805117.91 --
23.Contract liabilities
In RMB
Items Balance in year-end Balance Year-beginning
Advances on sales 22000.00
Lee： Included in other non-current
liabilities
Total 22000.00
24. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
I. Short-term compensation 19213631.91 437876240.74 436429544.05 20660328.60
II.Post-employment benefits -
65071129.4765071129.47
defined contribution plans
III. Dismissal benefits 319422.79 319422.79
Total 19213631.91 503266793.00 501820096.31 20660328.60
（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
505563.47332844655.90332885155.88465063.49
and subsidies
2.Employee welfare 31473322.96 31473322.96
3. Social insurance premiums 24377165.82 24377165.82
Including ：Medical
16092852.9116092852.91
insurance
Work injury insurance 995680.99 995680.99
Maternity insurance 1577891.08 1577891.08
Other 5710740.84 5710740.84
4.Public reserves for housing 37890451.08 37890451.08
5.Union funds and staff
16483121.809627061.458227137.8517883045.40
education fee
8.Other 2224946.64 1663583.53 1576310.46 2312219.71
Total 19213631.91 437876240.74 436429544.05 20660328.60
（3）Defined contribution plans listed
In RMB
1612022 Annual Report
Balance Year- Increase in this period Payable in this period Balance in year-end
Items
beginning
1. Basic old-age
37583265.2537583265.25
insurance premiums
2.Unemployment
1132651.901132651.90
insurance
3.Enterprise annuity
26355212.3226355212.32
payment
Total 65071129.47 65071129.47
25. Tax Payable
In RMB
Items Balance in year-end Due in the current This issue has been Balance in year-end
period delivered
VAT 9619067.45 126433491.94 132549149.84 15734725.35
58889929.38455641581.45540230502.06143478849.99
Enterprise Income tax
Individual Income tax 2552347.21 4797823.81 5447798.66 3202322.06
City Construction tax 633666.06 7898514.20 8309173.36 1044325.22
Education subjoin 306387.03 3789014.72 3975019.53 492391.84
Locality Education
185315.252526504.622650013.06308823.69
subjoin
Vehicle and vessel tax 75577.43 75577.43
Land use tax 3006644.73 3006644.73
Property tax 60799.58 4229458.96 4279152.83 110493.45
Stamp tax 60261.45 338371.08 518691.02 240581.39
Total 72307773.41 608736982.94 701041722.52 164612512.99
26.Other accounts payable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend payable 59994517.46 22941943.24
Other account payable 131173042.77 155028540.52
Total 191167560.23 177970483.76
（1）Interest payable ：None
（2）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 25694517.46 22941943.24
Dividends payable- Guangdong Provincial
11550000.00
Freeway Co.Ltd.Dividends payable-Guangdong Zhujiang Highway
21000000.00
and Bridge Investment Co. Ltd
Dividends payable-HZCI 1750000.00
Total 59994517.46 22941943.24
1622022 Annual Report
Note: Including significant unpaid dividends payable over one year the unpaid reason shall be disclosed:
Final dividend payable 22875730.65
yuan for more than a year in unpaid dividends to shareholders over the year was mainly due to non-
payment of shareholder dividends did not provide information on interest-
bearing bank did not share reform of shareholders to receive dividends or provide application to receive divide
nds the bank information is incorrect resulting in failure to pay a dividend or refund.
（3）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Year-end balance Year-Beginning balance
Estimated project cost 40097538.05 42394262.23
Deposit warranty and security deposit 64205413.61 77685535.90
Other 26870091.11 34948742.39
Total 131173042.77 155028540.52
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Yayao to Xiebian extension 12499448.48 The settlement conditions are not met
Poly Changda Highway Engineering Co.
10429481.01 The settlement conditions are not met
Ltd.Guangdong Guanyue Road & Bridge
7582627.80 The settlement conditions are not met
Co. Ltd.Total 30511557.29
27. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 72870082.19 471545553.76
Payable Bonds due within 1 year 40679999.99 40680000.01
Long-term payable due within 1 year 944339.62 944339.62
Lease liabilities due within 1 year 2517045.16 12474474.87
Total 117011466.96 525644368.26
Other note
28.Other current liabilities
In RMB
Items Balance year-end Year-beginning balance
Tax to be rewritten 600639.56 726336.48
Entrusted loans and interest 500122916.67
Total 500723556.23 726336.48
29. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loan 14525000.00 582195000.00
1632022 Annual Report
Credit loan 5619259650.00 4456002800.00
Interest payable when not due 5680782.19 5968953.76
Less:Long-term loans due within one
72870082.19471545553.76
year
Total 5566595350.00 4572621200.00
30.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 1428381232.94 1427434086.58
Interest payable when not due 40679999.99 40680000.01
Less:Long-term Bonds due within one
40679999.9940680000.01
year
Total 1428381232.94 1427434086.58
1642022 Annual Report
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability
In RMB
The Overflow
Name of the Withdraw Pay in current
Book value Issue date Period Issue amount Opening balance current discount Closing balance
bond interest at par period
issue amount
19 Guangdong
Expressway 2019.3.1-680000000.00 2019.2.27 680000000.00 679025866.59 27200000.00 -450610.40 27200000.00 679476476.99
2024.3.1
MTN001
20 Guangdong
Expressway 2020.3.17-750000000.00 2020.3.13 750000000.00 748408219.99 22500000.00 -496535.96 22500000.00 748904755.95
2025.3.17
MTN001
Total —— 1430000000.00 1427434086.58 49700000.00 -947146.36 49700000.00 1428381232.94
1652022 Annual Report
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
31.Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
Long-term lease liabilities 2709232.95 15671597.45
Less： Financing costs are not
41203.32423662.82
recognized
Less：Lease liabilities due within 1 year 2517045.16 12474474.87
Total 150984.47 2773459.76
32. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 2517493.12 3461832.74
Total 2517493.12 3461832.74
(1) Long-term payable listed by nature of the account
In RMB
Items Balance year-end Year-beginning balance
Non-operating asset payable 2022210.11 2022210.11
Medium term bill underwriting fee 1439622.63 2383962.25
Less：Part due within 1 year 944339.62 944339.62
Total
33. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Cause
Government
30978093.1180857.0010049737.4121009212.70
subsidy
Lease income 38250000.00 9094873.88 7271104.95 40073768.93
Total 69228093.11 9175730.88 17320842.36 61082981.63 --
Details of government subsidies：
In RMB
Amount
Amount Asset-
New of cost
transferred Other income related
Beginning of subsidy in deducted Other
Items to non- recorded in the End of term or
term current in the changes
operational current period income-
period current
income related
period
Cancellation
of Expressway
Related
Provincial 30978093.11 10046949.24 20931143.87
to assets
Toll Station
Project
1662022 Annual Report
Amount
Amount Asset-
New of cost
transferred Other income related
Beginning of subsidy in deducted Other
Items to non- recorded in the End of term or
term current in the changes
operational current period income-
period current
income related
period
Charging
Related
infrastructure 80857.00 2788.17 78068.83
to assets
rewards
34. Stock capital
In RMB
Changed（+，-）Balance Year-
Issuance of Bonus Capitalization Balance in year-end
beginning Other Subtotal
new share shares of public
reserve
Total of
2090806126.002090806126.00
capital shares
35. Capital reserves
In RMB
Decre
ase in
the
Year- beginning Increase in the
Items curre Year-end balance
balance current period
nt
perio
d
Share premium 508711146.99 508711146.99
(1) Capital invested by investors 2508408342.99 2508408342.99
(2) Influence of business combination under the same control --1999697196.00
1999697196.00
Other capital reserves 204749371.50 29673038.54 234422410.04
(1) Changes in other equity of the investee under the equity
-3457667.20424436.54-3033230.66
accounting(Note12)
（2）Other（Note3） 208207038.70 29248602.00 237455640.70
Total 713460518.49 29673038.54 743133557.03
- The situation of change in the current capital reserve is as follows:
Note 1: Guangdong Yuepu Small Refinancing Co. Ltd - an associate company-adjusted the statement
numbers. The Company adjusted the book value of long-term equity investment before equity dilution
according to the shareholding ratio resulting in an increase in capital reserve of RMB 57008.18 due to changes
in equity diluted equity.
1672022 Annual Report
Note 2:Hunan Lianzhi Technology Co. Ltd an associate of Yuegao Capital (Holdings) Guangzhou Co.Ltd-a subsidiary to the Company repurchased the equity of other shareholders resulting in a change in the
long-term equity investment of the subsidiary accounted for by the equity method with an increase in the
capital reserve of 367428.36 yuan.Note 3:The agreement signed by Guangzhou-Huizhou Company and Zengcheng District Government to
add Zengcheng Road Interchange on Guangzhou-Huizhou Expressway which stipulates that Guangzhou-
Huizhou Company will build Shaning Interchange and Xincheng Road Interchange and all the expenses
incurred in the construction of Interchange will be borne by Zengcheng District Government .The agreement signed by Guangzhou-Huizhou Company and Huizhou Transportation Bureau to add
Changkeng Interchange (tentative name) on Guangzhou-Huizhou Expressway which stipulates that
Guangzhou-Huizhou Company will build Changkeng Interchange (renamed Huizhou North Interchange) and
all the expenses incurred in the construction of Interchange will be borne by Guangzhou-Huizhou Company.Huizhou Municipal Transportation Bureau will give Guanghui Company a financial subsidy for this agreed
project. The Huizhou Municipal Transportation Bureau will give Guanghui Company a financial subsidy for the
project under this agreement.After the above project is completed it will be managed by Guangzhou-Huizhou Company. A total of RMB
408249095.50 was received from Government at the beginning of the period of which the opening balance of
capital reserve attributable to the parent company-other capital reserve was RMB 208207038.70 and RMB
57350200.00 was newly received in this period of which capital reserve attributable to the parent company-other
capital reserve increased by RMB29248602.00 in this period.
1682022 Annual Report
36. Other comprehensive income
In RMB
Amount of current period
Less：Amount transferred Less：Prior period
into profit and loss in the included in other After-tax
Year-beginning Amount After-tax
Items Year-endcurrent period that composite income Less：Income attribute to
balance incurred before attribute to the balance
recognied into other transfer to retained tax expenses minority
income tax parent company
comprehensive income in income in the shareholder
prior period current period
1.Other comprehensive
income will be reclassified
195395263.20-19872095.07-5522746.21-14349348.86181045914.34
into income or loss in the
future
Changes in fair value of
investments in other equity 195395263.20 -19872095.07 -5522746.21 -14349348.86 181045914.34
instruments
2.Other comprehensive
income reclassifiable to
-3217796.86-7194460.81-7194460.81-10412257.67
profit or loss in subsequent
periods
Including：Share of other
comprehensive income of
the investee that cannot be
-3217796.86-7194460.81-7194460.81-10412257.67
transferred to profit or loss
accounted for using the
equity method
Total of other
192177466.34-27066555.88-5522746.21-21543809.67170633656.67
comprehensive income
Other notes including the adjustment of the recognition of initial amount of effective part of the cash flow hedging gains and losses transfer into arbitraged items:
1692022 Annual Report
37. Surplus reserve
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus
1225375330.56147681138.461373056469.02
reserve
Total 1225375330.56 147681138.46 1373056469.02
38. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in
4760618543.783725679319.35
last period end
Adjust the total undistributed profits at
546190.04
the beginning of the period
After adjustments: Retained profits at the
4760618543.783726225509.39
period beginning
Add：Net profit belonging to the owner
1277069521.901700406981.99
of the parent company
Less: Statutory surplus reserve 147681138.46 57589364.93
Common stock dividend payable 1191759491.82 608424582.67
Retained profit at the end of this term 4698247435.40 4760618543.78
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 .
39.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 4098772102.50 1553813332.80 5214504182.23 1899514164.39
Other operation 69862011.48 32535702.68 73553495.70 29997861.17
Total 4168634113.98 1586349035.48 5288057677.93 1929512025.56
40. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 7921866.68 10148595.37
1702022 Annual Report
Education surcharge 3799071.81 4837411.83
Property tax 4229458.96 4108460.47
Land use tax 3006644.73 2803701.59
Vehicle use tax 75577.43 75614.77
Stamp tax 338371.08 589040.04
Business tax 370495.32 370495.32
Locality Education surcharge 2526337.62 3218282.06
Total 22267823.63 26151601.45
41. Administrative expenses
In RMB
Items Amount of this period Amount of last period
Wage 134410035.06 160631132.11
Depreciation and Amortization 10449720.47 12006378.25
Intangible assets amortization 1834472.02 2145714.88
Low consumables amortization 831662.81 856378.64
Rental fee 12614151.08 12641157.99
Office expenses 7819756.53 7832333.51
Travel expenses 470595.17 802598.61
Consultation expenses 1294905.66 1102939.62
The fee for hiring agency 4182360.31 5345624.33
Listing fee 731441.20 854072.73
Information cost and maintenance fee 3267275.05 3821536.06
Other 13519706.10 15565575.73
Total 191426081.46 223605442.46
42.R& D expenses
In RMB
Items Amount of this period Amount of last period
Wage 1613486.50 1218145.17
Material cost 412566.35 117433.62
Depreciation 5521.90 30469.69
Low consumables amortization 2112.93
Office expenses 3957.92 12252.27
Repairs cost 391.15 11988.44
Vehicle fee 15512.82
Development cost 12554604.00 11535779.93
Other 1245.30 327243.86
Total 14591773.12 13270938.73
43.Financial expenses
In RMB
Items Amount of this period Amount of last period
1712022 Annual Report
Interest expenses 238444227.57 282653629.93
Deposit interest income（-） -47404858.97 -64220887.86
Exchange Income and loss（Gain-） -988123.62 371334.74
Bank commission charge 1012828.60 628831.70
Other 7077.52 2281404.25
Total 191071151.10 221714312.76
44.Other gains
In RMB
Amount of this Amount of last
Items Asset-related or income-
period period related
Government Subsidy-Cancel the Special Subsidy for
10046949.24 13567476.53 Related to assets
Provincial Toll Station Project of Expressway
Government subsidy- Stable job subsidies 2344310.46 1198029.54 Relate to income
Government subsidy-- Enterprises with industrial training
1243500.00 Relate to income
subsidies
Government subsidy--- Technology Reward 20000.00 Relate to income
Government subsidy-- - Charging infrastructure rewards 2788.17 Related to assets
Government subsidy-Enterprises subsidies 339000.00 Relate to income
Maternity allowance 691491.83 579838.26 Relate to income
Veterans' VAT reduction and exemption 309883.38 284718.89 Relate to income
Withholding and remitting enterprise prepaid income tax
273172.75 343853.85 Relate to income
fees
Veterans' VAT reduction and exemption 39056.05 43938.09 Relate to income
Total 13727651.88 17600355.16
45. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity
194171768.63227004893.87
method
Dividends earned during the holding period on
47286243.7450056360.49
investments in other equity instrument
The investment income generated by the disposal
13564262.33
of the subsidiaries
Interest income on entrusted loans 25515.00
Other -91000.00
Total 254956789.70 277061254.36
46. Changes in the fair value of the earning
In RMB
Items Amount of this period Amount of last period
Other non-current financial assets 10400000.00
Total 10400000.00
1722022 Annual Report
47. Credit impairment losses
In RMB
Items Amount of this period Amount of last period
Impairment losses on account receivable -647916.67 -2028919.47
Impairment losses on other receivable -97749481.71 93582.00
Total -98397398.38 -1935337.47
48. 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
49.Assets disposal income
In RMB
Items Amount of this period Amount of last period
Non-current assets disposal gains 478663.58 3017370.44
Including：Income from disposal of
478663.583017370.44
Fixed assets
Total 478663.58 3017370.44
50. Non-Operation income
In RMB
The amount of non-operating
Items Amount of current period Amount of previous period gains & losses
Non-current assets are
damaged and scrapped for 224100.38 371681.42 224100.38
profit
Including：Fixed assets 224100.38 371681.42 224100.38
Receive assets free of charge 6119104.00
Insurance claim income 6582174.68 5020697.37 6582174.68
Road property claim income 2678040.82 3436760.97 2678040.82
Relocation compensation
1714382.93
income
Compensation for
construction land and 186642.86
ground attachments
Other 564625.40 1126225.63 564625.40
Total 10048941.28 17975495.18 10048941.28
51. Non-Operation expense
In RMB
The amount of non-operating
Items Amount of current period Amount of previous period gains & losses
Non-current assets are
damaged and scrapped for 640374.72 753220.25 640374.72
profit
Including：Fixed assets 640374.72 753220.25 640374.72
1732022 Annual Report
Road rehabilitation
11455442.767821358.3211455442.76
expenditure
Expenditure for public
12000000.00
welfare donations
Fine 2254.33 153.62 2254.33
Other 165222.71 1908653.45 165222.71
Total 12263294.52 22483385.64 12263294.52
52. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 453820023.55 661629051.42
Deferred income tax expense 93471328.54 73735963.14
Total 547291352.09 735365014.56
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total 2341879602.73
Current income tax expense accounted by tax and relevant
585469900.69
regulations
Influence of income tax before adjustment 195238.73
Influence of non taxable income -52274937.65
Impact of non-deductible costs expenses and losses 15884949.59
The current period does not affect the deferred tax assets
12790588.08
recognized deductible temporary differences or deductible loss
Other -14774387.35
Income tax expense 547291352.09
53.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 44010814.62 64220887.86
Unit current account 76546511.83 62196377.10
Total 120557326.45 126417264.96
（2）Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Management expense 28648089.97 37053815.32
Unit current account 98694135.34 45656506.01
Donation 12000000.00
Total 127342225.31 94710321.33
1742022 Annual Report
(3).Cash receivable related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Government infrastructure investment
57350200.00140145195.50
subsidies
Internal fund lending of the group 500000000.00
Total 557350200.00 140145195.50
（4）Cash paid related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Issuance fee of medium-term notes 1001869.75 776869.75
Purchase of 21% equity consideration of
1221839292.00
Guanghui
Cash paid for the lease liabilities 13278583.90 8134723.18
Total 14280453.65 1230750884.93
54. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from operating activities
Net profit 1794588250.64 2426784700.28
Add：Credit loss preparation 98397398.38 1935337.47
Impairment loss provision of assets 2889394.16
Depreciation of fixed assets oil and gas assets and
1018003178.731229561027.39
consumable biological assets
Depreciation of Use right assets 9771123.65 9914956.52
Amortization of intangible assets 24232065.30 36587254.42
Amortization of Long-term deferred expenses 350625.00 350625.00
Loss on disposal of fixed assets intangible assets and other
-478663.58-3017370.44
long-term deferred assets
Fixed assets scrap loss 416274.34 381538.83
Loss on fair value changes -10400000.00
Financial cost 237456103.95 283024964.67
Loss on investment -254956789.70 -277061254.36
Decrease of deferred income tax assets 97064342.25 105511533.12
Increased of deferred income tax liabilities -3593013.71 -31775569.98
Decrease of inventories -586318.60
Decease of operating receivables -102793804.75 8323698.17
1752022 Annual Report
Increased of operating Payable -156030532.12 -123079795.49
Other
Net cash flows arising from operating activities 2752026558.38 3669744721.16
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 4284688231.33 2955183190.55
Less: Beginning balance of cash equivalents 2955183190.55 2846176803.89
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent 1329505040.78 109006386.66
（2）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
4284688231.332955183190.55
Cash
43420.7138214.02
Of which: Cash in stock
Bank savings could be used at any time 4284128907.61 2954629744.81
Other monetary capital could be used at any
515903.01515231.72
time
Balance of cash and cash equivalents at the
4284688231.332955183190.55
period end
55. 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 note：
As of December 31 2022 the Guangzhu Section of the Beijing-Zhuhai Expressway a subsidiary of the
Company has a borrowing balance of RMB14525000.00 (it’s all long-term loan balance) from the Wuyang
Branch of Industrial and Commercial Bank of China Co. Ltd and it provided the pledge guarantee by the toll
rights of the Guangzhu Section of the Beijing-Zhuhai Expressway project (the right to collect tolls for vehicles
driving on the Guangzhu Section of the Beijing-Zhuhai Expressway and the income generated by the ownership
of such rights) corresponding to the balance of the loan.
1762022 Annual Report
VIII. Changes of merge scope
1. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
√ Yes □No
In RMB
The
difference
between the
Amount
disposal price
Determination transferred
and the share
Percentage Book Fair value method and from other
of the Gain or loss
of value of of main comprehensive
Determination subsidiary's from
Equity Equity point of remaining remaining remaining assumptions income related
Subsidiary Equity basis for the net assets at remeasurement
disposal disposal loss of equity at equity on equity at of fair value to equity
name disposal price point of loss the of remaining
ratio method control the date of the date the date of remaining investment in
of control consolidated equity at fair
loss of of loss of of loss of equity on the atomic
financial value
control control control date of loss of company to
statement
control investment
level
profit and loss
corresponding
to the disposal
investment
Guangdong Sale of Completed
Expressway shares the equity
March
Technology 50623900.00 100.00% under transfer the 13564262.33 0.00% 0.00 0.00 0.00 0.00
292022
Investment common transfer of
Co. Ltd. control control right
Other note：
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period
□ Yes √ No
1772022 Annual Report
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Shareholding Ratio
Main Places of Registration Nature of Obtaining
Name of Subsidiary (%)
Operation Place Business Method
direct indirect
Under the
same
Expressway
Guangfo Expressway Co. Ltd. Guangzhou Guangzhou 75.00% control
Management
business
combination
Under the
same
Expressway
Guanghui Expressway Co. Ltd. Guangzhou Guangzhou 51.00% control
Management
business
combination
Under the
same
Jingzhu Expressway Guangzhu Expressway
Zhongshan Guangzhou 75.00% control
Section Co.Ltd. Management
business
combination
Yuegao Capital Investment
Guangzhou Guangzhou 100.00% Investment
Investment(Guangzhou)Co. Ltd. management
Notes: holding proportion in subsidiary different from voting proportion: None
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
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
(2) Important Non-wholly-owned Subsidiary
In RMB
Sharehold
ing Ratio Profit or Loss Owned Dividends Distributed Equity Balance of the
of by the Minority to the Minority Minority Shareholders
Name of Subsidiary
Minority Shareholders in the Shareholders in the in the End of the
Sharehold Current Period Current Period Period
ers (%)
Guangfo Expressway Co. Ltd. 25.00% -13850657.08 53112309.95 64351739.99
Guangdong Guanghui Expressway
49.00%442005748.98411799965.711974868461.63
Co. Ltd.Jingzhu Expressway Guangzhu
25.00%89363636.84126239706.53253799315.89
Section Co.Ltd.Holding proportion of minority shareholder in subsidiary different from voting proportion
None
1782022 Annual Report
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance
Name
Current assets Non- current assets Total assets Current Liabilities Non- current liabilities Total liabilities
Guangfo Expressway Co. Ltd. 270445990.72 15689069.15 286135059.87 28728099.92 28728099.92
Guangdong Guanghui
1463091700.932980427023.344443518724.27242093924.47171081000.56413174925.03
Expressway Co. Ltd.Jingzhu Expressway Guangzhu
1097313535.802536645298.713633958834.512477933314.32140828256.682618761571.00
Section Co.Ltd.Year-beginning balance
Name
Current assets Non- current assets Total assets Current Liabilities Non- current liabilities Total liabilities
Guangfo Expressway Co. Ltd. 539508987.55 17935998.96 557444986.51 32186158.45 32186158.45
Guangdong Guanghui
1106203367.943200915171.314307118539.25199770257.66195999137.99395769395.65
Expressway Co. Ltd.Jingzhu Expressway Guangzhu
78321084.792167316422.402245637507.19455558150.91627377814.001082935964.91
Section Co.Ltd.In RMB
Amount of current period Amount of previous period
Name Total Cash flows from Total Cash flows from
Business income Net profit Comprehensive operating Business income Net profit Comprehensive operating
income activities income activities
Guangfo Expressway Co. Ltd. 68796094.51 -55402628.32 -55402628.32 203596819.21 452189259.01 216784938.57 216784938.57 173090933.86
Guangdong Guanghui
1852612486.85902052548.93902052548.931213241301.992153255526.581111564548.101111564548.101481786551.53
Expressway Co. Ltd.Jingzhu Expressway Guangzhu
935890869.56357454547.35357454547.35574838142.221173205770.48510059420.32510059420.32779998964.52
Section Co.Ltd.
1792022 Annual Report
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
None
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
Main treatment of the
Registration
Name operating Business nature investment of
place Directly Indirectly joint venture or
place associated
enterprise
Zhaoqing Yuezhao Highway Co. Zhaoqing Zhaoqing Expressway
25.00% Equity method
Ltd. Management
Guangdong Guangdong
Shenzhen Huiyan Expressway Co. Expressway
Shenzhen Shenzhen 33.33% Equity method
Ltd. Management
Guangdong Jiangzhong Expressway Expressway
Zhongshan Zhongshan 15.00% Equity method
Co. Ltd. Management
Ganzhou kangda Expressway Co. Expressway
Gangzhou Ganzhou 30.00% Equity method
Ltd. Management
Ganzhou Gankang Expressway Co. Expressway
Gangzhou Ganzhou 30.00% Equity method
Ltd. Management
Guangdong Yuepu Small Hand all kinds of
Guangzhou Guangzhou 15.48% Equity method
Refinancing Co. Ltd small loans
Guangyuan Securities Co. Ltd. Hefei Hefei Security business 2.37% Equity method
Research and
Hunan Lianzhi Technology Co.Changsha Changsha experimental 12.01% Equity method
Ltd.development
SPIC Yuetong Qiyuan Chip Power New Energy
Guangzhou Guangzhou 5.00% Equity method
Technology Co. Ltd service
Software and
Shenzhen Garage Electric Pile
Shenzhen Shenzhen Information 17.40% Equity method
Technology Co. Ltd
technology
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
None
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
Guangdong Jiangzhong Expressway Co. Ltd. Guangyuan Securities Co. Ltd.，Yuepu Small Refinancing Co.Ltd.and Hunan Lianzhi Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.and
1802022 Annual Report
Shenzhen Garage Electric Pile Technology Co.Ltd. holds 20% of the voting rights but has the power to participate in making decisions on their financial and o
perating decisions and therefore deemed to be able to exert significant influence over the investee.
(2) Main financial information of significant joint venture
None
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of Year-beginning balance/ Amount of
current period previous period
Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.Current assets
Non-current assets
Total assets 130765208142.95 114683858604.22
Current liabilities
Non-current Liabilities
Total liabilities
Minority Shareholders’ Equity
Shareholders’ equity attributable to shareholders of
32927214909.6032259179385.22
the parent
Pro rata share of the net assets calculated 780835620.42 764993833.19
Adjustment items
--Goodwill 207095632.54 207095632.54
-- Internal transactions did not achieve profits
--Other
The book value of equity investments in joint ventu
987931252.96972089465.73
res
Fair value of equity investment of associated
655044744.06796815881.40
enterprises with open quotation
Buinsess incme 5357837845.51 6076303560.25
Net profit 1719972806.89 1871872525.11
Net profit from terminated operations
Other comprehensive income -303384670.30 410531198.59
Total comprehensive income 1416588136.59 2282403723.70
Dividends received from associates during the year 18626864.76 20696516.40
(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
1812022 Annual Report
of the following items
Associated enterprise：
Total book value of the investment 1935437414.88 1655041215.52
Total amount of the pro rata calculation
of the following--Net profit ms
-Nit profit 152508655.82 182411820.30
--Total comprehensive income 152508655.82 182411820.30
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
None
(6) The excess loss of joint venture or associated enterprise
None
(7) The unrecognized commitment related to joint venture investment
None
(8) Contingent liabilities related to joint venture or associated enterprise investment
None
4. Significant common operation
None
5. Equity of structure entity not including in the scope of consolidated financial statements
None
6.Other
None
X. Risks Related to Financial Instruments
The company has the main financial instruments such as bank deposits receivables and payables investments
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk market risk and liquidity risk. The company’s management
shall manage and monitor these risks and ensure above risks to be controlled within certain scope.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
1822022 Annual Report
related to floating rate bank borrowings. The Company's policy is to maintain the floating interest rate of these
borrowings and at the same time to reasonably reduce the risk of interest rate fluctuation by shortening the term
of a single loan and specifically agreeing on prepayment terms.
（3）Other price risk
The investments held by the Company are classified as financial assets measured at fair value and whose
changes are included in other comprehensive income and are measured at fair value on the balance sheet date.Therefore the Company bears the risk of changes in the securities market.
2.Credit risk
As of December 312022 the largest credit risk exposure that may cause financial losses of the Company
mainly comes from the loss of financial assets of the Company caused by the failure of the other party to perform
its obligations.In order to reduce credit risk the Company only deals with recognized and reputable customers. In addition
the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequate
bad debt provisions are made for unrecoverable amounts. Consequently the Company's management believes that
the Company's credit risk has been greatly reduced.The Group's working capital is deposited in banks with higher credit rating so the credit risk of working
capital is relatively low.Financial assets overdue or impaired;
(1) Aging analysis of financial assets with overdue impairment: Not existed
(2) Analysis of financial assets that have suffered single impairment: Refer to "4 Other Receivables" in VII
and "10 Investment in Other Equity Instruments" in VII of this section for details.
3.Liquidity risk
When managing liquidity risks the Company maintains sufficient cash and cash equivalents as deemed by
the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the
loan agreement.XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
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
(I) Trading financial assets 101400000.00 101400000.00
（2）Equity instrument investment 101400000.00 101400000.00（II）Other equity instrument
722232678.08835071052.901557303730.98
investment
Total assets continuously measured
722232678.08936471052.901658703730.98
at fair value
II. Non –persistent measure -- -- -- --
1832022 Annual Report
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period the company holds shares 235254944 shares of China Everbright Bank
According to the closing price of December 312022 of 3.07 yuan the final calculation of fair value was
722232678.08 yuan.
3. Fair value of financial assets and liabilities not measured at fair value The valuation techniques adopted and
the qualitative and quantitative information of important parameters for continuous and non-continuous level 2
fair value measurement items
Items Fair value as of December Valuation technology Unobservable input
312022 value
Hire a third party for evaluation or enjoy the
Unlisted equity
936471052.90 share of the net book assets of the investee based
investment
on the shareholding ratio
4. Fair value of financial assets and liabilities not measured at fair value
The Company's financial assets and liabilities measured in amortized cost mainly include: accounts
receivable other receivables contract assets short-term loans accounts payable other payables non-current
liabilities due within one year long-term loans bonds payable and long-term payables.There is no significant difference between the book value of financial assets and liabilities not measured at
fair value and the fair value.XII. 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
Notes ：
Guangdong Communication Group Co. Ltd. is the largest shareholder of the Company. legal representative:
Deng Xiaohua. Date of establishment: June 23 2000. As of December 31 2022Registered capital: 26.8 billion
yuan. It is a solely state-owned limited company. Business scope：equity management organization of asset
reorganization and optimized allocation raising funds by means including mortgage transfer of property rights
and joint stock system transformation project investment operation and management traffic infrastructure
construction highway and railway project operation and relevant industries technological development
application consultation and services highway and railway passenger and cargo transport ship industry
relevant overseas businesses; The value-added communication business.The finial control of the Company was State owned assets supervision and Administration Commission of
1842022 Annual Report
Guangdong Provincial People's Government.Other note：
2.Subsidiaries of the Company
Subsidiaries of this enterprise see IX(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the IX-3 Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period or form balance due to related party transactions in previous period:
Name Relation with the Company
Shenzhen Huiyan Expressway Co. Ltd. Associated enterprises of the Company
Zhaoqing Yuezhao Highway Co. Ltd. Associated enterprises of the Company
Ganzhou Kangda Expressway Co. Ltd. Associated enterprises of the Company
Ganzhou Gankang Expressway Co. Ltd. Associated enterprises of the Company
Guangdong Jiangzhong Expressway Co. Ltd. Associated enterprises of the Company
4. Other Related parties
Name Relation with the Company
Guangdong Boda Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Chaohui Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong East Thinking Management Technology
Fully owned subsidiary of the parent company
Development Co. Ltd.Guangdong Litong Property Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Media 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 Litong Technology Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Development 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 Lulutong Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Luoyang Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Provincial Freeway Co.Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Communication Group Finance Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Read & Bridge Construction Development Co.Fully owned subsidiary of the parent company
Ltd.Guangdong Tongyi Expressway Service Area Co. Ltd Fully owned subsidiary of the parent company
1852022 Annual Report
Name Relation with the Company
Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Rescue 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
Guangdong Traffic Development Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Communication Planning & Design Institute Co.Shares of parent company
Ltd.Guangzhongjiang Expressway Project Management Dept Managed by the parent company
Guangzhou Aitesi Communication equipment Co. Ltd. Associated enterprises controlled by the same parent company
Guangdong Jingzhu Expressway Guangzhu North Section Co.Associated enterprises controlled by the same parent company
Ltd.Guangdong Feida Traffic Engineering Co. Ltd. Associated enterprises controlled by the same parent company
Poly Changda Engineering Co. Ltd. Shares of parent company
Guangdong Changda Road Conservation Co. Ltd. Shares of parent company
Guangdong Xiangfei Highway Engineering Supervision Co.Subsidiary of the parent company
Ltd
Guangdong Expressway Technology Co. Ltd. Fully owned subsidiary of the parent company
Hunan Lianzhi Technology Co. Ltd. A wholly owned subsidiary of the 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 Communications Testing Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Kaiyang Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong United Telecom Service Information Technology Fully owned subsidiary of the parent company
Co. Ltd.Guangdong Maozhan Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Automobile Transportation Group Co. Ltd. Fully owned subsidiary of the parent company
Cultural and tourism branch
Guangdong Yangmao Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Zhaoyang Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangzhou Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company
Jiangmen Jianghe Expressway Co. Ltd. Fully owned subsidiary of the parent company
Yunfo Guangyun Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Nanao Traffic Qingyun Expressway Management
Managed by the parent company
Center
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
1862022 Annual Report
Amount of Amount
Over the
Content of related
Related parties current period of
trading Amount of last
transaction limit or period
previous not?
period
1.Business cost
Project fund
Poly Changda Engineering Co. Ltd. 39604731.00 25299515.00
service
Guangdong Union electronic services
Service 23704775.99 25131901.47
co. Ltd.Guangdong Communications Testing Project fund
10551045.006652840.00
Co. Ltd. service
Project fund
Guangdong Lulutong Co. Ltd. 7836175.59 5775057.23
service
Guangdong Feida Traffic Engineering
Maintenance 6372528.95 7773274.29
Co. Ltd.Guangdong Xinyue Traffic Investment Project fund
5487176.004366423.49
Co. Ltd. service
Guangdong Humen Bridge Co. Ltd. Service 3524001.08 3686679.96
Guangdong Yueyun Traffic Rescue
Rescue service fee 3473440.00 3343600.00
Co. Ltd.Guangzhou Xinyue Asphalt Co. Ltd. Purchase 3135448.69 7587872.00
Guangdong Hualu Traffic Technology
Project 2557895.23 4512951.46
Co. Ltd.Guangdong Expressway Technology
Maintenance Test 3539282.52
Investment Co. Ltd.Guangdong Litong Technology
Maintenance 1700262.90 1713971.99
Investment Co. Ltd.Guangdong East Thinking
Maintenance，Management Technology 1458780.20 687200.00
Service
Development Co. Ltd.Guangdong Communication Planning Project labour
463795.001156607.57
& Design Institute Co. Ltd. service
Guangdong Tongyi Expressway
Service 102152.00 1050181.10
Service Area Co. Ltd
Guangzhou Aitesi Communication
Project 8310.00 993635.40
Equipment Co. Ltd.Guangdong Changchang Road Project -77232.00
Maintenance Co. Ltd.Guangzhou Xinyue Traffic Project 8889414.00
Technology Co. Ltd.Hunan Lianzhi Monitoring Project 850700.00
Technology Co. Ltd.Guangdong Union electronic services
Service 38603.77
co. Ltd.Subtotal 113442568.15 109510428.73
2.Financial cost
1872022 Annual Report
Amount of Amount
Over the
Content of related
Related parties current period of
trading Amount of last
transaction limit or period
previous not?
period
Guangdong Communication Group Borrowing Interest
14854227.766494583.35
Finance Co. Ltd. expresses
Guangdong Communication Group Deposit interest
-25570660.76-39941667.46
Finance Co. Ltd. income
Guangdong Communication Group
Commission charge 6881.51 32273.93
Finance Co. Ltd.Guangdong Communication Group
Interest 122916.67
Finance Co. Ltd.Guangdong Jiangzhong Expressway
Interest 27405.00
Co. Ltd.Subtotal -10586634.82 -33387405.18
3.Administrative expenses
Guangdong Litong Development
Management Fee 3119747.07 2085605.68
Investment Co. Ltd.Guangdong Union electronic services
maintenance fee 993500.00
co. Ltd.Guangdong East Thinking
Maintenance，Management Technology 474905.66 1654473.11
Service
Development Co. Ltd.Guangdong Lulutong Co. Ltd. Maintenance 67300.00
Guangdong Tongyi Expressway
Service 16000.00 57034.88
Service Area Co. Ltd
Guangdong Expressway Media Co. Public welfare
17556.00
Ltd. publicity fee
Subtotal 4671452.73 3814669.67
4.R & D
Guangdong Communications Testing Scientific research
3899843.00
Co. Ltd. project
Hunan Lianzhi Monitoring Scientific research
659885.00850700.00
Technology Co. Ltd. project
Guangdong Hualu Traffic Technology Scientific research
199969.00
Co. Ltd. project
Guangdong Communication Group Scientific research
2962500.00
Co. Ltd. project
Subtotal 4759697.00 3813200.00
5.Fixed assets
Poly Changda Engineering Co. Ltd. Purchase assets 21636899.00
Guangdong Lulutong Co. Ltd. Purchase assets 6305408.00
Guangdong Hualu Traffic Technology Purchase assets 3272616.23 678764.67
Co. Ltd.Guangdong Communication Planning Purchase assets 1333458.66
& Design Institute Co. Ltd.Guangdong Litong Technology Purchase assets 1083407.99 675150.00
Investment Co. Ltd.
1882022 Annual Report
Amount of Amount
Over the
Content of related
Related parties current period of
trading Amount of last
transaction limit or period
previous not?
period
Guangdong Feida Traffic Engineering Purchase assets 302909.00 400013.00
Co. Ltd.Guangdong Communications Testing Purchase assets 183430.00
Co. Ltd.Guangdong East Thinking
Management Technology Purchase assets 598500.00
Development Co. Ltd.Subtotal 34118128.88 2352427.67
6. Construction in process
Guangdong Communication Planning
Purchase assets 21386526.00 15047972.50
& Design Institute Co. Ltd.Poly Changda Engineering Co. Ltd. Purchase assets 13850389.47 275143275.83
Guangdong Highway Construction Purchase assets 2029339.19
Co. Ltd.Guangdong Hualu Traffic Technology
Purchase assets 1045494.00 12390585.09
Co. Ltd.Guangdong Xinyue Traffic Investment
Purchase assets 1116576.78 78020865.98
Co. Ltd.Guangdong Communications Testing Purchase assets 68052.00 88880.00
Co. Ltd.Guangdong Litong Technology Purchase assets 185000.00
Investment Co. Ltd.Guangdong Feida Traffic Engineering Purchase assets 10460593.04
Co. Ltd.Guangdong East Thinking
Management Technology Purchase assets 1461612.00
Development Co. Ltd.Guangdong Lulutong Co.Ltd. Purchase assets 364490.00
Guangdong Xiangfei Highway
Purchase assets 208829.00
Engineering Supervision Co. Ltd
Subtotal 39496377.44 393372103.44
7.Non-operating expenses
Expenses for civil
Poly Changda Engineering Co. Ltd. engineering 3883375.00 3207485.00
restoration
Guangdong Xinyue Traffic Investment
Sporadic repair fees 294810.00 255719.00
Co. Ltd.Guangdong Lulutong Co. Ltd. Maintenance 98491.00
Guangdong Hualu Traffic Technology
Verification fee 5766.55
Co. Ltd.Subtotal 4276676.00 3468970.55
Related transactions on sale goods and receiving services
1892022 Annual Report
In RMB
Related party Content Amount of current Amount of
period previous period
1.Business income
Jingzhu Expressway Guangzhu North section Commission management
23773018.8521805771.37
Co. Ltd. fee
Guangdong Tongyi Expressway Service Area
electricity 1187798.23
Co. Ltd
Ganzhou Gankang Expressway Co. Ltd. Salaries of expatriate staff 848557.89 730675.94
Zhaoqing Yuezhao Highway Co. Ltd. Salaries of expatriate staff 817436.38 1261683.80
Shenzhen Huiyan Expressway Co. Ltd. Salaries of expatriate staff 767691.55 1045253.97
Poly Changda Engineering Co. Ltd. water and electricity bills 167505.31 155736.83
Ganzhou Kangda Expressway Co. Ltd. Salaries of expatriate staff 515567.27 506038.55
Guangdong Jiangzhong Expressway Co. Ltd. Salaries of expatriate staff 500214.96 650904.70
Guangdong Traffic Development Co. Ltd. electricity 945395.40 342916.53
Guangdong Expressway Technology Investment
Salaries of expatriate staff 114620.52
Co. Ltd.Guangdong Litong Technology Investment Co. electricity 27125.58 16000.00
Ltd.Guangdong Expressway Media Co. Ltd. Water and electricity 24258.08 74814.00
Guangdong Yueyun Traffic Rescue Co. Ltd. Water and electricity 17915.70 30917.99
Guangdong Provincial Freeway Co.Ltd. Project fund 4396237.98
Guangdong Feida Traffic Engineering Co. Ltd CPC card sales revenue 3954609.41
Guangdong Highway Construction Co. Ltd. Service Test 827703.80
Guangdong Guangzhu West Line Expressway
Service Test 463391.75
Co. Ltd.Guangdong Chaohui Expressway Co. Ltd. Test 441132.07
Guangdong Road & Bridge Construction
Test 384962.27
Development Co. Ltd.Guangdong Kaiyang Expressway Co. Ltd. Test 284433.96
Guangdong Guangfo Expressway Co. Ltd. Test 264622.64
Guangdong Boda Expressway Co. Ltd. Test 246626.81
Guangdong Yangmao Expressway Co. Ltd. Service Test 234951.58
Guangdong Guangle Expressway Co. Ltd. Test 224433.96
Guangdong Zhaoyang Expressway Co. Ltd. Test 197613.96
Guangdong Nanyue Traffic Qingyun
CPC card 122123.89
Expressway Management Center
Guangdong Luoyang Expressway Co. Ltd. Test 107547.17
Guangdong Traffic Investment Co. Ltd. Test 106132.07
Guangdong Maozhan Expressway Co. Ltd. Service Test 79245.28
Yunfu Guangyun Expressway Co. Ltd. Test 71433.97
Jiangmen Jianghe Expressway Co. Ltd. Test 63207.55
Guangdong Xinyue Traffic Investment Co. Ltd. CPC card sales revenue 46877.88
Guangdong Humen Bridge Co. Ltd. Test 38387.04
Guangdong Yueyun Traffic Co. Ltd. Test 11320.75
Subtotal 29707105.72 39187709.47
2.Non-operating income
Poly Changda Engineering Co. Ltd. Construction penalty 10200.00 653302.00
Subtotal 10200.00 653302.00
1902022 Annual Report
(2) Information of related lease
The Company was lessor：
In RMB
Category of lease The lease income confirmed The lease income confirmed
Name of lessee
assets in this year in last year
Guangdong Expressway Technology Co. Advertising lease
3876219.92
Ltd.Guangdong Expressway Technology Co.Property lease 171815.93
Ltd.Advertising lease
Guangdong Expressway Media Co. Ltd. 2809700.73 3988255.23
Guangdong Tongyi Expressway Service Service Area
2297830.863569880.44
Area Co. Ltd Lease
Guangdong Litong Technology Communication
1029782.831649376.50
Investment Co. Ltd. Piping
Guangdong Litong Technology
Land lease 16761.90
Investment Co. Ltd.Poly Changda Engineering Co. Ltd. Land lease 555557.14
Poly Changda Engineering Co. Ltd. Equipment lease 445910.62 255176.06
Total 11203579.93 9462688.23
1912022 Annual Report
- The company was lessee：
In RMB
Variable lease
payments not
Rental charges for short-term and included in lease Interest expenses on Increased use right
Rent paid
low-value assets (if any) liabilities lease liabilities assumed assets
measurement (if
any)
Lessor Category of leased assets
Amount of Amount of Amount Amount Amount of Amount of Amount of Amount of Amount Amount
current period previous period of of current period previous current previous of of
current previous period period period current previous
period period period period
Guangdong
Litong
Office space
Decelopment 12211529.46 7127471.60 349331.19 724776.16
Investment
Co. Ltd
Guangdong
Motor
Transportation Car rental fee 413153.90 873040.00 413153.90 873040.00
Group Co.Ltd
Guangdong
Litong Real
Office space
Eatate 95596.46 103843.13 95596.46 103843.13
Investment
Co. Ltd
Zhaoqing
Yuezhao Advertising column lease 195288.00
Highway Co.
1922022 Annual Report
Ltd.Zhaoqing
Yuezhao
Car rental fee 116504.86 9099.61
Highway Co.Ltd.
1932022 Annual Report
（3） Assets transfer and debt restructuring of related parties
In RMB
Related party Content
Amount of current period Amount of previous period
Guangdong Litong
Technology Investment Co. Sell equity investments 50623900.00
Ltd.
(4 ）Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
7033900.007682600.00
personnel
（5） Transactions with associated financial companies
（1）Deposit business
Related party Relationship Maximum Deposit Beginning The amount of this period
daily deposit interest rate balance
Total amount Total amount Ending
limit（10， range （10，000）
for this period is withdrawn balance000）（10，000
（10000） for this period
（10000）
Guangdong
Communications Controlled by the
300000.000.35%-2.85%152373.48736897.41649874.28239396.61
Group Finance Co. same parent company
Ltd
（2）Loan business
Related party Relationship Beginning The amount of this period
balance
Loan limit Total loan Total EndingLoant interest （10，10 amount of the repayment balance（ ，rate range 000） （10，
000） current period amount of the 000）
（10000） current period
（10000）
Guangdong
Communications Controlled by the
400000.002.95%-3.40%20022.9244485.421649.0162859.33
Group Finance Co. same parent company
Ltd
（3）Credit extension or other financial servicesRelated party Relationship Business type Total amount（10， Actual amount000） incurred（10，000)Guangdong Communications Controlled by the same Credit extension
220000.0063000.00
Group Finance Co. Ltd parent company
The Company respectively signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial
1942022 Annual Report
Bank of China on December 25 2017; and signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 22 2017 respectively joined the cash pool of Guangdong Communications Group
Finance Co. Ltd.Guangdong Guanghui Expressway Co. Ltd respectively signed the "Cash Management Business
Cooperation Agreement" with Guangdong Communications Group Finance Co. Ltd and Agricultural Bank of
China Co. Ltd Guangdong Branch on May 19 2020 joined the cash pool of Guangdong Communications Group
Finance Co. Ltd.
(6) Other related-party transactions
* On June 15 2016The company’s 29th meeting (Provisional) of the seventh board of directors was
convened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project
of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting
agreed that Guangdong Provincial Fokai Expressway Co. Ltd entrusts Guangdong Provincial Highway
Construction Co. Ltd with the construction management of the renovation and expansion project of Sanbao-to-
Shuikou Section of Shengyang-to-Haikou National Expressway and handling the related matters of the
entrustment of the construction management.* On March 25 2021 the Sixteenth Meeting of the Ninth Board of Directors of the Company held and
reviewed the Proposal on the Company's Estimated Daily Related Party Transactions in 2021. It is estimated
that the daily related party transactions include the Agreement on the Entrusted Management of the Preliminary
Work of the Reconstruction and Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao
Expressway signed by Beijing-Zhuhai Expressway Guangzhou-Zhuhai Section Co. Ltd. and Guangdong
Highway Construction Co. Ltd. in which the latter is responsible for the main management responsibilities and
all the preliminary work before the approval of the reconstruction and expansion project.* On November 30 2022 the fifth (interim) meeting of the 10th Board of Directors of the Company
reviewed and approved the Proposal on Entrusted Construction Management of the Reconstruction and
Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway and agreed that the subsidiary
Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway Co. Ltd. entrusted Guangdong Provincial Highway
Construction Co. Ltd. to carry out the whole-process construction management of the reconstruction and
expansion project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway. The above transactions have
been approved and implemented by the Board of Directors of Guangzhu Section of Beijing-Zhuhai Expressway
Co. Ltd.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Bad debt Balance of Bad debt
Balance of Book
Provision Book Provision
Guangdong Xinyue Traffic Investment
Contract assets 113642.50
Co. Ltd.Guangdong Feida Traffic Engineering
Contract assets 48230.00
Co.Ltd.Contract assets Guangdong Jiangzhong Expressway 8412.00
1952022 Annual Report
Co. Ltd.Guangdong Nanyue Traffic Qingyun
Contract assets 6900.00
Expressway Management Center
Total 177184.50
Guangdong Union electron Service
Account receivable 67197924.19 78368502.10
Co. Ltd.Jingzhu Expressway Guangzhu North
Account receivable 8321625.03 7783650.00
Section Co. Ltd.Account receivable Guangdong Humen Bridge Co. Ltd. 6072995.36 2083918.33
Account receivable Guangdong Expressway Technology 2315719.18
Investment Co. Ltd.Guangdong Expressway Media Co.Account receivable 522805.00 1854769.00
Ltd.Account receivable Poly Changda Engineering Co. Ltd. 265054.16 265054.16
Guangdong Feida Traffic Engineering
Account receivable 5531000.00
Co. Ltd.Guangdong Litong Technology
Account receivable 338298.13
Investment Co. Ltd.Guangdong Provincial Freeway
Account receivable 203632.00
Co.Ltd.Guangdong Xinyue Traffic Investment
Account receivable 94301.60
Co. Ltd.Guangdong Road Construction Co.Account receivable 54256.00
ltd.Shenzhen Huiyan Expressway Co.Account receivable 51000.00
Ltd.Guangdong Road Bridge Construction
Account receivable 29025.15
Development Co. Ltd.Account receivable Guangzhenzhu Expressway Co. ltd. 18192.00
Guangdong Boda Expressway Co.Account receivable 4530.99
Ltd.Total 84696122.92 96680129.46
Advanced payment Zhaoqing Yuezhao Highway Co. Ltd. 216750.00
Total 216750.00
Other Account Guangdong Litong Development
1653447.361653447.36
receivable Investment Co. Ltd.Other Account Guangdong Expressway Media Co.
978997.66649386.62
receivable Ltd.Other Account Guangdong Provincial Freeway
463491.88463491.88
receivable Co.Ltd.Other Account Guangdong Union electron Service
137851.0450000.00
receivable Co. Ltd.Other Account Guangdong Expressway Technology
65605.71
receivable Investment Co. Ltd.Other Account Guangdong Litong Property 18344.00 30004.00
1962022 Annual Report
receivable Development Co. Ltd.Other Account
Zhaoqing Yuezhao Highway Co. Ltd. 350000.00
receivable
Total 3317737.65 3196329.86
Non-current assets due Guangdong Communication Group
2731229.21
within one year Finance Co. ltd.Total 2731229.21
Other Non-Current Guangdong Traffic Development Co.
333398.00333398.00
Assets Ltd.Other Non-Current Guangdong Road Construction Co.
7089990.48
Assets Ltd.Total 333398.00 7423388.48
（2）Payables
In RMB
Amount at year
Name Related party Amount at year end beginning
Short-term loan Guangdong Communication Group Finance Co. ltd. 430387597.20
Total 430387597.20
Guangzhongjiang Expressway Project Management
Account payable 17466700.00 28000000.00
Dept
Account payable Poly Changda Engineering Co. Ltd. 12590171.30 29736553.34
Account payable Guangdong Expressway Technology Investment Co. 6935455.12
Ltd.Account payable Guangdong Xinyue Traffic Investment Co. Ltd. 6381639.70 10405248.06
Account payable Guangdong Lulutong Co. Ltd. 3787627.94 2525256.06
Account payable Guangdong Feida Traffic Engineering Co. Ltd. 3716816.94 5035975.88
Account payable Guangdong Communication Planning & Design 3008670.10 1759707.90
Institute Co. Ltd.Account payable Guangdong CommunicationTest Co. Ltd. 2400079.00
Account payable Guangdong Hualu Traffic Technology Co. Ltd. 1769785.29 4960992.02
Account payable Guangdong Provincial Freeway Co.Ltd. 1245443.50 1245443.50
Guangdong East Thinking Management Technology
Account payable 950630.00 2331700.01
Development Co. Ltd.Account payable Guangdong Litong Technology Investment Co. Ltd. 843562.91 1291067.95
Account payable Hunan Lianzhi Monitoring Technology Co. Ltd 640088.00 850700.00
Account payable Guangdong Yueyun Traffic Rescue Co. Ltd. 261800.00
Account payable Guangdong Changda Road Maintenance Co. Ltd. 231869.00 309101.00
Account payable Guangdong Union Electron Service Co.Ltd. 188039.97 50286.78
Account payable Guangzhou Xinyue Asphalt Co. Ltd. 46779.00 2773825.00
Account payable Guangzhou Aitesi Communication Equipment Co. 25194.00 2547594.00
Ltd.Account payable Guangdong Humen Bridge Co. Ltd. 2596817.45
Account payable Guangdong Yueyun Traffic Co. Ltd. 168277.20
Total 62490351.77 96588546.15
Advance received Guangdong Union electronic services co. Ltd. 1330729.13
Total 1330729.13
Dividend payable Guangdong Provincial Freeway Co.Ltd. 11550000.00
Total 11550000.00
1972022 Annual Report
Amount at year
Name Related party Amount at year end beginning
Other Payable account Poly Changda Engineering Co. Ltd. 20866108.48 17126203.40
Other Payable account Guangdong Expressway Technology Investment Co. 2298424.75
Ltd.Other Payable account Guangdong Road Construction Co. Ltd. 2000000.00 40459.66
Other Payable account Guangdong Hualu Traffic Technology Co. Ltd. 1905833.06 2084177.53
Other Payable account Guangdong Changda Road Maintenance Co. Ltd. 1628345.00 1630765.00
Other Payable account Guangdong Feida Traffic Engineering Co. Ltd. 1522615.96 1628931.87
Other Payable account Guangdong Xinyue Traffic Technology Co. Ltd. 1415273.20 1380379.20
Other Payable account Guangdong Xinyue Traffic Investment Co. Ltd. 1332556.89 4272693.60
Other Payable account Guangzhou Xinyue Asphalt Co. Ltd. 1054919.00 1054919.00
Other Payable account Guangdong Communication Test Co. Ltd. 971085.90
Other Payable account Guangdong Lulutong Co. Ltd. 859377.06 1127575.62
Guangzhongjiang Expressway Project Management
Other Payable account 200000.00 200000.00
Dept
Guangdong East Thinking Management Technology
Other Payable account 156534.54 191674.29
Development Co. Ltd.Guangdong Tongyi Expressway Service Area Co.Other Payable account 120000.00 120000.00
Ltd.Guangdong Communication Planning & Design
Other Payable account 110422.00 120422.00
Institute Co. Ltd.Other Payable account Guangdong Litong Technology Investment Co. Ltd. 92594.24 135772.00
Other Payable account Hunan Lianzhi Monitoring Technology Co. Ltd. 85785.50
Other Payable account Guangdong Expressway Media Co. Ltd. 50000.00 50000.00
Other Payable account Guangdong Yueyun Traffic Rescue Co. Ltd. 2000.00 2900.00
Total 36671875.58 31166873.17
Contract liabilities Guangdong Feida Traffic Engineering Co. Ltd. 22000.00
Total 22000.00
Non-current liabilities
Guangdong Litong Development Investment Co. Ltd. 2445724.55 11862198.24
due 1 year
Non-current liabilities
Guangdong Communication Group Finance Co. ltd. 2205700.01 2229166.68
due 1 year
Non-current liabilities
Zhaoqing Yuezhao Highway Co. Ltd. 111862.55
due 1 year
Total 4651424.56 14203227.47
Other current liabilities Guangdong Communication Group Co. Ltd. 500122916.67
Total 500122916.67
Lease Liabilities Guangdong Litong Development Investment Co. Ltd. 2445724.58
Total 2445724.58
Long-term loans Guangdong Communication Group Finance Co. ltd. 196000000.00 198000000.00
Total 196000000.00 198000000.00
1982022 Annual Report
7. Related party commitment
None
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
5.Other
XIV. Commitments
1. Significant commitments
The Company held the second (interim) meeting of the 10th Board of Directors on October 22 2022. The
meeting deliberated and passed the Proposal on Investing in the Reconstruction and Expansion Project of
Nansha-Zhuhai Section of Guangzhou-Macao Expressway with Capital Increase from Guangzhou-Zhuhai
Section Co. Ltd. of Beijing-Zhuhai Expressway and agreed that the company would invest in the construction
of the Reconstruction and Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway with
Capital Increase from Guangzhou-Zhuhai Section Co. Ltd. of Beijing-Zhuhai Expressway based on the
estimated investment amount of 15.425 billion yuan approved by Guangdong Provincial Development and
Reform Commission.The project capital is 35% of the estimated investment amount after deducting the expenses borne by the
government and the company undertakes the capital contribution of about 3.414 billion yuan according to the
shareholding ratio. This matter has been reviewed and approved by the Company's third extraordinary general
meeting in 2022.As of December 31 2022 the accumulated cost of the reconstruction and expansion project of Nansha-
Zhuhai section of Guangzhou-Macao Expressway was 553543942.17 yuan.
2. Contingency
(1) Significant contingency at balance sheet date
As of December 312022 the Company did not need to disclose important commitments.
3. Contingency
(1) Significant contingency at balance sheet date
As of December 312022 the Company did not need to disclose important commitments.
(2) The Company have no significant contingency to disclose also should be stated
None
XV. Events after balance sheet date
1. Notes of other significant events
None
1.Profit distribution
In RMB
Profit or dividend to be distributed 894865021.93
1992022 Annual Report
Profits or dividends declared upon
examination and approval
Withdraw RMB894865021.93 as dividend payment funds for 2022. Based on
the total share capital of 2090806126 shares at the end of 2022 a cash dividend of
4.28 yuan (including tax) will be distributed for every 10 shares and the remaining
undistributed profits will be carried forward to the next year. The foreign currency
Profit distribution plan
translation price of cash dividends for B-share shareholders is determined by the mid-
price of buying and selling of HKD/RMB announced by People's Bank of China in the
first working day after the dividend payment resolution is made at the 2022 Annual
General Meeting.
3. Sales return
None
4. Notes of other significant events
None
XVI.Other significant events
1. Segment information
The company's business for the Guangfo Expressway the Fokai Expressway Guanghui Expressway and Jingzhu
Expressway Guangzhu Section toll collection and maintenance work the technology industry and provide
investment advice no other nature of the business no reportable segment.
2002022 Annual Report
2.Government Subsidy
(1) Government subsidies included in deferred revenue are subsequently measured by the total amount method
Subsidy item Category Opening New subsidyThe carry-over in currentOther Closing Presentation items carriedAsset-
balance amount in currentperiod is included in profit changes balance over into profit or loss in related/revenue-
period and loss amount the current period related
Cancel the special subsidy for theFinancial
expressway provincial toll stationappropriation 30978093.11 10046949.24 20931143.87Other income Assets related
project
Financial
Charging infrastructure incentive funds 80857.00 2788.17 78068.83Other income Assets related
appropriation
(2) Government subsidies included in current profits and losses using the total amount method
Subsidy item Category Amount included in profit or loss inPresentation items included inAsset-related/revenue-related
the current period profit or loss in the current period
Subsidy for post stabilization Financial appropriation 2344310.46 Other income Income related
Technology reward Financial appropriation 20000.00 Other income Income related
2012022 Annual Report
3.Other important transactions and events have an impact on investors decision-making
(1) Performance compensation（ 1 ） The Company's plan to purchase 21% equity of Guangdong Guanghui Expressway Co. Ltd.(hereinafter referred to as "Guanghui") held by Guangdong Expressway Co. Ltd. (hereinafter referred to as
"Guangdong Expressway") by payment in cash and related matters have been adopted by the resolution of the
third extraordinary general meeting of shareholders in 2020. According to the Profit Compensation Agreement
signed by Guangdong Expressway and the Company it is agreed that Guangdong Expressway shall undertake the
compensation obligation when the actual net profit of Guanghui is less than the predicted net profit within the
compensation period. The compensation period is the year when the transaction is completed and the next two
years thereafter namely 2020 2021 and 2022. After negotiation between the Company and Guangdong
Expressway the predicted net profit of Guanghui after deducting non-recurring gains and losses in 2020 2021
and 2022 is RMB 652477500 RMB 1112587300 and RMB 1234200900 respectively. Within the
compensation period if the accumulated realized net profit at the end of any fiscal year of Guanghui does not
reach the accumulated predicted net profit Guangdong Expressway will compensate the company in cash and the
specific compensation amount paid by Guangdong Expressway in that year will be calculated and determined
according to the following formula: current compensation amount promised for performance = (accumulated
predicted net profit as of the end of the current period - accumulated realized net profit as of the end of the current
period) ÷ sum of predicted net profits of each year within the compensation period × transaction price of the
underlying assets - accumulated compensated amount of Guangdong Expressway. When the compensation
amount calculated in each year is less than the RMB 0 the value shall be taken as RMB 0 and the compensated
amount shall not be reversed.The net profit of Guangzhou-Huizhou Company (excluding non-recurring gains and losses) in 2020 was
RMB 769232600 RMB 116755100 more than the promised amount; the net profit of Guangzhou-Huizhou
Company (excluding non-recurring gains and losses) in 2021 was RMB 1105444400 RMB 7142900 less
than the promised amount; In 2022 the net profit (excluding non-recurring gains and losses) was 916288200
yuan 317912700 yuan less than the promised number. As of the end of 2022 the cumulative net profit
(Deduction of non-recurring profit and loss) was 2790965200 yuan which was 208300500 yuan less than
the cumulative committed profit.In 2022 affected by the impact of the Public health events and in response to the State Council's 10%
reduction in truck tolls of toll roads in the fourth quarter of 2022 Guanghui toll revenue fell sharply. According
to the "Performance Compensation Agreement" signed by the Company and the Provincial Expressway and
combined with the actual situation of the performance of Guanghui Expressway affected by the Public health
events and the negotiation by the Company with the Provincial Expressway on matters related to the
performance commitment the contingent consideration formed by the performance compensation has not been
recognized at present.
(2) Follow-up management and maintenance issues after the expiration of the Guangzhou-Foshan
Expressway operation
The Company received the Notice of the Guangdong Provincial Department of Transport on Matters
Related to the Disposal of the Guangfo Expressway Toll Period (No. 24 [2022] Yue Jiaoying Memorandum)
2022022 Annual Report
and the Guangfo Expressway operated by its holding subsidiary Guangfo Expressway Co. Ltd (hereinafter
referred to as "Guangfo Company") stopped collecting tolls from midnight on March 3 2022. It retains the
existing toll facilities to operate as usual in a zero-rate manner exempts all vehicle tolls for vehicles passing
through this section of the road and collects vehicle tolls for other road sections on their behalf. After the toll
collection is stopped the Guangfo Company will continue to be responsible for the management and
maintenance of the Guangfo Expressway.The source of funds for management and maintenance expenses paid by Guangfo on behalf of remains to be
further clarified and as of December 31 2022 the management and maintenance expenses paid by Guangfo
Company on behalf of is 97749481.71 yuan.
2032022 Annual Report
XVII..Notes of main items in financial reports of parent company
1. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Balance Year-beginning
Categ Book Balance Bad debt provision Book Balance Bad debt provision
ory Amount Proportio Amo Proportio Book Book
value Amount Proportio
Amo Proportio
value
n(%) unt n(%) n(%) unt n(%)
Of
which
Accru
al of
bad
debt 2381701 2381701 2420869 2420869
100.00%100.00%
provisi 6.30 6.30 2.49 2.49
on by
portfol
io
Of
which
：
Aging
2381701238170124208692420869
portfol 100.00% 100.00%
6.306.302.492.49
io
2381701238170124208692420869
Total 100.00% 100.00%
6.306.302.492.49
Accrual of bad debt provision by porfolio: Accounts receivables with bad debt provision are recognised by
portfolio by age
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Expected credit loss rate(%)
Within 1 year 23817016.30
Total 23817016.30
Note：
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Book balance
Within 1 year（Including 1 year） 23817016.30
2042022 Annual Report
Total 23817016.30
(2) Accounts receivable withdraw reversed or collected during the reporting period
None
（3）The current accounts receivable write-offs situation
None
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Guangdong Union Electronic
22606597.1294.92%
Services Co. Ltd.Guangdong Expressway
1210419.185.08%
Technology Investment Co. Ltd.Total 23817016.30 100.00%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
2.Other receivable
In RMB
Items Year-end balance Year-beginning balance
Dividend receivable 36905472.90 1205472.90
Other receivable 1505117198.28 5680509.70
Total 1542022671.18 6885982.60
（1）Interest receivable：None
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment
1205472.901205472.90
No.1 Limited partnership enterprise
Guangdong Guanghui Expressway Co. Ltd. 35700000.00
Total 36905472.90 1205472.90
2）Significant dividend receivable aged over 1 year
I n RMB
Whether or not the
Balance in impairment and the
Items) Aging Reasons for non-recovery
year-end basis for its
determination
Guangdong Radio and Television 4-5 The partnership agreement No it can be recovered
1205472.90
Networks investment No.1 Limited years expires and can be recovered in the future
2052022 Annual Report
partnership enterprise after the extension procedures
are completed
Total 1205472.90
3）The withdrawal amount of the bad debt provision
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Items Balance in year-end Balance Year-beginning
Securities trading settlement funds 30844110.43 30844110.43
Deposit 2090516.36 2102176.36
Petty cash 1293602.05 1519593.22
Other 1501733079.87 2058740.12
Subtotal 1535961308.71 36524620.13
Less：Provision for bad debts 30844110.43 30844110.43
Total 1505117198.28 5680509.70
2）The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Bad Debt Reserves Expected credit losses Expected credit loss for the entire duration Total
over the next 12 over life (no credit
(credit impairment
months impairment)
occurred)
Balance as at January
30844110.4330844110.43
12022
Balance as at January
12022 in current
Balance as at
30844110.4330844110.43
December 312022
Loss provision changes in current period change in book balance with significant amount
□Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Book balanceWithin 1 year(Including 1 year） 1502102861.29
1-2 years 28611.55
2-3 years 2052691.71
Over 3 years 31777144.16
3-4 years 26560.70
4-5 years 442981.15
Over 5 years 31307602.31
Total 1535961308.71
2062022 Annual Report
3） Accounts receivable withdraw reversed or collected during the reporting period
None
4）The actual write-off other accounts receivable: None
5)Other receivables are classified according to the nature
In RMB
Proportion of the
total year end
Closing balance of
Name Nature Closing balance Aging balance of the
bad debt provision
accounts
receivable(%)
Jingzhu Expressway Reconstruction and
Within 1
Guangzhu Section expansion of investment 1500593541.66 97.71%
year
Co. Ltd. funds and interest
Kunlun Securities Securities trading settl Over 5
30844110.432.00%30844110.43
Co.Ltd ement funds years
Guangdong Litong
Development Vehicle parking deposit 22980.00 1-2 years 0.00%
Investment Co. Ltd.Guangdong Litong
Development Lease deposit 1630467.36 2-3 years 0.11%
Investment Co. Ltd
Guangdong
Entrusted management Over 5
Provincial Freeway 463491.88 0.03%
fee years
Co.Ltd.Water and electricity fee
Savills Property
working capital
Consulting
management fee deposit 4200.00 1-2 years 0.00%
(Guangzhou) Co.vehicle parking space
Ltd
deposit
Water and electricity fee
Savills Property
working capital
Consulting
management fee deposit 414525.00 2-3 years 0.03%
(Guangzhou) Co.vehicle parking space
Ltd
deposit
Total 1533973316.33 99.88% 30844110.43
6) Accounts receivable involved with government subsidies
None
7) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
3. Long-term equity investment
In RMB
End of term Beginning of term
Items Impairment Impairment
Book Balance Book value Book Balance Book value
provision provision
Investment in
3374330463.433374330463.433257062345.853257062345.85
subsidiaries
Investment in 2722148806.07 2722148806.07 2535548456.61 2535548456.61
2072022 Annual Report
joint ventures and
associates
Total 6096479269.50 6096479269.50 5792610802.46 5792610802.46
2082022 Annual Report
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period
Closing balance of
Name Opening balance Add Decreased Withdrawn impairment Closing balance
Other impairment provision
investment investment provision
Jingzhu Expressway Guangzhu Section
871171883.08871171883.08
Co. Ltd.Guangfo Expressway Co. ltd. 154982475.25 154982475.25
Guangdong Expressway Technology
95731882.4295731882.420.00
Investment Co. Ltd.Yuegao Capital Investment (Guangzhou)
109500000.00213000000.00322500000.00
Co. Ltd.Guanghui Expressway Co. Ltd. 2025676105.10 2025676105.10
Total 3257062345.85 213000000.00 95731882.42 3374330463.43
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period Closing
Decr balance
Provis
ease of
Investment Other Other Announced for ion
Name Opening balance Increase in in Ot Closing balance impairm
income under comprehensive changes in distributing cash for
investment inves her ent
equity method income equity dividend or profit impair
tmen provisio
ment
t n
I. Joint ventures
II. Associated enterprises
Guangdong Jiangzhong
318091639.29131250000.0012928724.1215387213.01446883150.40
Expressway Co. Ltd.Ganzhou Gankang
154118397.129036040.88163154438.00
Expressway Co. Ltd.Ganzhou Kangda Expressway 238101017.69 35167917.44 27000000.00 246268935.13
2092022 Annual Report
Co. Ltd.ShenzhenHuiyan Expressway
320966384.1733927696.216224313.06348669767.32
Co. Ltd.Zhaoqing Yuezhao Highway
315837951.3542621814.5248250000.00310209765.87
Co. Ltd.Guoyuan Securities Co.Ltd. 972089465.72 41663112.81 -7194460.81 18626864.76 987931252.96
Guangdong Yuepu Small
216343601.278556253.8757008.185925366.93219031496.39
Refinancing Co. Ltd
Subtotal 2535548456.61 131250000.00 183901559.85 -7194460.81 57008.18 121413757.76 2722148806.07
Total 2535548456.61 131250000.00 183901559.85 -7194460.81 57008.18 121413757.76 2722148806.07
2102022 Annual Report
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Revenue Cost Revenue Cost
Main business 1296212805.59 584496313.76 1454377306.80 714045421.17
Other 14566863.59 5138086.94 14987127.57 4588762.80
Total 1310779669.18 589634400.70 1469364434.37 718634183.97
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income accounted by cost
966664177.011007249778.63
method
Long-term equity investment income accounted by
183901559.85221639163.75
equity method
Investment income from disposal of Long-term equity
-45107982.42
investment
Dividend income from other equity instrument
47286243.7450056360.49
investments during the holding period
Interest income from debt investment during holding
18499161.7437923704.59
period.Other 2087067.60
Total 1173330227.52 1316869007.46
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
N
Items Amount ot
es
Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is
62389.24
made)
Government subsidies recognized in current gain and loss(excluding those closely related to the Company’s
12414047.87
business and granted under the state’s policies)
Gain and loss from change of the fair value arising from transactional monetary assets transactional financial
liabilities as held as well as the investment income arising from disposal of the transactional monetary assets
10400000.00
transactional financial liabilities and financial assets available for sale excluding the effective hedging
transaction in connection with the Company’s normal business
Gain/loss from external entrusted loan 25515.00
The impairment provision for the advance expenses that have occurred but need to be defined from the
-97749481.71
source of funds
Net amount of non-operating income and expense except the aforesaid items -1798078.90
Other non-recurring Gains/loss items 14877866.34
Less :Influenced amount of income tax -5627816.96
2112022 Annual Report
Influenced amount of minor shareholders’ equity (after tax) -21610132.76
Total -34529792.44 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
√Applicable□ Not applicable
Due to the special nature of the impairment provision for management and maintenance expenses advanced by
the Guangzhou-Foshan Expressway to be clarified it will affect the normal judgment of the Company's
operating performance and profitability by the user of the report.None
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses
and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information
Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been
defined as recurring gains and losses it is necessary to explain the reason.□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
2. Return on equity (ROE) and earnings per share (EPS)
Weighted EPS（Yuan/share）
Profit as of reporting period average ROE
EPS-basic EPS-diluted
(%)
Net profit attributable to common
14.30%0.610.61
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
14.69%0.630.63
deduction of non-recurring profit
and loss
3. Differences between accounting data under domestic and overseas accounting standards
（1）．Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable（ 2） . Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.□ Applicable□√ Not applicable
(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign accounting sta
ndards. If the data that has been audited by an overseas audit institution is adjusted for differences the name of t
he overseas institution should be indicated
None
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